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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

Global Energy Crisis Is Reviving Green Hydrogen

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The global energy crisis has reshaped global energy priorities seemingly overnight. The Strait of Hormuz has been closed to virtually all commercial traffic for well over a month now, severely restricting global flows of oil and gas. As a result, global energy prices have skyrocketed, and supplies have tightened, pushing many countries to explore alternative energy pathways in a big hurry. This has led to an unfortunate resurgence of coal-fired power, especially in Asia – but it is also set to supercharge the clean energy industry on a global scale. And one of the unlikely benefactors of this groundswell of new investment may be the green hydrogen industry.
China, the world’s top hydrogen producer, is planning to ramp up production of hydrogen, and especially green hydrogen, more quickly than previously planned in order to shore up its energy security as import-dependent Asian markets are rocked by skyrocketing oil and gas prices. China’s National Energy Administration (NEA) has referred to hydrogen as a “strategic lever” for national energy autonomy and resilience, and has pledged to accelerate the development of the domestic sector accordingly.
China’s 15th five-year plan, released last month, flagged hydrogen as a “future industry.” But, apparently, the future is now. According to a recent report from the South China Morning Post, the rhetoric around hydrogen coming out of China signals a shift away from research and toward rapid practical development of the sector.
Last year, the NEA earmarked 41 projects in nine regions across the country to lead hydrogen pilot projects all along the value chain “from production and transport to storage and application.” Now, leadership is pushing to bring those projects out of demo phases and into industrial applications as quickly as possible.
European leaders, too, are pivoting to embrace green hydrogen production with renewed enthusiasm. Earlier this month, ministers from Austria, Germany, the Netherlands, Poland, and Spain petitioned the European Union to loosen production regulations to encourage investment into the sector. And Italy successfully approved a €6 billion state aid plan to support renewable hydrogen.
Even the United States is getting on board. This week, the Trump administration instructed the Department of Energy to save $5 billion worth of hydrogen hubs that were slated for closure. The hydrogen projects – though not green hydrogen ventures – were funded under the Biden administration in order to promote cleaner-burning fuel sources.
Hydrogen could potentially be a critical pathway for decarbonization, as it combusts at high heat like fossil fuels. But, unlike fossil fuels, when it burns, it leaves behind nothing but water vapor. This could make it indispensable for the decarbonization of hard-to-abate sectors like steelmaking and shipping. However, the vast majority of commercial hydrogen is made with fossil fuels. Green hydrogen, by comparison, is made using renewable energies.
But while hydrogen, and especially green hydrogen, could be a key part of the global clean energy transition, research and development in the sector had been cooling for years, as commercial and cost-effective green hydrogen production methods largely failed to materialize. “Even if production costs decrease in line with predictions, storage and distribution costs will prevent hydrogen from being cost-competitive in many sectors,” Roxana Shafiee, a postdoctoral fellow at the Harvard University Center for the Environment, told The Harvard Gazette in 2024. Shafiee led a study that found cause to believe “that the opportunities for hydrogen may be narrower than previously thought.”
But the economics of energy are changing as we speak, and the global hydrogen market is likely about to see a windfall as the world rushes to replace geopolitically risky fossil fuels, which have become prohibitively expensive overnight. Clearly, global leaders are already reembracing the fledgling sector as part of an all-of-the-above approach to energy security and independence. While hydrogen may not be a silver bullet solution, it could be a critical part of a more diverse and therefore more resilient global energy landscape going forward.
By Haley Zaremba
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Oil & Energy

PETAN Tasks Indigenous Oil Firms On Investments Attraction    … Global Engagement Sustenance

