The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has issued a stern warning of a potential shutdown of its members in offices and oil fields in response to the acquisition of Eni Nigeria and Nigerian Agip Oil Company Limited by Oando Plc.
Eyong Survival, the Branch Chairman of Agip Group PENGASSAN in Port Harcourt, Rivers State, made this declaration during a statement in Port Harcourt on Tuesday.
PENGASSAN has voiced strong opposition to Oando’s takeover of these oil companies, citing a lack of consultation or prior notification to the union. They also expressed concern that more than 3,000 indigenous workers could face job losses due to the sale of Eni Nigeria.
Survival revealed that when news of the sale of NAOC JV assets to Oando became public, the union engaged with the company’s management. However, he claimed that the managing director had denied any such plans during their discussions.
He stated, “The Managing Director of Eni Nigeria, Mr. Fabrizio Bolondi, invited the workforce to a meeting on September 4, 2023, and callously informed us that Eni has sold its 20 per cent equity share in NAOC JV, comprising OML 60, 61, 62 & 63, covering parts of Rivers, Delta, Bayelsa, and Imo states to Oando Nigeria Limited, transferring all her assets and liabilities to Oando, without recourse to outstanding financial obligations to the workers, vis-a-vis their employee savings plan, pension, and gratuity.”
Survival emphasized that the union, as the representative of the workers, was not informed in advance of the commencement of the sales agreement.
Furthermore, he noted, “Not long from the date, the union, on hearing rumors of the sales of the assets, held a meeting with the management on July 12, 2023, where the question was put forward to Eni Nigeria Management if they had any plan of selling the NAOC JV assets to Oando or any other company, but the managing director vehemently denied any plan of selling the JV assets.”
Survival also highlighted that the sale of NAOC JV assets to Oando could result in over 3,000 indigenous workers being unemployed as the details of the transaction were not disclosed.
He concluded, “The Union has ordered a total withdrawal of her members from all offices and field locations of the company until a proper agreement is reached with Eni Nigeria and AGIP Group PENGASSAN. By that withdrawal action, gas supply to Indorama has been affected, daily oil production of 30,000 barrels of crude has been suspended, and about 10mscf of LNG gas to NLNG has been cut-off, and about 350MW of Okpai IPP power to the national grid has been shutdown.”