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Tag: Mobil

  • Transfer of Mobil shares to NIPCO nearing completion, says MD

    Transfer of Mobil shares to NIPCO nearing completion, says MD

    The transfer of shares and other liabilities of Mobil Oil Nigeria (MON) Plc to the Nigerian Independent Petroleum Company (NIPCo) Plc will soon be completed, NIPCO’s Managing Director Mr. Venkataraman Venkatapathy has said.

    Venkatapathy told The Nation, that NIPCO’s acquisition  of the Mobil shares would bring economy of scale to the firm, benefit Nigerians and the economy. NIPCo is an efficient oil trading and distribution company.

    NIPCO’s acquisition of mobil, he said, has expanded the Group, adding that the firm is adding new businesses such as the lubricant production unit to the system to make it bigger.

    On whether he foresees more acquisitions or mergers in the downstream sub-sector, the NIPCo chief said he could not say because the economy is going through difficult times.

    He said: “The acquisition of Mobil shares is good for the company. There is a synergy between NIPCo and Mobil Oil Nigeria in the sense that both are engaged in oil distribution, so there is economy of scale. Nigerians and the nation will benefit from the acquisition because NIPCo is efficient in the industry.

    “We are also bringing a new business into the system – the lubricant business. The Group is becoming bigger not just because of the acquisition, but the additional new business areas. The transition is ongoing and will soon be completed and we will do the announcement at the right time.”

    In October, last year, NIPCo bought ExxonMobil’s 60 per cent equity in Mobil Oil Plc and added to the seven per cent equity it previously held in Mobil Oil, raising its total equity holding in Mobil Oil to 67 per cent.

    The Manager, Media and Communications, Mobil Producing Nigeria Unlimited, Mr. Oge Udeagha, told The Nation that the transaction was transparently carried out. He also stated that the two firms reached far-reaching agreements, especially in protecting the welfare of Mobil Oil Plc workers that would be inherited by NIPCo, adding that the divestment was in line with ExxonMobil’s business plan.

    According to him, the choice of NIPCO was made on a commercial basis, considering price, transaction terms, long term strategic perspective and a number of other factors, including its commitment to Mobil Oil Nigeria’s employees.

    He noted that ExxonMobil carefully evaluated opportunities across a wide range of market conditions and only advance projects generating long-term shareholder value. “Following these assessments, we sometimes find that it makes greater business sense to divest when the businesses are estimated to have higher value to others.

    “This decision is in no way a reflection of our view on the local business climate, financial results or the workforce,” he added.

    Udeagha said: “ExxonMobil has reached an agreement with the Nigerian Independent Petroleum Company for the sale of its 60 percent share in its downstream Mobil Oil Nigeria affiliate. Mobil Oil Nigeria comprised 250 company-owned and dealer-owned Mobil-branded retail stations, a fuel terminal and a lubricant plant in Apapa, and interests in two aviation fuel joint ventures in Lagos.

    “We have also reached accompanying agreements for the continued import, blending and distribution of Mobil-branded lubricants and marketing of Mobil-branded fuel. These agreements will ensure the continued presence of the Mobil brand in Nigeria and position the brand for future growth.

    “Subject to regulatory approval, change-in-control is anticipated by mid-2017. The Mobil Oil Nigeria Board, Ministry of Petroleum, Nigeria Stock Exchange and other relevant statutory agencies have been notified of the transaction.

    “This share-sale agreement does not involve ExxonMobil’s upstream production operations in Nigeria or lubricant supply to Caterpillar dealer, Mantrac Nigeria. ExxonMobil regularly evaluates its global portfolio of businesses and opportunities for growth, restructuring or divestment depending on fit with strategic business objectives. Mobil Oil Nigeria will be renamed after the sale is completed. It is expected that Mobil Oil Nigeria’s employees will continue to be employed following change-in-control.”

