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Tag: PENGASSAN

  • PENGASSAN urges Buhari to support oil workers training

    PENGASSAN urges Buhari to support oil workers training

    The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has urged President Muhammadu Buhari to support the workers in the oil and gas industry for training, research and development in all aspects of petroleum operations and technology to enhance the acquisition of skills and foster competitiveness.

    The oil workers’ union has also called for effective utilisation of the seismic data and other discoveries made under the Petroleum Technology Development Fund (PTDF) research partnerships as well as the exploration of values created by the PTDF trained scholars to augment the industry’s skills/expertise gap.

    PENGASSAN’s President, Comrade Francis Johnson made the call in Lagos while briefing reporters.

    He said: “We call on President Muhammadu Buhari to aggressively support the workers in the oil and gas industry to deepen training, research and development in all aspects of petroleum operations and technology to enhance the acquisition of skillset/expertise and foster competitiveness because the key driver of any industrial and economic growth is Research and Development.

    “The need to continuously train oil workers and improve on research and development is one of the most important factors that will cause the effective drive which will make the oil sector accomplish optimal performance”.

    According him, the PTDF has also done extensive research which led to the development and patenting of Zeolite, a catalyst for the improved refining of heavy crudes, which is produced from local clay.

    “In view of the position of President Buhari on the need to resume exploration activities in the Chad Basin, we are aware that the PTDF has done extensive research on the chad basin from 2003 to date through one of its upgrade facilities at the University of Maiduguri on the “effect of volcanic and intrusive generation and accumulation of hydrocarbons in Nigeria’s flange of the Chad Basin,” he said.

  • PENGASSAN urges Buhari to support oil workers training

    PENGASSAN urges Buhari to support oil workers training

    The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has urged President Muhammadu Buhari to support the workers in the oil and gas industry for training, research and development in all aspects of petroleum operations and technology to enhance the acquisition of skills and foster competitiveness.

    The oil workers’ union has also called for effective utilisation of the seismic data and other discoveries made under the Petroleum Technology Development Fund (PTDF) research partnerships as well as the exploration of values created by the PTDF trained scholars to augment the industry’s skills/expertise gap.

    PENGASSAN’s President, Comrade Francis Johnson made the call in Lagos while briefing reporters.

    He said: “We call on President Muhammadu Buhari to aggressively support the workers in the oil and gas industry to deepen training, research and development in all aspects of petroleum operations and technology to enhance the acquisition of skillset/expertise and foster competitiveness because the key driver of any industrial and economic growth is Research and Development.

    “The need to continuously train oil workers and improve on research and development is one of the most important factors that will cause the effective drive which will make the oil sector accomplish optimal performance”.

    According him, the PTDF has also done extensive research which led to the development and patenting of Zeolite, a catalyst for the improved refining of heavy crudes, which is produced from local clay.

    “In view of the position of President Buhari on the need to resume exploration activities in the Chad Basin, we are aware that the PTDF has done extensive research on the chad basin from 2003 to date through one of its upgrade facilities at the University of Maiduguri on the “effect of volcanic and intrusive generation and accumulation of hydrocarbons in Nigeria’s flange of the Chad Basin,” he said.

  • PENGASSAN asks Buhari to increase local refining capacity

    PENGASSAN asks Buhari to increase local refining capacity

    The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has called on President Muhamadu Buhari to increase local refining capacity before embarking on any deregulation process

    This is contained in a statement on Tuesday by PENGASSAN National Public Relations Officer, Mr Emmanuel Ojugbana.

    The union called on the president to ensure that the focus of deregulation policy was based on local production rather than importation.

    It said that if local refining was not increased to meet local demand for petroleum products, especially the premium motor spirit (petrol), removing subsidy on petroleum products would bring more hardship on Nigeria.

    It stated that removing subsidy while the country depended on importation of refined products would make prices of refined products to be out of the reach of the masses and would cause inflation.

    It said that importation of refined petroleum products was a major drain on the nation’s revenue, adding that it created jobs for the refining nations in spite of the high unemployment rate confronting Nigeria.

