PENGASSAN Declares Support For Refineries Privatisation

Contrary to the much publicised opposition of the Petroleum and Natural Gas Senior Staff Association Workers to the Federal Government privatisation of the nation’s refineries in this year, the union has debunked such insinuation.

Speaking to The Tide, the Rivers State Chairman of Trade Union Congress (TUC), Comrade Chika Onuegbu said the union was not opposed to the refineries privatisation by the federal government. Onuegbu said the union aims was only to protect the national interest and assets without unnecessary interference by government officials, stressing that stakeholders in oil and gas sector support was required by the government.

He said the union had recommended to the Federal Government to run the refineries in the adopted modified model tailored towards the NLNG model with the NOC holding a substantial minority, core investors/local participation having a working majority, and staff and staff unions of PENGASSAN and NUPENG holding minority shares.

He said the nation’s refineries should be stand-alone entities independent of the proposed NOC, stressing that NOC holds the government shares with the management of each refining company being autonomous and fully responsible for its success and failure.

The union’s National Industrial Relations Officer who is also the State Chairman, Trade Union Congress of Nigeria (TUC) said the refineries should be run more effectively and efficiently with better management in partnership with private investors like the NLNG model.

Onuegbu said effective incentives should be granted to allow for the development of private refineries alongside the existing refineries.

He called for a framework that would articulate and make available, required crude for effective functioning of Local refineries, stressing that there was need  to  or compel IOCs to refine an agreed percentage of crude oil in the country.

He stressed that the union has suggested the need to tie up stream licensing to downstream investment, in addition to private ownership of jetties.

Onuegbu said information of the union disposal indicated that some of federal government officials are interested in the refineries privatisation to sell it to their cohorts and cronies.

He called on the government to protect the nation’s assets and ensure that all related labour issues are amicably resolved before the privatisation of the refineries.

Philip Okparaji