Tuesday, November 29, 2022
Home EXPLORATIONS Nigeria loses 22,000bpd as Addax workers begin strike

Nigeria loses 22,000bpd as Addax workers begin strike

Nigeria’s oil production may suffer further decline of 22,000 barrel of oil per day, as employees of Addax Petroleum Development Nigeria have embarked on strike over anti-labour practices.

Addax, owned by China’s Sinopec Group, has four Oil Mining Licences, OML 123, 124, 126 and 137, operating the assets in Production Sharing Contract (PSC) with the Nigerian National Petroleum Corporation (NNPC) before its transformation to a limited liability company.

The company has about 324 Nigerian employees, which include the 141 permanent staff and 183 contract employees.

According to the striking workers, who are members of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Addax management refused to engage them on labour related issues after the announcement of the revocation of its licences by the Federal Government.

The workers threatened to shut all the company’s operations including oil wells, valves crude lifting and export terminals operating by Addax if the company refuse to engage them, saying that all attempts to get the Management to the negotiation table failed as it ignored them.

Impeccable sources among the workers revealed that sequel to the notification by the APN Management informing its employees on the withdrawal of operating licences by the NNPC in a town hall meeting, both parties met and reach a financial term of exit settlement for all the workers.

Our correspondent gathered that it was agreed that the financial exit settlement will be executed at the expiration of Addax Petroleum Nigeria’s PSC agreement for OML 123 and 124 by July 1, 2022.

“Addax Management has so far rebuffed our call for the execution of the financial exit settlement and other employees ‘related issues.

Senior Assistant General Secretary, Lagos Zone PENGASSAN, Comrade Babatunde Oke confirmed that the strike was embarked upon by our members due to the Management’s refusal to engage our Association on the financial settlement earlier agreed on.

One of the workers who spoke to our correspondent on condition of anonymity, explained that the workers have waited patiently for the Management “trying to understand its plights but it is like they are insensitive to our own problems. Many letters have been written asking for a meeting but the Management refused to meet them.”

The striking workers claimed that the Federal Government has done everything possible through the National Petroleum Investment Management Services (NAPIMS) to ensure issues are settled amicably but Addax Management is frustrating every move by NAPIMS and other stakeholders to resolve the issue.

It would be recalled that Addax has been enmeshed in revocation of licences by the then Department of Petroleum Resources (DPR) in March 2021. The regulatory agency claimed that the licences were revoked due to refusal of Addax Petroleum to fully develop the affected assets, alleging that this action has robbed the government of revenue that could have been generated from assets.

DPR, now Nigeria Upstream Petroleum Regulatory Commission, claimed that the average reserve profile of the assets showed that oil reserves have remained essentially flat, as Addax never made efforts to grow the reserves, adding that crude oil in all three producing assets had been declining over the years due to inadequate investment by the company.

It stated that the entire OML 137 holds about five trillion cubic metres in two key reserves, but the company failed to develop this asset in line with the government’s gas revolution policy, describing this as “economic sabotage.”

The revocation was recently confirmed by the current Chief Executive Officer of NUPRC, Engineer Gbenga Komolafe, who reiterated that Addax refused to renew its licences and therefore those licences stand revoked.

RELATED ARTICLES

UK offshore oil workers down tools over pay dispute

his comes two weeks after Unite the union served a notice of action to Petrofac. In an update on Wednesday, the union disclosed that the strike is going ahead and outlined that its members, which are working for Petrofac on Repsol’s platforms, will take part in industrial action starting on 16 November 2022 with a continuous overtime ban and 48-hour stoppage taking place on 16 and 17 November.

Osinbajo visits Shell stand at NESG in Abuja

Osinbajo visits Shell stand at the 28th Nigeria Economic Summit in Abuja

Oil explorationists, policy makers brainstorm in Lagos as NAPE holds 40th Annual Conference

The nation has an Energy transition plan to get us to net zero greenhouse gas emission by 2060. However, there are many factors that need to be considered and appropriately addressed in the nation’s shift to its sustainable energy future.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

TCN adds 98MW to grid; energizes 2x60mva 132/33kv Gwarinpa Sub-station

According to a statement, the 132kV transmission sub-station is one of the five sub-station projects comprising the Abuja Ring Projects, funded by Agence Francais de Developpment (AFD).

NDPHC wins Power project of the year award

The Power Sector Awards is an initiative designed to recognize, celebrate and promote public and private sector organizations and individuals in the Nigerian Electricity Supply Industry (NESI).  

TCN delivers 22 Power Transformers, other Transmission Equipment to Lagos store

The equipment described as the highest of such in the company’s history, comprise of 22 power transformers, haulage trucks, transmission switchyard spare parts, 45No. earthing transformers, Suspension Clamps, Vibration Dampers, Armor Rods, Circuit Breakers, Current transformer, Voltage transformers, 100tons Crane truck heads

Baobab+ celebrates two years in Nigeria distributing Solar Home Systems

Speaking on the anniversary, the Chief Executive Officer, Baobab+, Kolawole Osinowo, the company has equipped thousands of households and served several beneficiaries with its off-grid energy solutions in the past 2 years.

Recent Comments