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PENGASSAN members stage mass withdrawal amid controversial Eni/Agip-Oando deal

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has withdrawn its members from offices and oil fields because they were not carried along in the sale plan of Eni/Agip assets to Oando Plc.

Eyong Survival, the Branch Chairman, of Agip Group of PENGASSAN, in Port Harcourt, disclosed this while speaking in Rivers State, on Tuesday, September 5. 

According to Survival, over 3,000 indigenous workers could be thrown into the labour market as the details of the Eni/Agip and Oando Plc sales transaction were not made known. 

Survival said: 

  • “The Managing Director of Eni Nigeria, Mr. Fabrizio Bolondi, invited the workforce to a meeting on September 4, 2023, and callously informed us that Eni has sold its 20% equity share in NAOC JV, comprising OML 60, 61, 62 and 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-a-vis their employee savings plan, pension and gratuity. 
  • “It is imperative to note that the union, being the workers’ representative, was not pre-informed before the commencement of the sales agreement. 
  • “Not long from date, the union on hearing rumours of the sales of the assets, held a meeting with the management on July 12, 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 the possible conversion of OPL 245 to OML by the government. 
  • “At the moment, a lot of NAOC workers have suddenly developed some health challenges due to 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. 

Impact of members’ withdrawal 

Eyong Survival made it clear that the withdrawal of PENGASSAN members has already affected the following: 

  • The gas supply to Indorama has been affected 
  • Daily oil production of 30,000 barrels of crude oil has been suspended 
  • About 10 million standard cubic feet (mscf) of liquefied natural gas (LNG) to the Nigeria Liquefied Natural Gas (NLNG) Limited has been cut off  
  • About 350 megawatts (MW) of Okpai IPP power to the national grid has been shut down 

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