The facility, located along the Cawthorne Channel between Degema and Akuku Toru Local Government Areas, was shut down after workers withdrew their services in protest against NNPC Eighteen Operating Limited (NEOL), a subsidiary of the Nigerian National Petroleum Company Limited (NNPCL).
In a strike directive issued on Wednesday, PENGASSAN’s Port Harcourt Zonal Assistant General Secretary, Sere Nwikiabeh, instructed members to halt all operations “until our demands are met.” The move followed the expiration of a 14-day ultimatum and an additional grace period given to management.
Union’s Grievances
PENGASSAN accused NEOL of ignoring repeated engagements and being “adamant to our demands.” The association listed several unresolved issues, including:
- Failure to deduct and remit outstanding check-off dues for members attached to ND Engineering Limited.
- Non-redeployment of affected members to other contractors.
- Refusal to respond to its Charter of Demands for the commencement of branch Collective Bargaining Agreement negotiations.
- Continued non-recognition of the Branch Executive Committee and denial of its rights and privileges.
In a prior letter dated July 14, 2025, the union alleged “persistent unfair labour practices” by NEOL, citing non-remittance of dues, refusal to negotiate, and failure to acknowledge the elected branch leadership.
“Despite several reminders and engagements, management has continually failed to address these matters,” PENGASSAN said in the letter.
Impact on Production
The union vowed that the strike would continue until all concerns are resolved, warning that it is prepared to take “every lawful step necessary to safeguard members’ rights and interests.”
The shutdown of OML-18—one of Rivers State’s key oil assets—is expected to disrupt production output significantly, compounding challenges for NEOL and its parent company NNPCL until an agreement is reached.