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Tag: PENGASSAN

  • How to tackle challenges in oil and gas sector, by PENGASSAN

    How to tackle challenges in oil and gas sector, by PENGASSAN

    Workers in the oil and gas sector have called for a comprehensive approach that includes improving environmental depredations, investing in social infrastructure and strengthening security measures to address the challenges. TOBA AGBOOLA writes.

    Miffed by the challenges in oil and gas, workers in the sector have called for the deepening of private sector participation to address them.

     The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) identified the promotion of local content development as well as increasing investments in the sector as part of initiatives that can return Nigeria to prosperity.

     Expressing the concerns at the union’s National Executive Council (NEC) in Abuja, the President of PENGASSAN, Comrade Festus Osifo, lamented the challenges that are hindering the growth and development of the industry.

    Osifo noted that the sector suffers from a lack of adequate infrastructure, including refineries, pipelines, storage facilities, and transport networks.

     “This leads to a heavy reliance on imports of refined petroleum products, making the country more vulnerable to price fluctuations in the international market and increasing cost of energy,” he said.

    Other canker worms infesting the sector, the PENGASSAN boss said, lie in security issues, namely, crude oil theft, pipeline vandalism, and attacks on oil installations that are “a constant occurrence”.

    He continued: “These acts of sabotage disrupt production and result in revenue losses for the government and oil companies. Emphasising the need for more proactive measures to combat the challenges, Osifo said the presence of armed groups, insurgent activities and organised high-power stealing further exacerbates the security challenges.’’

     While he praised the passage of the Nigeria Oil and Gas Industry Act (NOGIC) in 2010, saying it has promoted local content participation in the industry, he, however, expressed dismay that the country was still far from implementing the law to the letter.

    Read Also: PENGASSAN urges Tinubu to relocate militiary chiefs to N’Delta

     According to him, “To promote sustainable growth, it is crucial to increase local content development and provide training and capacity-building opportunities for Nigerian professionals and entrepreneurs in the industry.”

    But, he commended the recent presidential order that incentivises investments in oil and gas, noting that it “is a welcome development”.

    Reducing national debt profile

    On the riding of the debt profile, Osifo said the menace of our borrowings and the consequent increasing debt profile, at the federal and state levels, is a time bomb with highly catastrophic implications.

    He said: “It is worse that these borrowings are not invested judiciously or with proper accountability. Countries that have benefited from debts and improved their economies did so because they borrowed with purpose and accounted for that purpose with returns to offset their loans. The borrowing rate calls for deep concern, especially with the reported increase in FAAC allocations and internally generated revenue.

    “The increased debt profile approaching over N107 trillion, with no corresponding evidence of proper use of the loans is a show of purposeless borrowings and a speedy destruction of our tomorrow and this should be halted.”

    Subsidising the cost of living

     Osifo said as the cost of living continues to escalate, the federal and state governments have expressed their commitment to offer palliatives and subsidies to alleviate the financial burden on citizens.

    “We are worried about the implementation of targeted subsidies tailored to the specific needs of each state. While the government’s intentions to help alleviate the burden of the cost of living on Nigerian citizens are noble, we must also be mindful of the potential implications of such a subsidy. It is important that we carefully consider the long-term effects of this policy and explore alternative solutions that can address the root causes of poverty and inequality in our society as giving handouts alone cannot completely solve the problem,” he added.

  • PENGASSAN urges Tinubu to relocate militiary chiefs to N’Delta

    PENGASSAN urges Tinubu to relocate militiary chiefs to N’Delta

    Oil workers have urged President Bola Tinubu to relocate military chiefs to the Niger Delta to halt crude oil theft and generate more revenue for the country.

    The workers, under the aegis of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), urged the Tinubu administration to pay more attention to the region as an increase to crude oil production was critical to stabilising the economy.

    President of PENGASSAN, Comrade Festus Osifo, who spoke on behalf of the oil workers at the National Executive Council (NEC) meeting of the union on Thursday in Abuja, noted that the country’s crude oil production could increase by 30 per cent if oil theft was tackle.

    Osifo said: “We have tried to let government understand that they need to pay more attention to what’s happening in the Niger Delta. We’re talking about solid minerals they are quite good, we are talking about diversification they are quite good but they cannot come overnight. The easiest solution and what can come readily overnight is actually incremental production of crude oil today.

