The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has paused its strike across Mobil Producing Nigeria Unlimited (MPNU) and Esso Exploration and Production Nigeria Limited (EEPNL) facilities.
According to a statement by the Nigerian National Petroleum Company Limited (NNPCL), high-level mediation between the NNPCL leadership and PENGASSAN resulted in the suspension of the industrial action.
“The industrial action across all Mobil Producing Nigeria Unlimited (MPNU) and Esso Exploration and Production Nigeria Limited (EEPNL) facilities which commenced on 13th April 2023, effectively constraining 300,000 barrels of oil production daily (BOPD), as well as export activities forced Mobil to declare a force majeure across all their locations, has finally been called off by PENGASSAN,” NNPCL said in a statement.
According to the company, Group Chief Executive Officer Mele Kyari led mediation efforts between the union and Mobil through a series of meetings and engagements in order to achieve an immediate and unconditional return to work as well as the restart of production and export activities across all Mobil locations in Nigeria.
“At a tripartite meeting in Abuja on Wednesday, 26th April 2023, between the leadership of Mobil, PENGASSAN led by the National President of the Union, Comrade Festus Osifo, and NNPC Ltd, at the instance of Mr Kyari, the Union’s grievances were holistically addressed and firm commitments were put in place to avoid a repeat of the regrettable situation.
“Industrial relations broke down at Mobil as a result of the 2023 collective bargaining agreement stalemate and proposed changes to the rota schedule of operations staff,” it said.
According to the statement, the NNPCL leadership persuaded Mobil and the Union to change their positions during the mediation in order to advance the interests of all parties and the federation.
“A pay adjustment acceptable to the union and within the threshold of Mobil was collectively agreed upon and signed off, while both parties have also agreed to put together a working team that will have a 5-month timeline to review the proposals for a possible change in rota schedule for operations staff and parameters for implementation,” it added
Mr. Kyari also urged the union to always look into other conflict resolution options as opposed to resorting to strike activities, which have repercussions that go far beyond the operations of the enterprise at issue.
According to NNPCL, the national crude oil output recovered from an all-time low of less than one million barrels per day in July 2022 to more than 1.67 million barrels per day in March 2023 before the industrial action started.
“With NNPC Ltd asserting its industry leadership and the current sustained efforts at curbing production losses, Nigeria’s crude oil production output is poised to hit 1.8 million barrels per day before the end of the year. An improved production output implies significant economic benefits for the Country and all stakeholders,” it said.
