In response to Oando PLC’s acquisition of Eni Nigeria and Nigerian Agip Oil Company Limited (NAOC), the Natural Gas Senior Staff Association of Nigeria has threatened to remove all of its members from all offices and field locations.
Comrade Eyong Survival, the Branch Chairman of the AGIP Group PENGASSAN Port Harcourt, who issued the threat, disapproved of Oando’s purchase of all of the shares of the Nigerian Agip Oil Company Limited (NAOC Ltd.), as well as Eni Nigeria’s outright sale of its 20% equity stake in the NAOC Joint Venture to Oando without consulting or informing the Union first.
He claims that when the sale of NAOC JV assets to Oando first came to light, the Union had a meeting with the company’s management, but the managing director flatly rejected any such plans.
Comrade Survival decried that the sale of NAOC JV will throw lots of its members into the labour market considering the present hardship situation in the country.
He said: “The Managing Director of Eni Nigeria, Mr. Fabrizio Bolondi, invited the workforce to a meeting on the 4 September 2023 and callously informed us that Eni has sold its 20% equity share in NAOC JV, comprising OML 60, 61, 62 & 63, covering parts of Rivers, Delta, Bayelsa and Imo States to Oando Nigeria Limited, transferring all her assets and liabilities to Oando, without recourse to outstanding financial obligations to the workers, vis-avis their employee savings plan, pension and gratuity.
“It is imperative to note that the Union being the worker’s representative was not pre-formed before the commencement of the sales agreement.
“Not long from date, the Union on hearing rumors of the sales of the assets, held a meeting with the Management on 12 July 2023, where the question was put forward to Eni Nigeria Management if they had any plan of selling the NAOC JV assets to OANDO or any other Company, but the Managing Director vehemently denied any plan of selling the JV assets.
“Instead the MD made presentations on the planned injection of IPP phase 2 generated power to the national grid, as well as, possible conversion of OPL 245 to OML by the Government.
“By the announcement of the sale of NAOC JV assets to OANDO, over 3000 indigenous workers may be thrown into the labour market as the details of their sales transaction were not made known.
“At the moment, a lot of NAOC workers have suddenly developed some health challenges as a result of that callous announcement made by the MD of Eni Nigeria. The union position is for due process to be followed by eni Management.
“The Union has ordered a total withdrawal of her members from all offices and field locations of the company until a proper agreement is reached with Eni Nigeria and AGIP Group PENGASSAN.
“By that withdrawal action, gas supply to Indoranma has been affected, daily oil production on 30,000nbbls of crude oil has been suspended, and about 10mscf of LNG gas to NLNG has been cut off, and about 350MW of Okpai IPP power to the national grid has been shutdown”.
He pointed out that prior to the shocking announcement of the NAOC JV sale, the Management had pulled out all Italian expatriates from the field locations.
Wale Tinubu, group chief executive of Oando PLC, commented on the acquisition of AGIP Oil, saying, “The synergies established by this merger will open unmatched prospects for us to re-align expectations, improve efficiency, optimise resource allocation, and considerably increase output.
“Furthermore, it aligns with our strategy of acquiring, enhancing, appraising, and efficiently developing reserves. Today’s announcement is not just an important milestone for the future of Oando; it brings to bear the important role indigenous actors will play in the future of the Nigerian
upstream sector.
“Having achieved this significant milestone, we look forward to closing the transaction and harnessing the full potential of the enhanced platform to accrue value for our local communities, stakeholders, and shareholders,” he said. Click the below video link coverage of where PENGASSAN addressed the union.
- https://youtu.be/w2A4pRQjXsY?si=yzqbvh317XHkCg3v