    “If all is done the right way we could increase our crude oil production by nothing less than 30%. When this is done it’s going to give us more forex, the Central Bank of Nigeria (CBN) could have much more financial muscles to be able to defend our naira. We implore President Tinubu to ask his commanders to relocate to Niger Delta and ensure that this menace of crude oil theft is put to a halt.

    “If you put it to a halt you will be able to generate more revenue and at the end of the day, the Nigerian state will be better for it.”

    Condemning the killing of military personnel at Okuama community in Delta state, Osifo urged the military to approach the situation with caution to avoid a repeat of what happened in Zaki Biam and Odi, while ensuring perpetrators of the act were caught and justice served.

    Read Also: Tinubu inaugurates ECOWAS Parliament

    The PENGASSAN President also expressed concerns over government’s explanation of only increasing the electricity tarriff of those within Band A and enjoying 20 hours light.

    Osifo, who doubles as President of the Trade Union Congress of Nigeria (TUC), noted that the details were currently being studied to allow labour address the issue properly, saying government may be deploying a strategy to ensure a seamless enforcement of a new tariff across all Bands.

    According to him, labour would take a formal position after studying the details to ensure that the downtrodden Nigerians would not be affected.

    He said: “We are cross – examining it. They said it’s for those within Band A and those within Band A are those that are receiving 20 hours light in a day, but we are to interrogate this further because as of today, just jumping from N66 to about N225 is quite enormous. 

    “We need to also check the cost today if you are powering your generator is it even up to N255? We think that government should exist for the purpose of serving the people. Looking at it peripherally without studying the detail because we are yet to study the details, we think that the price hike is quite astronomical.

    “Given the currency floatation that has put us in this mess literally today, adding that to the subsidy removal, I think it is quite drastic.

    “Part of our fear is also you know, government will come and they may test these for the high class as they have explained; for those living in Maitama and Asokoro. Who knows, in the next one week or two weeks, they may also cascade this down.”

  • PENGASSAN women group harps on gender equality

    PENGASSAN women group harps on gender equality

    The Women Wing of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has stressed the importance of gender equality.

    Speaking with The Nation, the Deputy General Secretary of PENGASSAN, Comrade Ngozi Okagbue, said the imperativeness of pressing for progress could not be over-emphasised because despite the progress that women had made in the fight for parity and social equity, there were still a lot of areas to be covered.

    “More than ever, there is a call to action to press forward and progress to be made in gender parity; a strong call to press for progress. A strong call to motivate and unite friends, colleagues and the communities to think, act and be gender inclusive,’’ she added.

    Okagbue stressed the importance of women in society, saying the PENGASSAN women group advocates that women hold elected positions at the federal, state and council levels, in addition to the oil and gas sector.

    Read Also: Tinubu commends outgoing Immigration CG

    She called for the inclusion of more women at decision-making levels for national development.

    Also, Okagbue urged the government to address the socio-economic situation, adding that this could cause chaos in the country.

    “The truth is that there is real hunger in the land, and the hardship is becoming unbearable. Nigerians are choking and can barely breathe. The government needs to address the situationurgently,” she said.

  • PENGASSAN rejects Renaissance Group’s bid for Shell assets

    PENGASSAN rejects Renaissance Group’s bid for Shell assets

    • Vows to protect members

    Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has warned Shell Petroleum Development Company Limited (SPDC) over the intended sale of its Onshore Assets to the Renaissance Group, saying it is unknown to them.

    According to the union, the group is an assemblage of unknown entities with no proven track record in managing such diverse assets.

    The Renaissance Group is a consortium of ND Western Limited, Aradel Holdings Pic. The Petrolin Group, FIRST Exploration and Petroleum Development Company Limited and the Waltersmith Group.

    In a statement, PENGASSAN President, Comrade Festus Osifo and General Secretary,  Lumumba Okugbawa, said one of the companies that made up the consortium has a history of subjugating workers and subjecting them to hardship as exemplified in the  management of OML 34.

    Read Also; Edo guber: I won’t be bullied out of race, says Philip Shaibu

    The union said: “Our Shell/SNBO Branch of PENGASSAN has further communicated  subsequent information presented to our members by Shell Management on the planned sale.

    “We reject without equivocation the terms affecting employees that were communicated in the presentation to our members.

    “Another company in the group has a penchant for preventing workers from unionising and thus stiffening their condition of services.

    “Any attempt to transfer the assets without resolving issues affecting our members will be met with the stiffest resistance the industry has ever witnessed.

    “The group must come clean with its intention(s) and be ready to have serious engagement with the association and not the jamboree that Shell Management is engaging in.

