NPDC’s Oil Production To Drop As Workers Threaten To Shut Pan Ocean Oil Over Indebtedness

Oil production output by Nigerian Petroleum Development Company (NPDC), a subsidiary of Nigerian National Petroleum Corporation (NNPC) may drop by midnight today as oil workers in Pan Ocean Oil Limited, threatened to shut down the operations of the company.

Pan Ocean Oil Limited was recently acquired by Asset Management Company of Nigeria (AMCON) but being managed by NPDC.

The oil workers under the aegis of National Union of Petroleum and Natural Gas (NUPENG), and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) are threatening to down tools over their severance benefits.

They said their action is in protest against the non payment of their severance benefits by the Nigerian Petroleum Development Company (NPDC), a subsidiary of Nigerian National Petroleum Corporation (NNPC) having taken over the running of the company.

Other reasons adduced by the workers include employees Roll Over as well as legacy payment of PAYE tax and contributory pensions of over 33 months after deducting same from their salaries over the years by Pan Ocean Oil Limited.

According to a joint statement signed by PENGASSAN Chairman, Comrade Rex Aibangbee and his NUPENG counterpart, Comrade Aboy Udi and made available to newsmen over the weekend during a peaceful protests, they maintained that nothing will stop the members from executing the shutting down of the facilities of the acquired company by NNPC.

The labour unions noted that their members will commence the total shutdown of operations in Pan Ocean Oil in Benin, Edo State and Ogharaefe in Delta state to protest the non payment of their severance benefits and other entitlements.

“We are shutting down the Benin Operations Base Office of the company situated at KM 10 Sapele Road, Benin City, and the Ovade -Ogharefe Gas Plant/Flow station OML-98 facilities by midnight Monday (Today) if our demands are not met”, they said in the statement.

The twin oil unions lamented the plights of their employees since the take over of the company by Nigeria National Petroleum Corporation, following the revocation and handover of the OML-98 acreage to NPDC, its subsidiary.

The Unions also accused the management of Pan Ocean and the Nigerian National Petroleum Corporation (NNPC) of insincerity and impunity in handling the affairs of the employees of OML-98 since the gradual take over by NPDC without following due process.

“Having exhausted every avenue of dialogue which includes but not limited to several written letters and reminders to NAPIMS, NNPC, DPR, Ministry of Labour, PAN Ocean Management , the Unions are left with no option than to shut down the OML-98 Gas Plant Facility & Flow Station effective December 7th 2020, which would impact on crude oil production in thousands of bbls, activities of NPDC, OML 147 and the supply of over 55mscf of Gas to Egbin power station for national grid.

“A government that is proactive in this present world economic crises will not fold its hands and allow such oppression against workers that have laboured over 30years to build these facilities”, they maintained.

The President of NUPENG, Williams Akporeha, and his counterpart, Festus Osifo of PENGASSAN, Festus Osifo, threw their weights behind the protesting workers and urged the federal government to urgently intervene noting that the development runs contrary to Nigerian labour laws.

Vice Chairman of Warri Zonal Council, Prince Audu Oshiokhamele snr, who represented the National President of PENGASSAN, said the union is behind the agitations by their members in Pan Ocean Oil Limited.

Similarly, the National President of NUPENG, represented by the National Public Relations Officer, Cogent Ojobor warned on the consequences of allowing the workers to shut down the facilities and urged the Group Managing Director of NNPC, Malam Mele Kyari to urgently intervene and save the situation.

It will be recalled that the Asset Management Company of Nigeria (AMCON) had in July this year acquired Pan Ocean Oil Group over an alleged N240 billion debt.