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Oil Workers And Industrial Action

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Oil company workers under the aegis of the Petroleum and National Gas Senior Staff Association of Nigeria (PENGASSAN) recently issued a sevenday ultimatum  to the Rivers State Government and the management of VAM Onne Nigeria Limited, to either resolve the industrial relations crisis in the  company or have all oil and gas operations shut down indefinitely. The workers alleged that the company in collaboration with some politicians sponsored thugs numbering over 15 armed with dangerous weapons to harass, manhandle, assault them and disrupted the peaceful protest organised by PENGASSAN, Port  Harcourt Zone against the management of VAM Onne Nigeria Limited.

In a petition addressed to the Rivers State Governor, Rt Hon Chibuike Rotimi Amaechi dated February 8, 2012 and signed by the Assistant General Secretary of PENGASSAN, Port Harcourt Zone, Mr Sunday Onyenachi, the workers said,” as a result our National Secretariat has directed that after seven days, with effect from February 9, 2012, there will be a complete shutdown of all oil and gas operations in Rivers State.  If thereafter, the matter is not resolved within the period, the entire 10 states in Port Harcourt Zone including Abia, Akwa Ibom, Anambra, Bayelsa, Enugu, Imo and Rivers State will follow suit and this will escalate the crisis.”

They alleged that the  country Manager of VAM Onne, Mr Engene Fogli victimised 27 PENGASSAN members who have been locked out for over  three months without salaries. The workers accused the  VAM manager of  engaging in anti-union activities ranging from intimidation, harassment, lockout, victimisation and enslavement of Nigerian workers, flagrant abuse of our extant labour laws and release of Nigerians from employment without clearance from the Department of Petroleum Resources (DPR). And more importantly, refusal to honour agreement which was reached at a meeting at the instance of Prince of Onne community, Prince (Dr) Jime Osaronu and Mr Sunday Dudu between the association and the management on November 15, 2011 at Novetel Hotel , Port Harcourt.

They also said Mr Fogli had started recruiting new staff to replace workers that were locked out because they exercised their fundamental rights to belong to trade union.

Similarly the independent Petroleum Marketers Association of Nigeria (IPMAN), Ilorin branch penultimate Saturday threatened that the association would withdraw its services with effect from Tuesday last week because the lives of its members were being threatened by vandals of petroleum pipelines.

Chairman of the association Alhaji Holaji Agbolade bemoaned a situation where those arrested for pipeline vandalism by the Police, State Security Serviced (SSS) and the Nigeria Security and Civil Defence Corps were not properly persecuted.

He said : “Pipeline vandalism is an economic sabotage, we are worried about a situation where suspects are arrested and released within a few days without prosecution! According to the association, “we will likely withdraw our services and fuel will not be sold at the Ilorin Depot to any filling station. He gave an instance where about two years ago, the police arrested five persons who were each sentenced to five years imprisonment by the Federal High Court but were released two weeks ago without completing their jail terms by another court and called for the re- arrest of the  convicted pipeline vandals.

All these came at the time when fuel tanker drivers embarked on their strike that triggered some days of petrol scarcity.

It is known that the prime function of trade unions the world over is to protect and improve the wages and working conditions of their members through collective action, whether by bargaining with the employers by promoting legislation. In fact, historically, one of the main reasons for the setting up of trade unions was that the workers might acquire a combined strength which would enable then to bargain more effectively with the employers and to replace the individual contract by a collective agreement.

In Nigeria, many employers and employees refuse to believe that this is what happens and they think that the collective agreements are fundamentally different in form and content from what obtains outside.

Another midely held belief is that the workers in Nigeria are not free to withhold their services if they are dissatisfied with their conditions of work.

Freedom of association does not merely imply the right of workers to form or join an organization and the right of that organization to have a legal existence. It also implies freedom for the organization to function. If freedom of association is to have its full value, the workers must be able to use their organization for collective action and must enjoy the right to strike if they regard their working conditions as unsatisfactory.

