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Oil production may suffer decline as Addax workers begin strike

By Gloria Nwafor
29 July 2022   |   4:03 am
The nation’s oil production might suffer further decline of 22,000 barrels per day, as employees of Addax Petroleum Development Nigeria have downed tool over alleged anti-labour practices.

Addax Petroleum

The nation’s oil production might suffer further decline of 22,000 barrels per day, as employees of Addax Petroleum Development Nigeria have downed tool over alleged anti-labour practices.

The workers had threatened to shut all the company’s operations, including oil wells, valves crude lifting and export terminals, saying attempts to get the management to the negotiation table failed.

The striking workers, who are members of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), said the management refused to engage them on labour related issues after announcement of the revocation of licences by the Federal Government.

It was gathered that an agreement was reached that a financial exit settlement would be executed at expiration of Addax Petroleum’s PSC agreement for OML 123 and 124 by July 1, 2022.

However, the workers alleged that management has, so far, rebuffed their call for execution of the settlement and other employee-related issues.

Senior Assistant Secretary General, Lagos Zone of PENGASSAN, Babatunde Oke, confirmed that the strike was embarked upon due to management’s refusal to engage the association on the settlement earlier agreed on.

He claimed that the Federal Government had done everything possible, through the National Petroleum Investment Management Services (NAPIMS), to ensure the issues were settled amicably.

The Guardian gathered that Addax faced revocation of licences under the then Department of Petroleum Resources (DPR) in March 2021. The regulatory agency claimed the licences were revoked following refusal by Addax to fully develop affected assets. The agency alleged that this robbed government of potential revenue.

DPR, now Nigeria Upstream Petroleum Regulatory Commission (NUPRC), claimed that the average profile of the assets showed that oil reserves have remained essentially flat, as Addax never made efforts to grow the reserves, adding that crude oil in all three producing assets had been declining over the years because of inadequate investment by the company.

Efforts to get a reaction from Addax were unsuccessful as calls to the firm were not picked.