CEM REPORT, ENERGY | The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has called off its strike which commenced on April 13, 2023.
The strike was called off after a tripartite meeting in Abuja on Wednesday, April 26, 2023, between the leadership of Mobil, PENGASSAN led by the National President of the union, Comrade Festus Osifo, led by the Nigerian National Petroleum Company Limited (NNPCL).
The strike across Mobil Producing Nigeria Unlimited (MPNU) and Esso Exploration and Production Nigeria Limited (EEPNL) facilities, effectively constrained 300,000 barrels of oil production daily (BOPD).
The strike eventually forced Mobil to declare a force majeure across all its locations.
PENGASSAN engaged in the strike action as a result of the 2023 collective bargaining agreement stalemate and proposed changes to the rota schedule of operations staff by Mobil.
It is worth noting that the industrial action commenced just as the nation recovered from an all-time low of sub-one million barrels of crude oil production per day in July 2022 to over 1.67 million barrels per day in March 2023.
The Group Executive Officer of NNPCL, Mele Kyari, successfully led mediation efforts between the union and Mobil through a series of meetings and engagements for an immediate and unconditional return to work and resumption of production and export activities across all Mobil locations in Nigeria.
He appealed to both parties to shift grounds and find a common position in the interest of all parties and the federation.
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At the close of the meeting, a pay adjustment acceptable to the union and within the threshold of Mobil was collectively agreed upon and signed off.
Both parties have also agreed to put together a committee with a five-month window to review the proposals for a possible change in the rota schedule for operations staff and parameters for implementation.
Nigeria’s crude oil production output is poised to hit 1.8 million barrels per day before the end of the year, which will bring about significant economic benefits for the country and all stakeholders.