Another thing to be remembered is that the structure, functions and rights of the Nigerian trade unions cannot be properly appreciated unless the economic, political and social structure of the country is taken into account. Personal or group circumstance is less important in the case of the nation. The fact that the rights of oil workers are trampled on or tampered with as alleged by PENGASSAN and the IPMAN do not call for strikes that are not negotiated or dialogued before commencement. There are various methods for dealing with industrial disputes which were not adopted by the tanker drivers and oil workers in the current crisis.

The withdrawal of services by tanker drivers for about six days and the threats by the PPPRA, PENGASSA and IPMAN has resulted in enormous pressure on other sectors of the economy.

Oil workers should acknowledge the fact that the oil and gas industry is an important aspect of the nations economy and any action such as strike critically paralyses the economy and the movement of people.

Petroleum products distribution in Nigeria and Rivers State in particular in the past one week has continued to suffer from the negative effects of the marketers and oil workers. People are forced to pay exorbitantly for petroleum products  which also affects transport fares. The reputation of some oil workers and their managements has been battered by their failure to come to terms.

Regardless of what the issues are, citizens of the country and government are not happy with the situation in which they find themselves while the fuel scarcity lasts.

Cheap and effective business and services are no longer guaranteed in the country. This is why it is incumbent on the state and federal governments to seize the initiative and end this improfitable standoff once and for all.

The Tide learnt that the  Federal Government might have begun the process of calling a stakeholders meeting where some of the issues unearthed during the hearing on the subsidy claims by the National Assembly would be addressed with a view to checking the fuel scarcity.

The issues raised by IPMAN and the PENGASSAN concerning intimidation and other ill-treatments meted out to their members should be addressed just as perpetrators of pipeline vandalism should be treated according to the law as it concerns economic sabotage. Oil workers on their part should not in any way allow themselves to be used by anyone or group whatsoever to disrupt the distribution process of petroleum products.

Security agencies should take serious the issue of pipeline vandals because their activities are counter productive, especially now that there is the need for improvement in the allocation of petroleum products.

The Rivers State government would not wish to put itself in a position where it will be vulnerable to copycat strikes and it must be realised that the consequences of this quibbling have resulted in economic downturn and penury on the citizens.

When two elephants fight, the resultant effect is always on the grasses. While the oil workers or tanker drivers argue over the fine points of their grievances, the citizens are suffering.

As the body charged with overall well-being of the citizens, government should endeavour to bring the strike and threats under control. The welfare of the people is simply too important to be put on hold through strikes. The companies managements should see reasons with their workers and give them what they want if their demands are genuine.

There should be evidence of  faith in the demands of the workers and it must be obvious that they are making a point. There is the need for negotiations between the government, company managements and the workers to find solution to the situation.

The Nigeria National Petroleum Corporation (NNPC) alleged the fear of petroleum products scarcity as it claimed that Nigeria still has over 35 days sufficiency and more importers of petrol are in the business, so people should  face what they are licensed to do rather than causing artificial scarcity of fuel.

There are many issues involved in the  petroleum sector reform which need to be addressed. Insecurity in the nation’s high seas is one of the factors that bring about scarcity of petroleum products. Some oil companies have applied for as much as 160,000 metric tones but had not been able to get that quantity while some take their vessels to neighbouring countries such as the republic of Benin and Togo because of inadequate storage facilities at the country’s ports, so they have to split the products, which is a security risk because of the way pirates operate and the difficulty in the jetties.

As a way forward, there is need for re-classification of the oil companies  in a bid to effectively reposition the oil  industry. The dearth of facilities at our ports has also forced importers to use ports in neighbouring countries and there should be market forces to determine quality of fuel imported and the prices they are sold as an inspector  is made to oversee the quality and quantity of import.