    “Importation of refined petroleum products is also putting the Naira under undue pressure and creating social problems for the economy.

    “This is unacceptable to PENGASSAN.

    “Abrupt removal of fuel subsidy will create chaos that may ground the economy.

    “PENGASSAN calls for well-coordinated measures with timeline to achieve self-sufficiency in local refining as a means of proffering acceptable steps to end fuel subsidy.

    “This should be combined with such other measures for effective optimisation of gas, especially for domestic, industrial, electricity and automotive energy. Such will create other affordable and friendly sources for energy needs,” it stated.

    It called on the government to declare a state of emergency in the downstream oil and gas sector.

    It also urged the government to convene an all-stakeholders forum to come up with concrete and sustainable steps with reliable timeline for achieving demand-supply equilibrium through local refining.

    It stated that the strategy must be to guarantee a total stoppage of both petroleum products importation and fuel subsidy.

    It said Nigerians expect that relying on the resources that the nation was endowed with, the country should be able to provide refined products at reasonable and affordable prices to the populace,

    It stated that this could have been possible if local refining capacities were enhanced.

    It explained that both the government and industry operators had always yearned to promote competition and efficiency but failed to assure on how to enhance local refining capacity to contain local demand.

    “Government is thus persistently confronted with import parity pricing and the burden of subsidising the imported fuel instead of locally refined products.

    “As an important stakeholder in the sector, we oppose the petroleum products importation regime, which is rent seeking and indeed a drain device that is inimical to our economic and social empowerment.

    “It is affecting our self-dependence and means of job creation. Thus, we maintain our unwavering belief in local refining,” it stated.

    It stated that PENGASSAN strongly subscribed to the retention of the state-owned refineries in the best interest of the Nigerian nation and for economic security.

    It stated that this was in keeping with OPEC’s principle that member countries should hold good grip of the commanding height of their economy.

    “PENGASSAN maintains strong objection to the privatisation of state-owned refineries as the OPEC principle is being cautiously guided by other OPEC member countries,” it stated.

  • Oil workers invade AMCON’s office over unpaid salaries

    Oil workers invade AMCON’s office over unpaid salaries

    Oil workers acting under the aegis of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and Nigerian Union of Petroleum and Natural Gas Workers (NUPENG),  yesterday disrupted normal office activities at the Asset Management Corporation of Nigeria (AMCON) headquarters in Abuja.

    Dressed in their usual oil extracting uniforms with Seawolf inscribed, the aggrieved workers protested unpaid 22 months salary arrears AMCON allegedly owed them.

    The angry workers were seen with placards which read: “AMCON enough is enough, pay us our money”, “Ministry of Labour and Productivity, tell AMCON to pay us our money”, “AMCON 48 hours have come and gone, pay us our money” and “Our children are out of school due our inability to pay school fees. Pay us our money”.

    Chairman of Seawolf branch of the union, Christian Okojie while speaking with reporters lamented that AMCON agreed to attend to them 48 hours after their initial protest.

    According to him, several letters and mails have been written to him including text messages seeking to have an audience with the management, adding that it was frustrated.

    Okojie said: “We are here to get our terminal benefits and outstanding salaries. AMCON took over our management two years ago. When they came in, they assured us that they will take care of our welfares. They only paid us two months salaries, December 2013 and January 2014.

    “Since then, they have refused to pay after making several attempts to get AMCON to a roundtable to chart a way forward for the workers.

    “We have gone to Ministry of Labour and Productivity, Ministry of Petroleum. In all the meetings we held, they asked AMCON to pay but AMCON has refused to comply.”

    In his remark, PENGASSAN Chairman Godfrey Okoloba said members of the association resolved to remain in AMCON’s premises until the Federal Government intervenes in the situation.

    “Our children are hungry, some are out of schools, in fact three of our members are in mortuary and their widows have not been taken care of for the past two months now. We don’t have anywhere to go to. We will sleep here.”

    Asked if deliberate efforts were made to meet the AMCON executive, Okoloba restated that the Chief Executive Officer of AMCON Mr. Mustapha Chike-obi met with them and promised to attend to the situation after 48 hours. However, three weeks after, AMCON was yet to reach out to them.