    “We have communicated to our Shell/SNBO Branches not to be distracted but to focus on the CBA negotiation that is due about a week from the industry regulator, JV Asset partners (NNPCL, Non-Operated Asset Partners) and other stakeholders are hereby put on notice.”

  • PENGASSAN to NNPC boss: address pipeline vandalism, price uncertainty

    The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), has called on the new Board of the Nigerian National Petroleum Corporation (NNPC) to act fast on the challenges facing the industry.

    In a letter to Mele Kyari and signed by the General-Secretary, Comrade Lumumba Okugbawa, the union said challenges such as pipeline vandalism, crude oil theft, inadequate infrastructure and pricing uncertainties should be looked into.

    ”We agree that the nation’s oil and gas industry is on a steady progression to the next level. However, the challenges associated with pipeline vandalism,  crude oil theft, inadequate infrastructure, pricing uncertainties, and the obsolete refineries as well as the contentious fuel subsidy issues and resting of the Petroleum Industry Bill (PIB), are issues the Nigerian masses expect the new NNPC Board to champion.”

    The union described Kyari’s appointment as well-deserved and a recognition of his 27 years of contributions and exemplary service to the NNPC group, the nation’s oil and gas sector and the growing economy that is majorly dependent on the industry.

    PENGASSAN said,  Kyari is a quintessential crude oil marketer with prerequisite certification and outfield pedigree in petroleum economics, and crude oil and gas trading, whose knowledge, wisdom, forthrightness, steadfastness, and purposefulness to the corporation, the oil and gas industry and the nation as a whole, is being rewarded by the new appointment.

    It said: “Your appointment did not come to our Association as a surprise because it is a testament to your hard work, dedication to duty and exemplary leadership quality. Our Association, having watched your steady and impactful progression over the years, welcome this great honour, higher responsibilities and challenges vested with this new appointment.

    “PENGASSAN as an in-house association in the sector, which your membership and activities climaxed with the position of GEC Chairman of NNPC, is aware how under your stewardship, the crude oil marketing division recorded noticeable transformation in the management and sales of various Nigeria’s crude oil grades through the infusion of transparency and automation of the processes.”

    The association revealed how it has followed Mr Kyari’s career  progression and believed that his appointment would further aid in the development of the oil and gas industry and the nation’s economy.

    ” We are also aware of how you led the team that proposed and managed the Direct Sales and Direct Purchase (DSDP) arrangement of petroleum products from 2016 to date, a process that saved the nation of over $1million in 2016 as a result of your handling of the crude oil swap arrangement with products. It is on this premise that PENGASSAN believes that your testament to exemplary record and exceptional performance over the years in different strategic roles will be of immense benefit to not just the corporation, but the nation’s oil and gas industry and the nation’s economy,” the union said.

    To the immediate past GMD, Dr Maikanti Baru, the association while commending him for his contributions to the growth of the industry, said history will remember him for his good works that brought stability to the industry in terms of industrial relations management and free flow of refined products.

    PENGASSAN also described its partnership with the outgone GMD as legendary, which they will forever remain grateful, and wished him the best of luck in his future endeavours.

  • Ministry urges PENGASSAN not to forget Johnson’s family

    The Permanent Secretary, Federal Ministry of Labour and Employment, William Alo, has urged Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), not to forget the family of its late president, Comrade Francis Olabode Johnson.

    Speaking when he led a delegation of the management staff of the Ministry on a condolence visit to the office of PENGASSAN in Abuja, the Permanent Secretary pledged that government would sustain the industrial peace and harmony he fought for.

    He enjoined those he left behind to bear the death of the Comrade with fortitude and be consoled by the numerous testimonies about the good life he lived.

    Commending the late Johnson on his achievements in the Petroleum and Natural Gas sector, Alo said: “The late PENGASSAN President employed his wealth of experience and administrative ingenuity in bringing about good industrial relation that has stabilised the sector.”

    He expressed shock, deep sorrow and pain over the death of the President, Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Comrade Francis Olabode Johnson.

    He paid tribute to the departed comrade, describing him as a dependable ally of the Ministry, whose support and contribution assisted the Ministry in achieving its mandate of maintaining industrial peace and harmony in the country.

    In a response, the Acting President of PENGASSAN, Frank Esanubi, described the late Johnson as a great and humble man, who was versed in the ability to maintain relationships.