  • Why we sponsor quiz contests, by Mobil

    Mobil Producing Nigeria (MPN) has said that it sponsors quiz competitions amongst secondary schools in Bonny, Rivers State, because “it is a key strategy for enhancing reading and learning culture amongst students in the locality.”

    The General Manager, Public and Government Affairs of MPN, Mr Paul Arinze, who said this during the seventh edition of the competition organised for secondary schools in Bonny by NNPC/Mobil Joint Venture, expressed hope that the programme would continue to provide a platform for interaction and healthy competition amongst the students.

    Represented by the Bonny River Terminal Superintendent, Mr Taiye Gbenjo, Arinze said the competition would help to address critical educational gap that was highlighted during the recently held Pan-Bonny Conference on Sustainable Development, where education on the island is said to be on the decline.

    The Chairman of the occasion, Se-Alabo Reginald Abbey Hart, who is also the former Chairman of Bonny Chiefs Council, lauded MPN for sponsoring the competition and expressed happiness that education is beginning to pick up in the locality.

    Also speaking, the Bishop of Bonny Diocese of Christ Army Church of Nigeria, Rt Rev Dappa Abbe commended MPN for sponsoring the competition and the students for showing their academic mettle.

    The facilitator of Recreasport Consult, Dr Jude Ben-Stowe whose company organized the competition on behalf of NNPC/Mobil, explained that “the essence of the competition is not for the schools to win essentially but to encourage reading habit among students and consequently bring out the potentials in them to contribute positively to the development of education in Bonny Kingdom.”

    At the end of the exercise, Elizabeth Chukwumma of Government Girls Secondary School (GGSS), Finima, Bonny won the best student award.

    She scored 30 points while the first runner up, Edwin LongJohn of Bonny National Grammar School (BNGS), Bonny had 26 points and was followed by Jonathan Jumbo of Lucille Education Centre who scored 24 points.

    In the highly competitive finals among seven secondary schools in Bonny, Chukwuma’s school, GGSS, Finima also came tops in all the three rounds with 32 points to defeat Kings and Queens Secondary School which scored 21 points.

    BNGS won in all three rounds with 28 points to defeat Lucille Education Centre that had 18 points.

    While Chukwuma and the two runners up went home with laptops, all the contesting schools won cash prizes of various amounts to enable them provide furniture for their libraries. The top three schools also got trophies, while all participants as well as those who answered questions from the audience got certificates.

     

  • Nipco shareholders okay guaranty for $301m Mobil acquisition

    Nipco shareholders okay guaranty for $301m Mobil acquisition

    Shareholders of Nipco PLC have authorised the Board of Directors to stand as a surety and guarantor for the acquisition of 60 per cent majority equity stake in Mobil Oil Nigeria by Nipco Investments Limited, a wholly owned subsidiary of Nipco Plc.

    At the extraordinary general meeting, shareholders praised the acquisition and approved all resolutions tabled before the meeting.

    Nipco had agreed to pay $301 million for the acquisition of ExxonMobil Oil Corporation’s 60 per cent majority equity stake in Mobil Oil Nigeria Plc. The total consideration of $301 million, which is subject to price adjustments for dividends and other factors, is equivalent to N91.88 billion at current official exchange rate of N305.25 per Dollar.

    Under the deal, ExxonMobil will sell its majority equity stake of 60 per cent to Nipco Investments Limited; a wholly-owned subsidiary of Nipco. ExxonMobil will transfer its total shareholding of 216.36 million ordinary shares of 50 kobo each to Nipco Investments Limited for the consideration of $301 million.

    At the meeting, shareholders authorised the board to stand as surety and guarantor for Nipco Investments Limited and also approved the guaranty dated September 26, 2016 given by Nipco for the benefit of ExxonMobil Corporation, USA in connection with the acquisition by Nipco Investments Limited.

    A shareholder, Alhaji Sanni Yau said the acquisition was a demonstration of the capacity of Nipco and its commitments to the Nigerian economy.