    However, Chike-Obi denied owing the aggrieved workers. He alleged that the workers were not genuine staff of the Offshore Management Services (OMS) but engaged through an agent.

    He said: “AMCON is trying to sell the oil rigs and payback the company so the company can pay the workers. We do not owe them. The rigs have not been working in the past six months.”

  • Scrap SURE-P, PENGASSAN urges

    THE Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has urged President Muhammadu Buhari to scrap the Subsidy Reinvestment Programme (SURE-P), arguing that the N21billion is provided for its operations in the year’s budget should be spent on infrastructure.

    Its President, Mr. Francis Johnson, alleged the SURE-P was set up by former President Goodluck Jonathan to settle some people, adding that it was the major reason for the problem of integrity that dogged the implementation of the programme.

    He said: “Subsidy Reinvestment Programme (SURE-P) for which N21 billion is provided in the 2015 Budget should be scrapped. SURE-P largesse is at the whims of the party in power to settle those it wishes to favour with a lot of integrity issues around the program regarding fostering balance and accountability.”

    He said the Nigerian National Petroleum Corporation (NNPC), made up of the holding companies and 10 subsidiaries, had been subjected to undue political interference, which he claimed, hindered its autonomy for effective running and competitiveness.

    Johnson said: “Operations and administration of NNPC come under several masters and conflicting instructions, some of which defy the national objectives and aspirations for setting up the national oil corporation and its subsidiaries.

    “Appointment, removal and/or transfer of the heads and the staff of the corporation and its subsidiaries are often executed in the manner that undermine by fiat, the extant national laws, NNPC Act and its Corporate Policy and Procedure Guide.”

    He called for the reorganisation of the NNPC and its subsidiaries to function effectively with clearer mandate and empowerment. This, he noted, would make the NNPC to operate and compete professionally in line with corporate governance principles and without undue political interference.

    On the Nigeria Petroleum Development Company (NPDC), he said there was the need for full autonomy and responsibility, good corporate governance principles and practices.

    He said pipeline vandalism is a major dent to nation and business integrity in the oil and gas industry, adding that the menace is the major cause of incessant shut-in of production, force majeure and high cost of maintenance and repairs

    “The nation has continued to groan in unimaginable economic /revenue losses particularly with the depletion in revenue to the Federation Account and the attendant impact on governance. The menace continues to build up weaning confidence in the Industry’s operators and players,” Johnson said.

     

  • Petrol crisis to ease as govt, marketers settle

    Petrol crisis to ease as govt, marketers settle

    FUEL pumps may start flowing again, with senators facilitating an agreement between the Federal Government and oil marketers. Tankers are to immediately start lifting fuel in Lagos, Port Harcourt, Warri and Calabar depots.

    The Senate yesterday mandated its joint committee on Petroleum Resources (upstream and downstream) to meet with stakeholders, including the Federal Government, to resolve the lingering fuel scarcity, which has crippled the economy.

    Banks have cut work hours and mobile firms are threatening to shut down. Transport fares are hitting the roof and airlines are cancelling flights.

    The resolutions were read by the Chairman, Senate Committee on Petroleum (Downstream), Senator Magnus Abe.

    Part of the resolutions is the immediate call-off of the National Union of Petroleum and Natural Gas Workers (NUPENG) and Petroleum and Natural Gas Senior Staff Association (PNGASSAN) strike.

    The resolution said that the strike was called off after the intervention of the Group Managing Director (GMD) of the Nigeria National Petroleum Corporation (NNPC), Dr. Joseph Dawha.

    The resolution mandated the Minister of Finance and Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala, to give an undertaking to the Major Oil Marketers Association of Nigeria (MOMAN) and Depot Managers Association of Nigeria (DAPPMA) that the work of the committee being headed by the Central Bank of Nigeria (CBN) and Petroleum Products Pricing and Regulatory Agency (PPPRA) will be concluded.

    The committee is to verify the N200 billion MOMAN is claim that the government owes its members.

