NCDMB Launches Probe into Sterling Oil (SEEPCO) for Expatriate Quota Breaches and Anti-Labor Practices

The NCDMB praised PENGASSAN for raising the alarm, with the union’s National President, Festus Osifo, accusing SEEPCO of sidelining local talent. The board emphasized its track record of enforcement, noting that it has Nigerianized 609 technical positions in the sector between 2020 and 2024 under the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010. This latest investigation underscores the agency’s resolve to ensure compliance and protect opportunities for Nigerian workers.

A History of Non-Compliance

SEEPCO is no stranger to scrutiny from the NCDMB. The board revealed that the company has a troubling history of flouting local content regulations. In 2017, SEEPCO was caught employing five expatriates without proper approvals. As a penalty, the company was ordered to train five Nigerians in specialized fields like Marine Engineering and Subsurface Drilling Engineering. However, the violations didn’t stop there.

In 2018, the NCDMB uncovered a more egregious breach when SEEPCO illegally deployed 402 expatriates and executed projects without authorization. The board responded decisively, imposing a series of sanctions. SEEPCO was instructed to disengage the expatriates and provide evidence of their departure, follow proper expatriate quota procedures, adhere to tendering and contract-awarding rules, reconcile outstanding payments to the Nigerian Content Development Fund (NCDF), and train and employ 40 Nigerians. Despite these directives, SEEPCO allegedly failed to comply fully, prompting the NCDMB to pursue legal action under Section 68 of the NOGICD Act.

In 2020, SEEPCO sought an out-of-court settlement, pledging to address its compliance failures and fulfill remediation requirements. By 2022, the company had trained 40 Nigerians as mandated, but it fell short of employing them, leaving a key commitment unfulfilled.

Additionally, SEEPCO made only partial remittances to the NCDF, further frustrating the NCDMB’s efforts to enforce accountability. The board accused SEEPCO of refusing to respond to subsequent demands or meet other Nigerian content obligations, casting doubt on the company’s willingness to reform.

To address ongoing concerns, the NCDMB has requested statutory submissions from SEEPCO and scheduled a performance review for March 2025. The agency warned that failure to comply could lead to further legal consequences, signaling a no-tolerance stance toward violations of local content laws.

NCDMB’s Broader Mission

The NCDMB remains steadfast in its mission to prioritize Nigerian talent and create employment opportunities in the oil and gas sector. Through the NOGICD Act, the board has bolstered Nigeria’s capacity to handle complex operations, reducing reliance on foreign expertise. The agency vowed to conduct a thorough investigation into SEEPCO’s latest alleged infractions, assuring PENGASSAN and the public that it will not hesitate to sanction non-compliant firms.

As the March 2025 review looms, all eyes are on SEEPCO to see whether it will finally align with Nigeria’s local content framework—or face the full weight of the NCDMB’s enforcement powers. For now, the board’s message is clear: compliance is non-negotiable, and Nigerian workers will not be overlooked.