Oil & Energy
Oil Workers And Industrial Action
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
Oil & Energy
Nigeria Loses More Crude Oil Than Some OPEC Members – Nwoko

Nigeria’s losses due to crude oil theft has been said to be more significant than those of some other members of the Organisation of Petroleum Exporting Countries(OPEC).
The Chairman, Senate Ad- hoc Committee on Crude Oil Theft, Senator Ned Nwoko, made this known in an interview with newsmen in Abuja.
Nwoko noted with dismay the detrimental impact of the issue, which, he said include economic damage, environmental destruction, and its impact on host communities.
According to him, the theft was not only weakening the Naira, but also depriving the nation of vital revenue needed for infrastructure, healthcare, education and social development.
The Senator representing Delta North Senatorial District described the scale of the theft as staggering, with reports indicating losses of over 200,000 barrels per day.
Nwoko disclosed that the ad hoc committee on Crude Oil Theft, which he chairs, recently had a two-day public hearing on the rampant theft of crude oil through illegal bunkering, pipeline vandalism, and the systemic gaps in the regulation and surveillance of the nation’s petroleum resources.
According to him, the public hearing was a pivotal step in addressing one of the most pressing challenges facing the nation.
‘’Nigeria loses billions of dollars annually to crude oil theft. This is severely undermining our economy, weakening the Naira and depriving the nation of vital revenue needed for infrastructure, healthcare, education, and social development.
‘’The scale of this theft is staggering, with reports indicating losses of over 200,000 barrels per day more than some OPEC member nations produce.
‘’This criminal enterprise fuels corruption, funds illegal activities and devastates our environment through spills and pollution.
‘’The public hearing was not just another talk shop; it was a decisive platform to uncover the root causes of crude oil theft, bunkering and pipeline vandalism.
‘’It was a platform to evaluate the effectiveness of existing surveillance, monitoring, and enforcement mechanisms; Identify regulatory and legislative gaps that enable these crimes to thrive.
‘’It was also to engage stakeholders, security agencies, host communities, oil companies, regulators, and experts to proffer actionable solutions; and strengthen legal frameworks to ensure stricter penalties and more efficient prosecution of offenders”, he said.
Nwoko noted that Nigeria’s survival depended
Oil & Energy
Tap Into Offshore Oil, Gas Opportunities, SNEPCO Urges Companies

Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) has called on Nigerian companies to position themselves strategically to take full advantage of the growing opportunities in upcoming offshore and shallow water oil and gas projects.
The Managing Director, SNEPCO, Ronald Adams, made the call at the 5th Nigerian Oil and Gas Opportunity Fair (NOGOF) Conference, held in Yenagoa, Bayelsa State, last Thursday.
Adams highlighted the major projects, including Bonga Southwest Aparo, Bonga North, and the Bonga Main Life Extension, as key areas where Nigerian businesses can grow their capacity and increase their involvement.
“Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) says Nigerian companies have a lot to benefit if they are prepared to take advantage of more opportunities in its offshore and shallow water oil and gas projects.
“Projects such as Bonga Southwest Aparo, Bonga North and Bonga Main Life Extension could grow Nigerian businesses and improve their expertise if they applied themselves seriously to executing higher value contracts”, Adams stated.
Adams noted that SNEPCo pioneered Nigeria’s deepwater oil exploration with the Bonga development and has since played a key role in growing local industry capacity.
He emphasized that Nigerian businesses could expand in key areas like logistics, drilling, and the construction of vital equipment such as subsea systems, mooring units, and gas processing facilities.
The SNEPCO boss explained that since production began at the Bonga field in 2005, SNEPCo has worked closely with Nigerian contractors to build systems and develop a skilled workforce capable of delivering projects safely, on time, and within budget both in Nigeria and across West Africa.
According to him, this long-term support has enabled local firms to take on key roles in managing the Bonga Floating, Production, Storage and Offloading (FPSO) vessel, which reached a major milestone by producing its one-billion barrel of oil on February 3, 2023.
Oil & Energy
Administrator Assures Community Of Improved Power Supply

The Emohua Local Government Area Administrator, Franklin Ajinwo, has pledged to improve electricity distribution in Oduoha Ogbakiri and its environs.
Ajinwo made the pledge recently while playing host in a courtesy visit to the Oduoha Ogbakiri Wezina Council of Chiefs, in his office in Rumuakunde.
He stated that arrangements are underway to enhance available power, reduce frequent outages, and promote steady electricity supply.
The move, he said, was aimed at boosting small and medium-scale businesses in the area.
“The essence of power is not just to have light at night. It’s for those who can use it to enhance their businesses”, he said.
The Administrator, who commended the peaceful nature of Ogbakiri people, urged the Chiefs to continue in promoting peace and stability, saying “meaningful development can only thrive in a peaceful environment”.
He also charged the Chiefs to protect existing infrastructure while promising to address the challenges faced by the community.
Earlier, the Oduoha Ogbakiri Wezina Council of Chiefs, led by HRH Eze Goodluck Mekwa Eleni Ekenta XV, expressed gratitude to the Administrator over his appointment and pledged their support to his administration.
The chiefs highlighted challenges facing the community to include incessant power outage, need for new transformers, and the completion of Community Secondary School, Oduoha.
The visit underscored the community’s expectations from the LGA administration.
With Ajinwo’s assurance of enhancing electricity distribution and promoting development, the people of Oduoha Ogbakiri said they look forward to a brighter future.
By: King Onunwor
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