    The resolution said if the committee “concludes its verifications of the outstanding claims before the end of the life of this administration, it would be reflected in the handover notes to the new president.

    “If it is not concluded, then, the fact that such a committee was set up and is working, will be reflected in the handover notes and a copy of the letter conveying the existence of this committee will be sent to MOMAN and DAPPMA and, also, a copy will be sent to us in this committee.”

    It added “On the basis of that agreement, MOMAN will offer whatever cooperation that is needed to enable lifting of petroleum products to begin nationwide within six hours.

    “MOMAN has also agreed to give a similar undertaking to National Association of Road Transport Owners (NARTO) to pay existing transport costs as has been determined by them.

    “MOMAN will give a written undertaking to NARTO and a copy will also be sent to this committee.

    “NARTO and its affiliates nationwide will commence lifting of petroleum products from available fuel depots within the next six hours.

    “DAPPMA is to instruct all their depots that have products to open those depots up to lifting of petroleum products within the next six hours.”

    Abe said that they also agreed with the Department of Petroleum Resources (DPR) that “any depot that has product and fails to lift in the next six hours should have their licences revoked immediately.”

    He went on: “We have also agreed that NNPC should direct its staff nationwide to work 24 hours, including Saturdays and Sundays, for the next two weeks until normalcy returns to the sector.

    “We have also agreed to reach out to the Lagos State Government to facilitate this agreement and reach some kind of arrangement with tanker drivers to allow access to the relevant depots to facilitate lifting of products.”

    Abe had in his opening remarks said that the country is in a national emergency due to scarcity of petroleum products,

    He noted that impression was that “no government is in place but there is government in place as the Nigerian Constitution does not envisage any vacuum.

    He said: “As we speak, the airlines are shutting down, telecommunications are shutting down, banks are sending text messages that they are shutting down. We are in a situation of national emergency. I don’t want to talk about what the ordinary man in the streets is going through. I don’t want to talk about what private businesses are going through. We must resolve to solve the problem so that Nigeria can work again.”

    The Chairman, Senate Committee on Petroleum (Upstream), Senator Emmanuel Paulker, described the situation “as a national disaster”.

    He insisted that the meeting should work to find lasting solution in the interest of the country.

    Mrs Okonjo-Iweala, who briefed the committee extensively, said she was at a loss about what is happening.

    She said: “I’m not really sure about what is going on. I also want to understand what is going on. I deeply sympathise with Nigerians. It is deeply regrettable that Nigerians are put in this situation. There is deep anger. The government has done creditably.”

    The Minister wondered why diesel that is not regulated is also scarce and not available for Nigerians to buy.

    She said: “Diesel is not regulated, it is not subsidised. Why is diesel not available? Diesel is a product that should be available for everybody to buy. I want to understand why diesel is also not available.”

    The Minister said that she had a pattern of payment to marketers which the government had not deviated from.

    She added that the pattern this year is even better than what the government had in 2014.

    She insisted that payment to marketers is a rolling obligation and “there is no time that government has reduced the payment to zero”.

    The behavior of marketers, she said, “is inexplicable”.

    She said the last payment the government made to the marketers was N154 billion two weeks ago.

    The Minister said the marketers quickly came up with another claim of N200 billion.

    She said the claim was queried only for the government to find out that N159 billion out of the N200 billion was foreign exchange differential and not for actual product.

    “I told them it is better we get the whole thing verified where the CBN will participate and be in charge of the verification. We agreed to set up a committee but even before we conducted the verification they have started withdrawing and shutting down their facilities.

    “Before I came in, N1.3 trillion was supposedly owed the marketers but there was no shutdown. With N200 billion, the entire country is being shut down.

    “Government is a continuum; why are they saying that the debt must be brought to zero? Is government no longer a continuum?”

    Mrs Okonjo-Iweala said she did not want to leave government in four day time and be summoned to explain why she signed N159 billon cheque.

    “There is a deliberate attempt to sabotage the economy and bring it to a halt so that it will look as if government did not do any thing,” she said.