    According to him, the fact that Nipco had in the last 12 years focused exclusively on the downstream sector will give it necessary confidence and wherewithal to effectively reposition Mobil Oil Nigeria as an industry leader within the shortest possible time.

    He noted that the confidence reposed in Nipco to put Mobil Oil back as an industry has started to manifest, citing the share price appreciation of more than 55 per cent since the official announcement of the deal by Mobil Oil Nigeria at the Nigerian Stock Exchange (NSE).

    He expressed confidence that Nipco would not only sustain the modest performance of Mobil Oil  but also improve on it as it pursues the company’s vision of being the  first choice company in the hydrocarbon industry to all stakeholders.

    Another shareholder, Alhaji Suleiman Mohammed, noted the historic position of the acquisition as the first of such to be undertaken by an indigenous operator.

    He praised the Board of Nipco for taking such a laudable step which is fast reshaping the landscape of the downstream sector.

    Similarly, another shareholder, Alhaji Musa Felande, said the acquisition would benefit independent fuel marketers who will earn more returns through improved earnings on their shares in Nipco.

    He urged the board and management of the company to consider going into petroleum refinery in the near future.

    In his remarks, Managing Director, Nipco PLC, Mr Venkataraman Venkatapathy said the acquisition is an important synergy and part of a strategy to support Nipco’s continuous growth and expansion in the retail sector of the oil and gas industry.

    Venkatapathy, who stood in for the Chairman of Nipco, Chief Bestman Anekwe, said the company would continue to maintain the Mobil Oil brand at its retail outlets as well as continue to blend and sell Mobil Oil brand of lubricants under blending licence from ExxonMobil.

  • Akwa Ibom community, Mobil bicker over projects

    Akwa Ibom community, Mobil bicker over projects

    The N1.2bn Special Community Assistance Projects in Esit Eket by Mobil Producing Nigeria (MPN) Unlimited is generating tension due to the refusal of the firm to mobilise contractors for the third phase of its milestone plans, writes Kazeem Ibrahym

    Esit Esit Local Government Area, one of the host communities to Mobil Producing Nigeria (MPN) Unlimited in Akwa Ibom State is in turmoil due to the firm’s lack of dedication to the Memorandum of Understanding (MoU) it signed with the community.

    The area, it was learnt, has been devastated by the effects of oil spill resulting from oil and gas exploration activities. As a result, Mobil was to commit the compensation cash of N1.2 billion into communitty development projects in the third phase of its milestone plans.

    Speaking to reporters in Uyo, the state capital, a community leader, Senator Etang Umoyo, decried Mobil’s lack of commitment to the MoU, saying that the firm has reneged in paying the contractors after greater percentage of the job had been done.

    According to him, children in the affected schools now receive lessons under trees as the contractors have abandoned the sites due to failure of Mobil to pay them.

    His words: “Mobil should respect the contract terms with the contractors so that they can return to sites in order not to jeopardise the existing mutual relationship with it.

    “We have no problem with Mobil. They had started some projects in the areas of repair of schools, roads and walls. Now, it is time for children to go back to school and those things are left unattended to. If you go to Esit Eket, you will see the children receiving their lessons under trees.

    “So, we insist that Mobil should meet their payment obligations with contractors so that they can go back to sites and finish those projects in order to create an environment conducive to teaching and learning.

    Some youths wrote a letter to one of the managers, pleading that they should come and do something about the situation. Unfortunately, this was misinterpreted.

    “The General Manager for Public Relations over-reacted and called on the Transition Chairman of Esit Eket Local Government Area to ask the youth to withdraw the letter and apologise to them. As far as I am concerned, that is going overboard which could generate crisis.”

    The Paramount Ruler of Esit Eket, Edidem Ubong Peter Assam 11, appealed to Mobil to mobilise the contractors to return to sites, revealing that pupils in the affected schools have threatened to relocate to his palace for their learning programmes.