 

Shedie Okpara

 

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Oil & Energy

“NCDMB, MJD, Renaissance Launch Pipeline Engineering, Corrosion Control Training 

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A leading indigenous oil & gas construction and servicing company, MJD Oilfield Services Limited, in partnership with the Nigerian Content Development and Monitoring Board (NCDMB) and Renaissance Africa Energy Company Limited, has officially commenced a comprehensive 12-month Nigerian Content Human Capital Development (NC-HCD) training programme.
The programme is designed to equip 33 Nigerian graduates in engineering and related disciplines with advanced technical competencies in pipeline pigging, corrosion control, and integrity monitoring, thereby strengthening local capacity within the oil and gas sector.
The intensive, year-long initiative integrates both theoretical instruction and practical, hands-on training, with the objective of developing highly skilled and industry-ready professionals capable of contributing meaningfully to Nigeria’s energy infrastructure.
Speaking at the official kick-off ceremony in PortHarcourt, the Managing Director, MJD Oilfield Services Ltd., Olayemi Familusi, emphasised the significance of the programme and urged participants to take full advantage of the opportunity.
He also commended the NCDMB for its sustained contributions to the growth and transformation of the Nigerian oil and gas industry.
“The Nigerian oil and gas industry has undergone remarkable development since the establishment of the NCDMB,” he stated. “We commend the Board for its unwavering commitment to the advancement of Nigerian talent and the industry at large. Beneficiaries are encouraged to apply these acquired skills within the country, where opportunities for growth and impact continue to expand.”
In his address, the Executive Secretary, NCDMB, Felix Omatsola Ogbe, described the initiative as a strategic investment in Nigeria’s energy security.
Represented by the Manager, Human Capital Development, NCDMB, Mrs. Tarilate Bribena-Teide, Ogbe highlighted the critical importance of pipeline integrity expertise, particularly for key national assets such as the 614-kilometre Ajaokuta–Kaduna–Kano (AKK) Gas Pipeline.
He further underscored the Board’s strict expectations regarding discipline and commitment, insisting that a minimum attendance rate of 99.9 per cent  is mandatory.
Ogbe said “The Board will not hesitate to withdraw and replace any participant who demonstrates a lack of commitment. This programme requires full dedication and has the potential to significantly transform participants’ career trajectories.”
Also speaking at the event, representative of Renaissance Africa Energy Company Limited, Funso Alabi, reaffirmed the importance of strategic collaboration in developing a competent workforce capable of sustaining the long-term reliability and efficiency of Nigeria’s energy infrastructure.
The technical training partner, DORET Limited, presented an overview of the curriculum, which is aligned with the NCDMB Human Capital Development Implementation Guidelines (2020) and the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
The programme combines classroom-based learning with practical workshop sessions, with a strong emphasis on promoting local content development and technical excellence.
To ensure participants’ full engagement, the programme is fully supported with monthly stipends, meal allowances, mobilisation and demobilisation allowance, learning resources (including laptops and Personal Protective Equipment), health insurance coverage, and both local and international certifications upon successful completion.
The initiative further represents a critical pathway for young Nigerian graduates to transition into the oil and gas industry, reinforcing nation’s capacity to meet its complex technical demands with locally developed expertise.
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Oil & Energy

