NationalMirror Crude theft: Oil workers give FG 60 days ultimatum CHIDI UGWU AND MESHACK IDEHEN July 5, 2013 . Stakeholders move to forestall strikes Workers in the oil and gas industry yesterday issued a 60-day ultimatum to the Federal Government to ensure adequate security for oil and gas installations, especially the pipelines, in the country. The workers, under the aegis of the Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, and the National Union of Petroleum and Natural Gas Workers, NUPENG, gave the ultimatum following the massive loss of investments, income and jobs, owing to crude oil theft. The unions after their joint National Executive Council, NEC, meeting under the umbrella of NUPENGASSAN in Abuja yesterday said: “In view of the obvious looming danger to the survival of the oil and gas industry and by extension the nation’s economy which has become so endemic, with high sense of responsibility and patriotism, we have resolved to issue the Federal Government of Nigeria, a 60-day ultimatum to effectively and holistically address and find a lasting solution to this massive crude oil theft debacle.” The Presidents of PENGASSAN, Babatunde Ogun, and NUPENG, Igwe Achese, condemned the helplessness of the Federal Government in combating the menace. Achese, who is the Chairman of NUPENGASSAN, noted that the theft had reduced production of the multinational oil firms by over 60 per cent, leading to shortages, shut in, high cost of operation, threats to jobs and discouragement to investments. He alleged that there was a high level collaboration among the security agencies, politicians and highlyplaced individuals in this racket. Ogun, the alternate chairman of the joint body, also noted that the increase in the rate of crude oil theft and pipeline vandalism could be a result of underfunding of the Nigerian Navy and other security agencies saddled with the task of protecting and securing the vital national assets. He, therefore, called on the Federal Government to provide adequate funding and equipment to the security agencies to protect the country’s waterways. The PENGASSAN president stressed that the Federal Government was lacking in the provision of adequate security for oil and gas installations, leading to increase in the cost of production by the international oil companies, IOCs. He said: “Many multinationals are divesting from the nation’s onshore assets due to insecurity, which increase their cost of production. “Shell, Chevron, Addax and Petrobras are divesting and this endangers the jobs of our members in these companies. “Aside from losing their crude and reducing their productions, the oil companies take care of the cost of repairs of pipelines ruptured by crude oil vandals and also take care of the costs of the environmental clean-up caused by these economic saboteurs. All these add up to their cost of production.” Achese called on the government to fight the anomaly headlong in the next two months or the unions would be forced to withdraw its members from oil and gas installations. Meanwhile, stakeholders in the industry have adopted a 12-point resolution aimed at forestalling future strike actions by addressing the issues raised by unions in the petroleum industry. Group General Manager, Community Relations, Nigerian National Petroleum Corporation, NNPC, Ali Baba Mohammed, in a statement noted that the resolutions were adopted in a meeting jointly conveyed by the Ministers of Petroleum Resources, Mrs. Diezani Alison-Madueke and the Minister of Labour and Productivity, Chief Emeka Wogu. NNPC Group Managing Director, Andrew Yakubu; Acting Permanent Secretary, Ministry of Petroleum Resources, Mr. Godwin Onwughalu, and Permanent Secretary, Ministry of Labour and Productivity, Dr. O. Iloh, also attended the meeting in Abuja. Mohammed, in the 12- point communiqué jointly endorsed by representatives of the stakeholders, said that far-reaching decisions were adopted on all the items highlighted by the unions. On pipeline vandalism and oil theft, the forum said that government had set up a committee to x-ray the issues, stressing that PENGASSAN and NUPENG would be informed by relevant government agencies and other security institutions on the progress being made. The statement also noted that government was already dealing with the bad roads in the country, including applying resources from the SURE-P to rehabilitate the roads that were still posing challenges. It was resolved that poor access road to the Port Harcourt Refinery would be captured in the ongoing reconstruction of the East-West road. The statement added that the forum also agreed that the current rehabilitation of the railways be sustained to complement the road network. It was resolved that the unions should submit the list of unfair labour practices to the 13-man committee headed by the Permanent Secretary, Ministry of Petroleum Resources. The statement, however, stated that other transition issues be referred to the NNPC GMD‘s Committee as had been mandated by the Secretary to the Government of the Federation, SGF, for resolutions within two weeks. On the alleged breaches of the guidelines on contract staffing and outsourcing in the oil and gas sector, the unions were advised to make available specific cases on such breaches to the 13-man committee and the Federal Ministry of Labour and Productivity. The stakeholders were, however, unanimous in their resolve that “unionisation is an inalienable right of workers as established by the Constitution of the Federal Republic of Nigeria and the standards of the International Labour Organisation.” It noted that all issues of casualisation, contract staffing outsourcing, contract service and collective bargaining agreements should be referred to the 13-man committee headed by Permanent Secretary, Ministry of Petroleum Resources. The forum also resolved issues of nomenclature/ harmonisation, Petroleum Industry Bill, PIB, pension as well as the National Association of Road Transport Owners, NARTO, petroleum tanker drivers and Federal Inland Revenue Service imbroglio -where FIRS agreed to pay the NARTO members all verified claims within 14-days from July 3, 2013. Mohammed stated that Wogu, who presided over the meeting, said that subsequent stakeholders’ forum would be held jointly with the ministers of petroleum resources, and his colleague in the Labour and Productivity present. The Labour Minister stated that though the Petroleum Minister was away on presidential assignment in Moscow, he had her approval to convene the forum. Achese commended the GMD of NNPC for his fatherly role in ensuring industrial harmony in the sector. “We want to specifically thank Engr. Yakubu for his role in ensuring an end to the strike and in convening this stakeholders’ forum. “Indeed if we continue in this direction, strike will be a forgotten issue in our industry,” he said. Yakubu thanked the unions and other stakeholders for their understanding while assuring the public that the NNPC had enough petroleum products to stabilise the system after the 48 hours strike action by NUPENG. “I want to assure Nigerians once again that we have enough volumes to go round. I can confirm that PPMC depots have commenced loading and we are doing everything possible to normalise the system,” he said. Also present at the forum were NARTO National Deputy President, Chief Ayoola Sadiq, as well as the representative of the IOCs under the Oil Producers Trade Section , OPTS, an arm of the Lagos Chamber of Commerce and Industries
Posted on: Fri, 05 Jul 2013 10:16:41 +0000
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