    Assam, Chairman of the Council appealed to the youth to toe the line of peace and work harmoniously with MPN towards the actualisation of the community projects.

    Some of the schools visited by Niger Delta Report included Community Secondary School, Akpautong; Qua Iboe Church Primary School, Akpautong; Union Technical College, Ikpa and others in Esit Eket. Works were at advanced stages of completion.

    But the contractors said they would return to complete the project as soon as Mobil fulfils its agreement to release funds for the project.

    Meanwhile, teachers in the affected schools have lamented the deplorable state of education infrastructure, saying such environments were not conducive for the pupils, especially as the May/June West African Senior School Certificate Examination (WASSCE) approaches.

    “Our pupils have been learning under harsh situations because of the non-completion of the facilities for the pupils to prepare well for their forthcoming examinations. The situation on ground is really affecting their studies. The doors are bad and as examinations are approaching, it is going to be difficult for the students”, Friday Akpan, Head of Motor Vehicle Department at the Union Technical College, Ikpa, lamented.

    Also, the Headmaster, Qua Iboe Church Primary School, AkpaUtong, Elder Edet Ekanem, said: “The students have no place to sit and learn.

    “Even my quarter as the headmaster is yet to be completed. If the headmaster’s quarter was ready, it will help me to supervise the students well and watch over the school premises very well instead of coming all the way from my village to the school every day.”

    Also, the Esit Eket Frontline Youths Movement (EEFYM) and Network Advancement Programme for Poverty and Disaster Risks Reduction, in their separate letters to Mobil, had accused the company of refusal to pay the balance of the said money and threatened with an ultimatum of seven days to be conditionally followed by protests by the community youths.

    But, in a letter by Mobil’s General Manager, Public and Government Affairs, Paul Arinze, and addressed to the Chairman, Esit Eket Local Government Area, Iniobong Robinson, the company said despite the present unpleasant business climate in the country, MPN had not reneged on the execution of the Special Community Assistance Projects in the respective communities of Ibeno, EEket, Esit Eket, Onna, Ikot Abasi, Mkpat Enin, Eastern Obolo and Mbo.

    The letter reads: “As you are aware, the delay in the commencement of project activities in Esit Eket, for the most part, was due to internal community disagreements and litigations. As soon as those issues were resolved; (though some fresh cases have again been filed in court), the process for the disbursement of the first milestone was effected, and payment subsequently made.

    “Upon the completion of the first milestone project activities and submission of satisfactory report by the project manager (I.F. Global Services Limited), the second milestone payment was also made. Based on the value of measured work as earlier communicated, the process for the disbursement of the third (half) milestone payment is ongoing.

    “In view of the above, and in compliance with the Resolutions signed by all the parties on December 19, 2013, the NNPC/MPN JV hereby demands an immediate withdrawal of the letters and the issuance of unreserved apologies by the two groups from Esit Eket Local Government Area, as an irreducible minimum condition for the continued execution of the SP II projects in Esit Eket LGA.”

  • Akwa Ibom community, Mobil bicker over projects

    The N1.2bn Special Community Assistance Projects in Esit Eket by Mobil Producing Nigeria (MPN) Unlimited is generating tension due to the refusal of the firm to mobilise contractors for the third phase of its milestone plans, writes Kazeem Ibrahym

    Esit Esit Local Government Area, one of the host communities to Mobil Producing Nigeria (MPN) Unlimited in Akwa Ibom State is in turmoil due to the firm’s lack of dedication to the Memorandum of Understanding (MoU) it signed with the community.

    The area, it was learnt, has been devastated by the effects of oil spill resulting from oil and gas exploration activities. As a result, Mobil was to commit the compensation cash of N1.2 billion into communitty development projects in the third phase of its milestone plans.

    Speaking to reporters in Uyo, the state capital, a community leader, Senator Etang Umoyo, decried Mobil’s lack of commitment to the MoU, saying that the firm has reneged in paying the contractors after greater percentage of the job had been done.