    Insisting that the whole thing is in bad faith, Mrs Okonjo-Iweala said that Nigerians should ask marketers why diesel that is not regulated is not available.

    She said: “The government cares about Nigerians and the President is deeply concerned. The payment is a rolling payment and there has never been a time when everything is paid.”

    She said the marketers had been paid and there is no reason for them to withhold products except it is deliberate or sabotage.

    MOMAN spokesman Obafemi Olawore blamed it all on lack of funds to import products.

    Olawore noted that at the peak of the challenges facing the association, banks refused to extend credit line to them because members owe banks.

    He said they could not import products on their own.

    He said of N154 billion paid their members, they are owed transporters.

    Olawore also said that because they cannot import on their own, their members can only discharge the products they received from the NNPC.

    The DPR confirmed the availability of products in Lagos, Port Harcourt, Warri and Calabar.

    It said Lagos alone has 425m liters of PMS.

    NNPC GMD, Dawha said there was sufficient product in the country.

    He said: “Even before the election, we made sure that there is sufficient product so that the election will not be disrupted.

    “Even now, we know that there is transition, we make sure there is sufficient product.

    “The marketers are not importing, there is also no lifting for obvious reasons. We also experienced small strike by NNPC workers which has also complicated the matter. We are hoping that they will call off the strike today.

     

  • Fuel scarcity: FG, oil marketers resolve conflicts

    Fuel scarcity: FG, oil marketers resolve conflicts

    … –Products lifting to begin within six hours

    The Senate on Monday recorded a major breakthrough in its efforts to resolve the lingering fuel scarcity in parts of the country

    The upper chamber brokered an agreement between the Federal Government and oil marketers to ensure immediate lifting of available petroleum products by marketers in Lagos, Port Harcourt, Warri and Calabar depots.

    The Senate had mandated its joint committee on Petroleum Resources (upstream and downstream) to meet with stakeholders including the federal government to find immediate solution to the lingering fuel scarcity in the country.

    The resolutions were read by the Chairman, Senate Committee on Petroleum (Downstream) Senator Magnus Abe.

    Part of the resolutions reached at the well attended meeting included the immediate call off of the strike by the National Union of Petroleum and Natural Gas Workers (NUPENG) and Petroleum and Natural Gas Senior Staff Association (PNGASSAN).

    The resolution said the suspension of the strike was made possible due to the intervention of the Group Managing Director (GMD) of the Nigeria National Petroleum Corporation (NNPC), Dr. Joseph Dawha.

    The resolution also mandated the Minister of Finance and Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala, to give an undertaking to the Major Oil Marketers Association of Nigeria (MOMAN) and Depot Owners Association (DAPPMA) that the work of the committee being headed by the Central Bank of Nigeria (CBN) and Petroleum Products Pricing and Regulatory Agency (PPPRA) will be concluded.

    The committee is charged with the responsibility of verifying the N200 billion MOMAN claimed the government owes its members.

    The resolution said if the committee “concludes its verifications of the outstanding claims before the end of the life of this administration, it would be reflected in the handover notes to the new President. “

    “If it is not concluded, then, the fact that such a committee was set up and is working, will be reflected in the handover notes and a copy of the letter, conveying the existence of this committee will be sent to MOMAN and DAPPMA and also, a copy will be sent to us in this committee.”

    It added that “On the basis of that agreement, MOMAN will offer whatever cooperation that is needed to enable lifting of petroleum products to begin nationwide within six hours.

    “MOMAN has also agreed to give a similar undertaking to National Association of Road Transport Owners (NARTO) to pay existing transport costs as has been determined by them.

    “MOMAN will give a written undertaking to NARTO and a copy will also be sent to this committee.

    “NARTO and its affiliates nationwide will commence lifting of petroleum products from available fuel depots within the next six hours.”

     

  • NUPENG, PENGASSAN suspend strike

    The Nigerian National Petroleum Corporation’s chapter of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) suspended their strike on Monday.

    The corporation’s Group Public Affairs Division said in a text message to our correspondent that the workers pledged to provide 24 hours service in order to restore normalcy in fuel distribution.