    He disclosed that PENGASSAN, in collaboration with social partners, would set up a Trust Fund for the education of the children of its late President, adding that details of that would be made known to the social partners in due course.

    In a related event, the Permanent Secretary, Ministry of Petroleum Resources, Dr. Folashade Yemi-Esan, condoled with PENGASSAN over the sad death of its National President, Francis Olabode Johnson.

    Dr. Esan said in a statement that the Johnson-led PENGASSAN and the Ministry enjoyed a very cordial relationship with the entire rank and file of PENGASSAN for the growth of the Oil and Gas Sector in particular and the advancement of the nation in general.

    “The Ministry will greatly miss his cool head, calm disposition and great grasp of the trends and understanding of policy directions of government. Our sympathies also go to the wife and children of Mr. Johnson and prayed to God to grant him and the rest of the Johnson’s Family the fortitude to bear this irreparable loss, Amen,” the statement said.

     

  • Ministry condoles PENGASSAN over Johnson’s death

    The Permanent Secretary, Ministry of Petroleum Resources, Dr. Folashade Yemi-Esan, on behalf of the Management and Staff of the Ministry expressed deep sympathy with the National Executive Council (NEC) and the National Working Committee (NWC) of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) over the sad death of its National President, Mr. Francis Olabode Johnson.

    The death occurred in the early hours of Friday.

    Read Also: Breaking: PENGASSAN confirms death of President, Johnson

    In a statement in Abuja, Yemi- Esan said: “Mr. Johnson – led PENGASSAN and the Ministry enjoyed a very cordial relationship with the entire rank and file of PENGASSAN for the growth of the Oil and Gas Sector in particular and the advancement of the Nation in general.

    “The Ministry will greatly miss his cool head, calm disposition and great grasp of the trends and understanding of policy directions of Government.

    “Our sympathies also go to the wife and children of Mr. Johnson and pray to God to grant him and the rest of the Johnson family the fortitude to bear this irreparable loss, Amen.”

  • NUPENG, PENGASSAN to FG: shun counsel on removal of fuel subsidy

    Workers in the oil and gas sector on Sunday advised President Muhammadu Buhari to shun any counsel that would destabilise or cause chaos in the economy.

    The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association (PENGASSAN) gave the advice in a statement in Lagos.

    The statement was signed by Mr Okugbawa Lumumba, PENGASSAN General Secretary and Afolabi Olawale, NUPENG’s General Secretary.

    The Managing Director, International Monetary Fund, Christine Lagarde had on April  12 called on the Federal Government to remove fuel subsidy because of low revenue mobilisation that existed  in terms of tax to Gross Domestic Product.

    They said that the IMF advice on how to recover Nigerian economy was worrisome as it had become counter productive.

    “Any economic policy that is devoid of human feelings can lead to more social dislocations and upheavals, which will later become counterproductive as currently experienced,’’ it said.

    The unions said that IMF had created panic in the country with associated hoarding of petroleum products, panic buying, skyrocketed increases in prices of goods and services in the country.

    Read also: Fuel: NUPENG, IPMAN say no reason for panic-buying

    It said that earlier, the IMF chief praised the significant progress the nation had made in terms of its Gross Domestic Product (GDP) that increased by 1.9 per cent in 2018 from 0.8 per cent in 2017.

    It said that the IMF was not considering the pains and agonies the people went through to achieve the  gains of 2018, with almost two-thirds of the world’s hungriest people among Nigerians.

    The unions also cautioned that imposing more stringent reforms in domestic revenue mobilisation including increase in VAT and securing more domestic oil revenues through subsidy removal was an attempt to destabilise the nation.

    The unions in the statement appealed to President Buhari to put in mind the current hardship the people were going through in their collective journey to economic recovery. (NAN)

  • PENGASSAN: Strikes not feasible with NNPC’s rehabilitation plans

    Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has assured the Federal Government that oil workers may not embark on another round of industrial action if the plans by the Nigerian National Petroleum Corporation (NNPC) to rehabilitate the four state-owned refineries are realised.

    NNPC Group Managing Director, Dr Makanti Baru, had stated that the Federal Government would return the refineries to their nameplates by the end of 2019. The refineries are Port Harcourt 1& 2, Warri and Kaduna.

    In an interview with The Nation, the immediate past PENGASSAN chairman, Port Harcourt Refineries branch, Mr. Mike Agbana, said oil workers are not thinking of embarking on strike now, adding that the issue of returning the refineries to optimal capacity is uppermost in the minds of the workers now.