    According to him, children in the affected schools now receive lessons under trees as the contractors have abandoned the sites due to failure of Mobil to pay them.

    His words: “Mobil should respect the contract terms with the contractors so that they can return to sites in order not to jeopardise the existing mutual relationship with it.

    “We have no problem with Mobil. They had started some projects in the areas of repair of schools, roads and walls. Now, it is time for children to go back to school and those things are left unattended to. If you go to Esit Eket, you will see the children receiving their lessons under trees.

    “So, we insist that Mobil should meet their payment obligations with contractors so that they can go back to sites and finish those projects in order to create an environment conducive to teaching and learning.

    Some youths wrote a letter to one of the managers, pleading that they should come and do something about the situation. Unfortunately, this was misinterpreted.

    “The General Manager for Public Relations over-reacted and called on the Transition Chairman of Esit Eket Local Government Area to ask the youth to withdraw the letter and apologise to them. As far as I am concerned, that is going overboard which could generate crisis.”

    The Paramount Ruler of Esit Eket, Edidem Ubong Peter Assam 11, appealed to Mobil to mobilise the contractors to return to sites, revealing that pupils in the affected schools have threatened to relocate to his palace for their learning programmes.

    Assam, Chairman of the Council appealed to the youth to toe the line of peace and work harmoniously with MPN towards the actualisation of the community projects.

    Some of the schools visited by Niger Delta Report included Community Secondary School, Akpautong; Qua Iboe Church Primary School, Akpautong; Union Technical College, Ikpa and others in Esit Eket. Works were at advanced stages of completion.

    But the contractors said they would return to complete the project as soon as Mobil fulfils its agreement to release funds for the project.

    Meanwhile, teachers in the affected schools have lamented the deplorable state of education infrastructure, saying such environments were not conducive for the pupils, especially as the May/June West African Senior School Certificate Examination (WASSCE) approaches.

    “Our pupils have been learning under harsh situations because of the non-completion of the facilities for the pupils to prepare well for their forthcoming examinations. The situation on ground is really affecting their studies. The doors are bad and as examinations are approaching, it is going to be difficult for the students”, Friday Akpan, Head of Motor Vehicle Department at the Union Technical College, Ikpa, lamented.

    Also, the Headmaster, Qua Iboe Church Primary School, AkpaUtong, Elder Edet Ekanem, said: “The students have no place to sit and learn.

    “Even my quarter as the headmaster is yet to be completed. If the headmaster’s quarter was ready, it will help me to supervise the students well and watch over the school premises very well instead of coming all the way from my village to the school every day.”

    Also, the Esit Eket Frontline Youths Movement (EEFYM) and Network Advancement Programme for Poverty and Disaster Risks Reduction, in their separate letters to Mobil, had accused the company of refusal to pay the balance of the said money and threatened with an ultimatum of seven days to be conditionally followed by protests by the community youths.

    But, in a letter by Mobil’s General Manager, Public and Government Affairs, Paul Arinze, and addressed to the Chairman, Esit Eket Local Government Area, Iniobong Robinson, the company said despite the present unpleasant business climate in the country, MPN had not reneged on the execution of the Special Community Assistance Projects in the respective communities of Ibeno, EEket, Esit Eket, Onna, Ikot Abasi, Mkpat Enin, Eastern Obolo and Mbo.

    The letter reads: “As you are aware, the delay in the commencement of project activities in Esit Eket, for the most part, was due to internal community disagreements and litigations. As soon as those issues were resolved; (though some fresh cases have again been filed in court), the process for the disbursement of the first milestone was effected, and payment subsequently made.

    “Upon the completion of the first milestone project activities and submission of satisfactory report by the project manager (I.F. Global Services Limited), the second milestone payment was also made. Based on the value of measured work as earlier communicated, the process for the disbursement of the third (half) milestone payment is ongoing.

