NCDMB Probes Sterling Oil Over Alleged Violation Of Expatriate Quota, Anti-Labor Practices
The Nigerian Content Development and Monitoring Board (NCDMB) has vowed to probe Sterling Oil Exploration and Energy Production Company (SEEPCO) over alleged expatriate quota violations and anti-labour practices.
The NCDMB said this in a statement issued by the board on Monday.
In the statement, the NCDMB vowed to keep enforcing local content laws in the oil and gas sector.
The NCDMB’s statement comes after a protest by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) at SEEPCO’s headquarters in Lagos.
The protest was led by the President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Mr. Festus Osifo, at the headquarters of Sterling Oil Exploration and Energy Production Company (SEEPCO), at Victoria Island, Lagos.
The NCDMB commended the PENGASSAN leader for acknowledging that qualified Nigerian personnel are occupying top leadership and technical positions in most international and indigenous operating oil and gas companies, and are performing well in those roles.
It expressed delight that PENGASSAN served as a whistleblower over the alleged expatriate quota abuse by the management of Sterling Oil and assured the union and the general public that it would investigate the matter exhaustively and take necessary actions.
The NCDMB said, “We can confirm that the NCDMB sanctioned SEEPCO a few years ago for gross violations of the NOGICD Act. Recently, we have been engaging the company for the same reasons.
“In 2017, the NCDMB identified five expatriates deployed by SEEPCO without obtaining the relevant NCDMB approvals. As a result, NCDMB penalised the company for this non-compliant deployment of expatriates. To remediate this, SEEPCO trained five Nigerians in marine engineering and subsurface drilling engineering for nine months.
“In 2018, NCDMB identified 402 expatriates deployed by SEEPCO without approval. Additionally, NCDMB discovered projects, contracts, and purchase orders from multiple projects that were awarded and executed without appropriate approvals.
“NCDMB penalised SEEPCO for these infractions and directed SEEPCO and its affiliates to disengage the 402 expatriates and provide evidence of their disengagement and exit to the Board; commence and comply with the NCDMB Expatriate Quota application process; comply with the Board’s requirements for tendering and awarding projects, contracts, and purchase orders.
“Regrettably, SEEPCO ignored those directives until the Board commenced legal proceedings against the firm, in line with Section 68 of the NOGICD Act.”
The NCDMB added that in 2020, SEEPCO sought an out-of-court settlement and committed to addressing the compliance issues and undertaking the remediation, noting that SEEPCO has refused to respond and comply with other Nigerian content requirements.
It added, “In 2023, SEEPCO obtained expatriate quota approval from the board for three positions. From our records, SEEPCO has been granted only seven expatiate positions between 2017 and 2023.
“The Board has requested statutory submissions from SEEPCo and scheduled a performance review session for March 2025.
“NCDMB Expatriate Quota approvals and compliance and enforcement are applicable to only companies with investments or executing projects in the oil and gas industry. Non-oil and gas expatriate quota utilisation does not come to the Board, but rather directly to the Ministry of Interior.
“NCDMB is committed to the effective implementation and enforcement of the NOGICD Act in the oil and gas sector, with a view to creating employment opportunities for Nigerians, deepening Nigerian Content and boosting the economy.
“The Board will not fail to sanction firms that flagrantly flout provisions of the NOGICD Act. The Board welcomes the collaboration of stakeholders, including oil unions, towards achieving the intendments of the NOGICD Act.”
NCDMB Probes Sterling Oil Over Alleged Violation Of Expatriate Quota, Anti-Labor Practices is first published on The Whistler Newspaper