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The Petroleum Technology Association of Nigeria (PETAN) has urged indigenous oil and gas companies to deepen global engagement and attract investment.
The Association urged intending participants to leverage the forthcoming 2026 Offshore Technology Conference (OTC) in the U.S. to expand their access to new technologies and partnerships.
PETAN said its participation at the global event would be driven by a deliberate strategy to position Nigerian firms as competitive players within the international energy value chain.
In a statement issued  by the Association’s Publicity Secretary, Dr Joan Faluyi, In Lagos, at the weekend,  PETAN would anchor its activities at the Nigerian Pavilion, with the theme: “Africa’s Energy Transformation: Scaling Investment, Technology, and Local Capacity for Sustainable Growth”.
Faluyi noted that the conference, scheduled for May 4 to May 7 in Houston, Texas, remained a leading platform for offshore energy dialogue, partnerships and innovation.
According to her, PETAN’s participation goes beyond routine attendance and reflects a focused effort to strengthen Nigeria’s visibility and influence in global energy discussions.
“At OTC 2026, PETAN is returning with stronger alignment and a clearer objective, to ensure Nigerian companies are not just present, but actively engaged and recognised as credible global partners,” she said.
Faluyi explained that the association had consistently showcased the capabilities of indigenous oil and gas service providers at previous editions of the conference, reinforcing their capacity to compete internationally.
She added that the Nigerian Pavilion would serve as a strategic hub for investment discussions, technical exhibitions and direct engagement with global stakeholders.
The association is also scheduled to participate in key engagements, including the African Energy Forum, the NCDMB–OEM Investment Forum and the PETAN Golf Tournament slated for May 7 at Quail Valley Golf Course, Texas.
Faluyi described OTC as a critical gateway for Nigerian companies seeking international opportunities, noting that visibility and engagement at the event often translate into commercial partnerships.
“In an increasingly competitive energy landscape, securing a seat at the global table is essential. Through sustained participation, PETAN continues to assert Nigeria’s place in that conversation,” she said.
Also speaking, PETAN Chairman, Mr Wole Ogunsanya, said the Association’s focus was to ensure that indigenous capacity is fully integrated into global energy decision-making processes.
“We have seen firsthand how global energy decisions are shaped at OTC. This year, we are returning to ensure indigenous Nigerian capacity is not just present but recognised, engaged and heard.
“We are taking our businesses to the table where real partnerships are formed,” he said.
Faluyi added that under Ogunsanya’s leadership, PETAN was prioritising strategic positioning to ensure Nigerian companies are not only visible but considered credible partners in major international energy projects.
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Oil & Energy

Solar Panels Imports Ban: Experts Recommend Phase -out Approach 

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Stakeholders in Nigeria’s energy sector have warned that an abrupt restriction on solar panels imports would undermine electricity access.
The experts called for a gradual phase-out of imports over several years rather than an outright ban.
Recall that the federal government had announced plans to halt solar panel imports after investing more than N200 billion to encourage domestic production.
Speaking at the Solar Power Media Training, in Abuja, last week, the Campaign Director, Secure Energy Project (SEP), Joseph Ibrahim, said stakeholders support the goal of building local manufacturing capacity but cautioned against sudden policy shifts.
“Let me be clear, we wholeheartedly support local manufacturing of solar panels”.
“We want to see factories in our states, jobs for our youth, and a supply chain that begins and ends on our soil”, he stated.
Ibrahim insisted that the most effective path forward is a carefully managed roadmap implemented over three to five years to give investors and workers time to adjust.
“If we rush this, we risk making solar power too expensive for the millions who currently rely on it for survival.
“By taking a phased approach, we allow time for investors to build their plants, for our workers to learn specialised skills, and for our economy to adjust without losing power”, he said.
The SEP director said policy stability, access to financing, and strict quality standards are essential to building a sustainable local solar manufacturing industry.
“To make local manufacturing a reality, we don’t just need new laws; we need an enabling environment. This means stability — policies that don’t change with the wind,” he said.
Also speaking, Tosin Asonibare,  said renewable energy has become a critical solution to Nigeria’s persistent electricity supply challenges.
He cited findings by the Global Initiative for Food Security and Ecosystem Preservation, indicating that many Nigerians remain unaware of the proposed import restrictions and their potential implications.
According to him, respondents in the report largely favoured a phased ban supported by incentives for importing raw materials needed for local production.
“The report also shows that infrastructure for locally manufactured panels is not fully available, so there is need for foreign direct investment improvement in government policy.
“So that the local manufacturers and assembling companies can have higher capacity to meet demand. If that is not done, the price of solar panels will go up”, he said.
He warned that affordability could become a major concern for consumers if restrictions are implemented without adequate preparation.
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