    “In view of the above, and in compliance with the Resolutions signed by all the parties on December 19, 2013, the NNPC/MPN JV hereby demands an immediate withdrawal of the letters and the issuance of unreserved apologies by the two groups from Esit Eket Local Government Area, as an irreducible minimum condition for the continued execution of the SP II projects in Esit Eket LGA.”

  • Delayed reforms affect oil business, says Mobil chief

    Chairman and Managing Director, Mobil Oil Nigeria Plc, Mr. Adetunji  Oyebanji has said delayed reforms in the downstream petroleum industry is affecting the growth of the sector.

    Oyebanji spoke at the 38th general meeting of the company in Lagos.

    He said the downstream sector has been facing challenges, which include inadequate products, noting that the operating environment was harsh for operators

    He lamented that the low crude oil price environment affected the profitability of their business while foreign exchange was scarce.

    He said in spite of the harsh economic climate, the company’s earning improved when compared to 2014, while Mobil Oil Nigeria won the award for lubricant company of the year 2015 at the 10th Nigeria Auto Awards.

     

  • Supreme Court decries Mobil’s reluctance to prosecute appeal

    The Supreme Court has decried the reluctance of Mobil Producing Unlimited (MPU) to prosecute an appeal it filed in 2010 against the May 21, 2009 judgment of the Court of Appeal, Calabar.

    The appellate court had held that about 860 Nigerian Mobil workers hired as security guards between 1990 and 1996 were its staff and not officials of the Nigeria Police Force (NPF) as the company claimed.

    A five-man panel of the apex court, led by Justice Suleiman Galadima, noted that the appellant appeared unwilling to prosecute the appeal. It urged Mobil to be certain about what it intends to achieve with the appeal.

    The court’s position was informed by the uncoordinated approach of the appellant’s lawyers and the consistency in the errors they commited in the filing of applications, which often led to adjournments.

    When the case was called on April 25, Mobil’s lawyer, Rowland Obaji sought leave of court for an extension of time to file an appeal and deem the already filed amended appeal as properly filed.

    Justice Galadima drew Obaji’s attention to a wrong prayer in his motion and noted that the court could not amend defective documents for parties.

    Without objection from lawyers to the workers and the police, O. K. Salawu and Sebastian Barth Ozoana, the court struck out Mobil’s motion.

    Justice Galadima noted that similar motions dated September 29 and 30, and December 15, 2015 filed by Mobil had been withdrawn and struck out.

    When asked if he knew when the other motions were earlier struck out, Obaji said he could not recall because the file where it was indicated was with the Senior Advocate leading him in the case.

    “It seems you are not prepared to prosecute this appeal. You should tell us what you intend to do with this appeal. You seem not to be familiar with your appeal and processes filed so far,” Justice Galadima said.

    The court then directed Obaji to file a new motion to regularise the appeal, following which a new date will be issued for hearing.

    Since Mobil lodged the appeal in 2010, it has taken no major steps to ensure its prompt determination. Most adjournments have been at its instance.

    When parties returned to court on June 1, 2015, it was also the unpreparedness of Mobil that foisted an adjournment on the court, prompting the Justice Ibrahim Tanko Muhammad-led five-man bench to impose N100,000 cost on the company and adjourn to December 14.

    On December 14, Mobil’s lawyer, A. O. Wahab attempted to move his client’s application for leave to regularise the appeal, only for Justice Mohammad to, again, notice that the application was incompetent.

    Justice Muhammad also observed that a motion for stay of execution of the judgment, which Wahab said his client filed on February 12, 2010 for stay of execution of the Appeal Court’s judgment was not in the court’s file.

    He consequently ordered the appellant to withdraw the defective application, re-file it on a later date and ensure that all the necessary processes were in the court’s file. Justice Mohammad was however, silent on the return date, prompting lawyer to the workers, Ifeanyi Maduabuchi to draw the court’s attention to the fact that the case was about labour dispute, which requires prompt hearing.

