Exxon, PENGASSAN negotiations fail

… Nigeria’s oil production threatened

Fresh information reaching The Daily Times has it that negotiations between Exxon officials in Nigeria and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has failed.

The Daily Times learnt that both parties could not come to a mutual understanding to the crisis on ground.

“The meeting broke down, and as of this morning our action has been escalated,” Gbenga Ekundayo of PENGASSAN, said in a statement to The Daily Times over the weekend.

“Our people in the field have started withdrawing their services, which will automatically translate to production loss. We are pulling out completely, “he added.

Two weeks ago, PENGASSAN shut down activities at the ExxonMobil headquarters in Lagos.

The Daily Times gathered that the strike action was over irreconcilable differences between the management of the oil company and the union.

The striving oil workers led by PENGASSAN National President, Olabode Johnson, as early as 7 am, prevented workers including visitors from entering the company premises.

The workers were said to be angered over failure of ExxonMobil’s management to honour the agreement reached with the Minister of State for Petroleum Resources, Ibe Kachikwu and the labour union last year to reinstate 10 out of the 83 sacked workers as well as review the status of the remaining 73 workers.

The workers also complained about the current conditions of employment in the oil company where most jobs meant for Nigerians are now being given to foreigners.

The union then threatened that the picketing of the oil company would continue if ExxonMobil’s management fails to call for negotiation.

PENGASSAN said its strike action would cascade its operations nationwide which include withdrawing its members from all exploration and production activities.

The protests which began thirteen days ago, and their escalating nature prompted the formation of an arbitration panel to resolve the dispute regarding the wrongful termination of 83 unionised workers in December.

Previous protests have had little effect on Nigerian oil production, but Cheta Nwanze at Lagos’ SBM Intelligence, said the union had “now reached a breaking point” and that the demonstrations would begin having an impact on production “in the coming days.”

Earlier last week, it appeared both parties had made progress with resolving their differences, but The Daily Times gathered that negotiations broke down at the point of drafting an agreement.

“We respect the rights of our workforce and will continue to engage with them to resolve this situation, but remain committed to the safety of our personnel and security of our facilities,” Exxon spokesman, Todd Spitler, said in a statement over the weekend.

In previous statements, PENGASSAN said it wants financial compensation for the workers who lost their job.
“We want them to be brought back and if that is not possible, we want a proper severance package for them,” said Abel Agarin, the union’s leader.

Agarin led around 50 protesters in a demonstration in Lagos, while strike actions were held in Lagos, Bonny, Akwa Ibom, and Port Harcourt.