    The message reads: “NNPC Chapter of NUPENG and PENGASSAN suspend strike. Pledge 24 hours service to restore normalcy to fuel distribution.”

     

  • Fuel crisis deepens as NUPENG, PENGASSAN strike continues

    Fuel crisis deepens as NUPENG, PENGASSAN strike continues

    The crisis in the oil sector seems to be deepening as workers of the Nigeria Petroleum Development Company (NPDC), under the aegis of the Petroleum and National Gas Senior Staff Association of Nigeria, PENGASSAN, and the National Union of Petroleum and Natural Gas Workers, NUPENG, early this week, shut down their operations.

    The unions directed NPDC employees, a subsidiary of the Nigerian National Petroleum Corporation (NNPC) to shutdown indefinitely their locations and all oil production facilities nationwide in a bid to force the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke and the Federal Government to reverse the transfer of operatorship of OMLs 42, 40 and 30.

    The assets were previously operated by Shell.

    The unions are aggrieved that the sale of the assets did not follow due process and would affect the fortunes of the NPDC and its workers.

    Mr. Emeka Offor’s Elcrest Exploration and Production Nigeria Limited, a joint venture company of Eland Oil & Gas Plc, was awarded the operatorship of OML 40, while Mr. Ernest Ezedialu Obiejesi’s NECONDE is the operator of OML 42.

    A source from the union, who pleaded anonymity, said the strike is not national, adding that it is only an arm of the NNPC in Benin.

    He said the workers are agitated   that they were kept in the dark by the management in the entire process, and are of the opinion that management’s decision would not only threaten their jobs, but will jeopardise the future of the industry.

    He said the strike had resulted from a breakdown in communication between the management of the company and the unions.

    Speaking on the development, the President, Trade Union Congress, TUC, Comrade Bobboi Kaigama, calls on  the Federal Government to immediately halt and reverse the last minutes transfers of the operatorship of OML 42, OML 40 and OML 30,  which are being arbitrarily handed over to Neconde Energy Limited, Eland/Elcrest and Shore Line respectively.

    ”We demand immediate reinstatement of the operatorship rights of the Nigeria Petroleum Development Company (NPDC), the NNPC subsidiary that has been successfully operating the assets to avert the brewing industrial crisis in NNPC in view of the impact it will have on the ongoing transition process,” Kaigama said.

  • PENGASSAN condemns attacks

    PENGASSAN condemns attacks

    The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) yesterday condemned the xenophobic attacks on migrants in South Africa.

    In a statement signed by PENGASSAN’s National Public Relations Officer, Comrade Emmanuel Ojugbana in Abuja, the association urged the country’s government to take urgent measures to end the attacks on foreigners.

    The oil workers union demanded that the South African government should ensure that the perpetrators of this heinous crime that led to the death of many foreigners were brought to book.

    It said the report was disturbing, adding that there was no justification for the act.

    “There should be no basis to justify any xenophobic act in South Africa, which the world is greatly admiring as a model in the handling of multi-racial state status.

    “By our divergent background and orientation, the process of interrelating and building consensus is key for harmonisation of conflictual views and standpoints.

    “Conflicts and disputes are sometimes inevitable, but must be managed in a manner that lives, properties and interests would not be put in jeopardy.

    “The South African Government on its part, must ensure that the xenophobic act is expediently and permanently apprehended and never should it happen again.”

     

    “All steps and actions required to pacify and appease the affected countries and their nationals must be followed with strong assurances of our joint faith and with due regards for our strong ties and bonds as non-discriminatory black race.

    “Strict adherence to the rule of law and due process must be followed and exhausted in dealing with our unresolved differences.

    “Culprits must be brought to book to demonstrate to the world that there is no complicity on the part of the South African Government,” the statement said.

    It, therefore, called on the Federal Government to urgently put in place a machinery that would adequately develop the nation’s economy, create the enabling environment and opportunities for gainful employment, particularly in the oil and gas sector.

    It noted that the optimization of the oil and gas sector had the potential for limitless job creation opportunities that could make many Nigerians seeking greener pasture in other countries to proudly grow this career.