    Maduabuchi said despite the order in the judgment restraining Mobil from dismissing or punishing the workers, it had allegedly sacked some and was subjecting others to unfriendly treatment. He urged the court to intervene and protect the workers.

    The 860 Nigerians were engaged by Mobil as security personnel between 1990 and 1996 to secure its assets in Lagos, Port-Harcourt (Rivers State), Eket and Quo-Ibo in Akwa-Ibom State.

    Dispute arose about their employment status in early year 2000 when about 27 of them in Eket were issued transfer letters by the Nigeria Police Force (NPF), transferring them to Lagos. The 27 rejected the purported transfer on the ground that they were not staff of the Nigeria Police.

    They complained to Mobil, who claimed it had transferred their employment to the Nigeria Police and thus raising the question about whether the company could alter the terms of their employment without their knowledge and consent.

    The workers claimed they were directly employed and paid by the oil company (as reflected in their employment letters tendered in evidence in court); that they were only trained by the police on security operations (under an arrangement between Mobil and the Nigeria Police Force), and that they are entitled to the same benefits as other employees of the oil company.

    On its part, the oil company insists that they should look up to the police for their benefits and other entitlements because it engaged them as supernumerary (SPY) police personnel and not actual staff.

     

     

  • Community tasks Mobil on N1.6b development grant

    The people of Eastern Obolo local government area of Akwa Ibom has called on ExxonMobil to increase the Company’s development grant from the current N250 million to N1.6 billion as it is done for other host communities.

    The people also appealed to the Federal Government to appoint its indigene as the next Managing Director of Niger Delta Development Commission (NDDC).

    The chairman, Eastern Obolo Traditional Rulers Council, Chief Job Job made the appeal at Okoroete, the council headquarters while addressing the press on the plights of the area.

    The monarch, who was flanked by his chiefs in council, spoke through the Community Consultant on Oil Matters to the area, Dr John Ukpatu.

    Job noted that since the establishment of NDDC in 2000, no indigene of Eastern Obolo had been appointed into the board of the commission.

    “Oil was discovered in Eastern Obolo in 1956. Eastern Obolo is host to Shell, Amni International and co-host to ExxonMobil, Total, Conoil Nig. Ltd., and Addax.

    “Nigeria produces 2.2 million barrel of oil per day (bopd) and Akwa Ibom contributes 40 per cent (880, 000 bopd).

    “Out of the 40 per cent from Akwa Ibom, Eastern Obolo contributes 22 per cent (193, 600 bopd),” the monarch said.

    He lamented that Eastern Obolo was the only core oil producing local government area that had not been appointed into NDDC from Akwa Ibom.

    Job alleged that the area had nothing to show for its enormous contributions to the development of Akwa Ibom and Nigeria.

  • Workers accuse Mobil of delaying appeal

    Workers accuse Mobil of delaying appeal

    About 860 members of staff of Mobil Producing Nigeria Unlimited em-ployed between 1990 and 1996 as security personnel have decried the delay in determining an appeal on their employment by the Supreme Court.

    They accused the company of being reluctant to pursue the appeal, yet the court indulges it.

    The staff, led by Okon Jonson and Emmanuel Nwokedi, spoke on December 14, shortly after a five-man panel, headed by Justice Ibrahim Tanko Muhammad adjourned the case indefinitely over Mobil’s failure to file a competent application for leave to regularise its appeal.

    A similar incident occurred when parties were last before the court on June 1, prompting the court to impose a fine of N100,000 against Mobil for its failure to regularise its appeal, a development which the respondents in the appeal have termed delay tactics.

    Mobil employed the 860 Nigerians as security personnel between 1990 and 1996 to secure its assets in Lagos, Port Harcourt (Rivers State), Eket and Quo-Ibo in Akwa Ibom State. Dispute arose about their employment status in early year 2000 when about 27 of them in Eket were issued transfer letters by the Nigeria Police Force (NPF), transferring them to Lagos.