Fuel Price Hike: NAJA Tasks FG On Crude Supply To Local Refineries 

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The Nigeria Auto Journalists Association(NAJA ), has called on President Bola Ahmed Tinubu to take decisive steps toward stabilising Nigeria’s fuel market by guaranteeing the direct supply of crude oil to domestic refineries, particularly the Dangote Refinery, as global tensions continue to unsettle energy prices.
In a statement issued last Thursday, the association warned that the rising cost of petrol, exacerbated by the ongoing crisis in the Middle East, poses a serious threat to economic stability and the welfare of Nigerians already grappling with inflationary pressures.
NAJA argued that Nigeria must urgently insulate its downstream petroleum sector from external shocks by strengthening local refining capacity.
The association’s intervention comes amid heightened volatility in the international oil market, where geopolitical developments have continued to influence crude prices and, by extension, the cost of refined petroleum products.
NAJA noted that while recent policy measures by the federal government signal a willingness to address the crisis, more targeted interventions are required to achieve lasting stability. The group specifically referenced the government’s plan to distribute 100,000 Compressed Natural Gas (CNG) conversion kits nationwide, describing it as a commendable but insufficient response to the scale of the challenge.
According to the association, the CNG initiative represents a forward-looking approach to energy diversification, particularly within the transportation sector. However, it stressed that alternative fuel adoption alone cannot resolve the immediate pressures facing petrol consumers. Instead, NAJA maintained that ensuring the efficient operation of domestic refineries remains the most viable short-term solution.
Speaking on behalf of the association, its Chairman, Theodore Opara, urged the federal government to implement policies that would enable local refineries to access crude oil directly from the Nigerian National Petroleum Company Limited, preferably in naira. He argued that such a move would significantly reduce the exposure of domestic fuel production to fluctuations in the global oil market.
Opara, while noting that the current arrangement, under which the Dangote Refinery imports a substantial portion of its crude feedstock, undermines the refinery’s potential to stabilise local fuel prices explained that reliance on imported crude effectively ties domestic refining operations to international pricing dynamics, thereby limiting the benefits of local production.
“Dangote Refinery imports most of its crude, hence it is exposed to the effects of the ongoing crisis in the Middle East,” he said. “If the refinery gets direct crude supply from the NNPC, it will strengthen the country’s long-term energy diversification strategy and reduce exposure to international supply shocks.”
The NAJA chairman further noted that Nigeria’s continued dependence on imported refined petroleum products remains a major vulnerability, despite its status as Africa’s largest crude oil producer. He described the situation as economically unsustainable, particularly at a time when global uncertainties are driving up energy costs.
“If Nigeria’s major refineries, including Dangote, receive crude locally and transact in naira, the country will reduce its vulnerability to global market disruptions. It will also help stabilise the downstream petroleum sector,” he added.
While acknowledging the potential of the CNG programme to reduce dependence on petrol over time, NAJA insisted that the backbone of Nigeria’s energy strategy must remain anchored in efficient domestic refining. The association warned that failure to address crude supply constraints could undermine ongoing efforts to reform the sector.
“CNG is a good transition policy for transportation, but the backbone of Nigeria’s fuel supply must still come from efficient domestic refining,” Opara said.
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FG Advances $20bn Nigeria-Europe Gas Pipeline Plan

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The Federal Government said it has progressed in its plan on the proposed transcontinental gas pipeline aimed at delivering its vast natural gas to European markets.
The proposed pipeline, still at an early development stage, is being advanced by a consortium of global industry players and would be subject to extensive technical, commercial, and regulatory processes.
Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, who spoke alongside key industry stakeholders, during discussions on the proposed pipeline, at a meeting in London, United Kingdom, described the engagement as both timely and historic, adding that Nigeria is poised to attract investors into its gas sector.
In his words “Nigeria is set for investors to take advantage of this natural gas. The Petroleum Industry Act and the executive orders by Mr President for the petroleum sector have set a conducive environment to attract investments to the sector.
“We must be intentional in the utilisation of our resources. So long as we have these reserves, we must take advantage of them and better the lives of those in the region,” Ekpo said.
The minister further noted that, with appropriate financial backing in place, he sees no obstacle to the project coming to fruition.
In a statement signed by the Spokesperson to the minister, Louis Ibah, Ekpo noted that the move is aimed at strengthening energy security and unlocking long-term economic value.
The proposed pipeline, described as a transformative gas corridor, is designed to transport up to 30 billion cubic metres of gas annually from Nigeria’s southern reserves through Chad and Libya, before extending subsea to Sicily, Italy, and into the broader European market.
According to the statement, stakeholders expressed optimism that the proposed pipeline project would redefine Nigeria’s role in the global energy market while deepening ties with Europe.
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