    Agbana said: “In every 24 months, Port Harcourt refineries and other government owned refineries are expected to undergo turnaround maintenance in line with industry standard. But that has not been possible.  Since year 2000, Port Harcourt refineries have not experienced any turnaround initiative. To be frank, the refineries are dead. This informed the decision of workers to advocate for at least, 90 per cent output of the refineries and not strike action.

    “In the first leg of the rehabilitation of the refineries, Eni-Agip and other critical stakeholders in the sector will play a role, which is good news for the industry and the country, which has been spending huge amount of money to subsidise the importation of fuel into the country.”

    Agbana said the decision by NNPC to rehabilitate the refineries would help in easing fuel scarcity and further increase availability of the petroleum products, especially Premium Motor Spirit (PMS), which the country uses a lot for economic activities.

    “Two achievements are expected to be recorded by the government’s plans to fix the refineries. First is the fact that there would be more fuel in the country. Secondly, more job opportunities will be created, when refineries work at optimum capacity. That is, thousands of jobs that have been lost to sordid state of the refineries would be recovered soon.”

    According to him, the workers are not expecting the government to out-rightly sell the refineries, but adopt the structures used in bringing the Nigerian Liquefied Natural Gas (NLNG) to optimum production for reviving the refineries also.

    He said when Dr. Baru promised to rehabilitate the refineries on March 21, this year, the statement was greeted with applause from the stakeholders, especially the workers.

    He said the reason was because the idea will lay to rest the issue of poor performance of the refineries.

    Past governments, especially those before the All Progressive Party (APC) government, he said, spent years to retool the refineries, but to no avail, stressing that workers had thought that NNPC would do the same thing.

    Agbana said NNPC has proved everybody wrong by organising what he described as a ground breaking ceremony for the rehabilitation of the refineries, a development, which would return the country to era of abundance of fuel supply.

  • PENGASSAN: Strikes not feasible with NNPC’s rehabilitation plans

    Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has assured the Federal Government that oil workers may not embark on another round of industrial action if the plans by the Nigerian National Petroleum Corporation (NNPC) to rehabilitate the four state-owned refineries are realised.

    NNPC Group Managing Director, Dr Makanti Baru, had stated that the Federal Government would return the refineries to their nameplates by the end of 2019. The refineries are Port Harcourt 1& 2, Warri and Kaduna.

    In an interview with The Nation, the immediate past PENGASSAN chairman, Port Harcourt Refineries branch, Mr. Mike Agbana, said oil workers are not thinking of embarking on strike now, adding that the issue of returning the refineries to optimal capacity is uppermost in the minds of the workers now.

    Agbana said: “In every 24 months, Port Harcourt refineries and other government owned refineries are expected to undergo turnaround maintenance in line with industry standard. But that has not been possible.  Since year 2000, Port Harcourt refineries have not experienced any turnaround initiative. To be frank, the refineries are dead. This informed the decision of workers to advocate for at least, 90 per cent output of the refineries and not strike action.

    “In the first leg of the rehabilitation of the refineries, Eni-Agip and other critical stakeholders in the sector will play a role, which is good news for the industry and the country, which has been spending huge amount of money to subsidise the importation of fuel into the country.”

    Agbana said the decision by NNPC to rehabilitate the refineries would help in easing fuel scarcity and further increase availability of the petroleum products, especially Premium Motor Spirit (PMS), which the country uses a lot for economic activities.

    “Two achievements are expected to be recorded by the government’s plans to fix the refineries. First is the fact that there would be more fuel in the country. Secondly, more job opportunities will be created, when refineries work at optimum capacity. That is, thousands of jobs that have been lost to sordid state of the refineries would be recovered soon.”

    According to him, the workers are not expecting the government to out-rightly sell the refineries, but adopt the structures used in bringing the Nigerian Liquefied Natural Gas (NLNG) to optimum production for reviving the refineries also.

    He said when Dr. Baru promised to rehabilitate the refineries on March 21, this year, the statement was greeted with applause from the stakeholders, especially the workers.

    He said the reason was because the idea will lay to rest the issue of poor performance of the refineries.

    Past governments, especially those before the All Progressive Party (APC) government, he said, spent years to retool the refineries, but to no avail, stressing that workers had thought that NNPC would do the same thing.

    Agbana said NNPC has proved everybody wrong by organising what he described as a ground breaking ceremony for the rehabilitation of the refineries, a development, which would return the country to era of abundance of fuel supply.