    The 27 rejected the purported transfer on the ground that they were not staff of the Nigeria Police. They complained to Mobil, who claimed it had transferred their employment to the Nigeria Police and thus raising the question about whether the company could alter the terms of their employment without their knowledge and consent.

    They claimed  that they were directly employed and paid by the oil company (as reflected in their employment letters tendered in evidence in court); that they were only trained by the police on security operations (under an arrangement between Mobil and the Nigeria Police Force), and that they are entitled to the same benefits as other employees of the oil company.

    On its part, the oil company insisted that they should look up to the police for their benefits and other entitlements because it engaged them as Supernumerary (SPY) Police personnel and not actual staff.

    When efforts at amicable settlement failed, the staff approached the Federal High Court, Uyo, Akwa-Ibom State in suit: FHC/UY/CS/565/2004. In a judgment delivered on January 24, 2006 by Justice Gladys Olotu (now retired), the plaintiffs’ suit partially succeeded, prompting them to appeal to the Court of Appeal, Calabar, Cross-River State.

    In a unanimous decision by a three-man bench on May 21, 2009, the Appeal Court held in favour of the workers. Justices Theresa Ngolika Orji-Abadua read the lead judgment, which Justices Kumai Bayang Akaahs and Jean Omokri agreed with.

    The appellate court particularly, held that the workers are not staff of the Nigeria Police because “the circumstances, nature, procedure and methods of their employment were not in harmony with the provision of Sections 18, 19, 20 and 21 of the Nigeria Police Act.”

    The court made a perpetual injunction restraining Mobil from “dismissing or punishing the plaintiffs/appellants” on account of the dispute between them which arose from their refusal to accept their transfer by the NPF.

  • Why petroleum investment is low, by Mobil boss

    Mobil Oil has identi-fied the refusal of banks to give loans to fund critical and sustainable projects, growing cost of operation in the petroleum sector and high exchange rate as factors responsible for the low investment in the nation’s oil and gas sector.

    Its Managing Director, Mr Tunji Oyebanji, said investment in the sector has dwindled in recent times, following the refusal of local and international financial institutions to expedite actions on loan requests from operators in the oil and gas industry.

    Oyebanji, who spoke on the sideline of an oil and gas forum in Lagos recently, said banks were careful of advancing credits for certain oil and gas projects, after appraising the situations in the petroleum industry vis-à-vis the capacity of operators to fulfil their debt obligation.

    He said: “With exchange rate of naira to dollar reaching N230 at a time before it came down to N198 per dollar, it is obvious that local operators would find it difficult to operate in the country. The cost of procuring machineries abroad for projects that are going to be executed in the country is high and unsustainable. Banks compounded the woes of operators by not giving them the required facilities or credits. The adverse effect of these problems on industry is absence of new investments.”

    He said major oil marketers were battling with huge interest rates charged on the loans they collected to finance the importation of petroleum products into the country.

    He attributed the rise in cost of subsidies paid to importers of fuel to interest rates, adding that the non-payment of subsidies is affecting their operations.

    “We (oil marketers) have not been paid subsidies in the past few months. Besides, banks are going to add their interest to the money we collected from them. Is that sustainable? We know that if we fail to continue in business, operations in the downstream segment of the industry are going to be affected,” he said.

    He said product adulteration is another problem besetting the operation of marketers, adding that there are cases where some Nigerians adulterate petrol by mixing it with kerosene, arguing that the development is affecting their business.

    According to him, there are cases of adulterated petrol in Port Harcourt, the Rivers State capital and other states in the country.

    He said the only way to have a fixed price regime in the industry is when a team is set up to enforce it.

    He said marketers were selling prices of petroleum products are at different prices, arguing that the idea does not augur well with the industry.