Oil
NUPENG threatens strike over dispute with oil giants
LAGOS – Nigeria Union of Petroleum and Natural Gas Workers, NUPENG, at the weekend issued a 14-day strike notice to the Federal Government over disputes with Shell Petroleum Development Company, SPDC, Chevron Nigeria Limited and Agip Oil Company.
At a briefing after its Central Working Committee, CWC, President of NUPENG, Achese Igwe, threatened that if before the expiration of the ultimatum, the government did not summon stakeholders’ national conference on Oil and Gas to address among others, labour issues in the sector, the union would declare an indefinite nationwide strike.
NUPENG lamented the worsening unfair labour practices by multinational oil companies operating in the country and singled out SPDC, Chevron and Agip Oil, for inflicting inhuman treatment on Nigerians.
It contended that if the agreement reached with the multinational companies at a meeting called by the Minister of Labour and Productivity, Chief Emeka Wogu, in May 2012, was implemented, these issues would have been resolved.
Igwe accused Agip Oil of terminating appointment of 93 contract workers that had worked for between 25 and 35 years, without benefits despite directive by the Ministry of Labour and Productivity.
He also accused the oil giants of promoting 96 workers who have spent over 15 years as contract workers as NUPENG members to Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, contract staff instead of converting them to full time workers.
Igwe accused Chevron of not only converting workers from contract labour to service labour and refusing them collective bargaining agreement or allowing them to join the union, while he accused SPDC of refusing to have Collective Bargaining Agreement, CBA, with the workers and denying them the right to join union, among others.
According to him, contract staff of Agip were presently on strike in Port Harcourt and if the issue was not resolved as soon as possible, it would degenerate into national strike, saying “we can no longer fold our arms and allow fellow Nigerians to be enslaved in their country.”
He said : “Before now, Chevron had what was called the big six contractors paying over 1800 workers. Some of the workers had worked for over 30 years and were unionized. Suddenly, Chevron terminated their appointments and said it was rolling them over. Before we knew what was happening, Chevron balkanized the six contractors into 16 contractors and brought back these workers under service labour, refusing them to be unionized and denying them other rights. Under the service labour, their jobs are no longer safe, meaning they can be sacked any day without notice.
For Agip, 93 contract workers were sacked by Agip without paying them terminal benefits. These workers were interviewed and employed by Agip and handed over to contractors to be paying them. Some of them had served the company for over 30 years. When the issue was reported to the Ministry of Labour in Port Harcourt, Agip was directed to pay their terminal benefits.
As we speak, it has refused. Apart from that, Chevron also promoted 96 contract workers who were NUPENG members to PENGASSAN contract staff instead of converting them to permanent staff having spent over 15 years as contract workers. Presently, the contract staff are on strike, and any moment from now, it will snowball into a nationwide strike. We are giving the Federal Government, the Ministry of Petroleum, the National Assembly among other well meaning Nigerians and groups , a 14-day ultimatum to intervene and summon an all embracing stakeholders national conference to address all labour issues in the industry failing which, we will declare an indefinite nationwide strike.”
In a strategic move to revitalize Nigeria’s oil and gas sector, the Federal Government has unveiled two key fiscal incentives aimed at attracting investment and enhancing energy security.
The announcement was made by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy on Wednesday.
The first initiative, the Value Added Tax (VAT) Modification Order 2024, introduces critical exemptions for essential energy products and infrastructure, including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment.
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These exemptions are designed to reduce living costs for Nigerians, promote energy security, and accelerate the transition to cleaner energy alternatives.
The second initiative, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production, offers new tax relief options for deep offshore exploration projects.
This measure aims to position Nigeria’s deep offshore basin as a premier destination for international oil and gas investments, boosting the country’s appeal to foreign investors.
These reforms are part of a broader set of policy initiatives, known as Policy Directives 40-42, endorsed by President Bola Ahmed Tinubu.
The directives reflect the administration’s commitment to fostering sustainable development in the energy sector and enhancing Nigeria’s competitive edge in the global oil and gas market.
By Yemie Adeoye
NIGERIA’s President Bola Tinubu has announced that the protracted ExxonMobil-Seplat upstream oil divestment will be formally approved by the Minister of petroleum within a matter of days, just as he announced his government’s intention to expand the Compress natural Gas, CNG buses initiative.
The President who stated this during his Independence day nationwide broadcast stated that the move is in line with his administration’s commitment to free enterprise, free entry and free exit in investments which is the hallmark of his administration investment policy.
“Fellow compatriots, our administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of our regulatory processes. This principle guides the divestment transactions in our upstream petroleum sector, where we are committed to changing the fortune positively. As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector.”
The President also seized the opportunity to plead with Nigerians to be patient with his administration’s reform policies. “As your President, I assure you that we are committed to finding sustainable solutions to alleviate the suffering of our citizens. Once again, I plead for your patience as the reforms we are implementing show positive signs, and we are beginning to see light at the end of the tunnel”.
“Our energy transition programme is on course. We are expanding the adoption of the Presidential Initiative on Compressed Natural Gas for mass transit with private sector players. The Federal Government is ready to assist the thirty-six States and FCT in acquiring CNG buses for cheaper public transportation.
Fellow Nigerians, while we are working to stabilise the economy and secure the country, we also seek to foster national unity and build social harmony and cohesion. Our economy can only thrive when there is peace”. he enthused.
As part of the administration’s push to improve Ease of Doing Business (EoDB), Nigeria’s Vice President Kashim Shettima has expressed support for ExxonMobil’s plan to invest $10 billion in the country’s deep-water oil sector.
Speaking on Wednesday, September 25, 2024, during a meeting with ExxonMobil executives at the 79th United Nations General Assembly (UNGA) in New York, Shettima called the investment “a clear testament to the administration’s economic reforms and investor-friendly policies.”
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This announcement follows news that international maritime company DP World intends to develop a multibillion-dollar port project in Nigeria.
Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications, shared the development in a statement on Wednesday. He quoted Shettima as saying: “ExxonMobil’s potential investment aligns with the vision of President Bola Ahmed Tinubu’s administration for a more investment-friendly Nigeria.
We are committed to fostering an environment that supports such transformative projects.”Shettima also discussed the administration’s broader efforts to improve the ease of doing business, highlighting the “Renewed Hope Agenda,” which aims to simplify bureaucratic processes, enhance transparency, and offer fiscal incentives to attract global investors.
“Our administration has taken bold steps to unify the exchange rate, remove fuel subsidies, and implement tax reforms. These measures, though challenging in the short term, are intended to create a stable and predictable business environment in the long term,” he added.
On the oil and gas sector, Shettima mentioned that the government is revising the fiscal framework for deep-water operations to attract investment while ensuring fair returns for the Nigerian people.
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