After NNPC’s Intervention, PENGASSAN Shelves Industrial Action Crippling Activities At Mobil Facilities

…Crude Oil Production To Hit 1.8 Million Barrels Per Day Before December

Following high-level mediation by the leadership of the Nigerian National Petroleum Company Limited, the Petroleum and Natural Gas Senior Staff Association of Nigeria has finally resolved to shelve the industrial action constraining approximately 300,000 BOPD production and export activities across Mobil locations.

The industrial action across all Mobil Producing Nigeria Unlimited (MPNU) and Esso Exploration and Production Nigeria Limited (EEPNL) facilities which commenced on 13th April 2023.

The strike effectively constrained 300,000 Barrels of Oil Production Daily (BOPD), as well as export activities forcing Mobil to declare a Force Majeure across all their locations, has finally been called off by PENGASSAN.

The NNPC said in a statement that the Group Chief Executive Officer, Mallam 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.

At a tripartite meeting in Abuja on Wednesday, 26th April 2023, between the leadership of Mobil, PENGASSAN led by the National President of the Union, Comrade Festus Osifo, and NNPC Ltd, at the instance of the GCEO, the Union’s grievances were holistically addressed and firm commitments were put in place to avoid a repeat of the regrettable situation.

Industrial relations broke down at Mobil as a result of the 2023 Collective Bargaining Agreement stalemate and proposed changes to the rota schedule of operations staff.

During the mediation, the NNPC Ltd leadership prevailed on both Mobil and the Union to shift grounds and find a common position in the interest of all parties and the Federation.

A pay adjustment acceptable to the Union and within the threshold of Mobil was collectively agreed upon and signed off, while both parties have also agreed to put together a working team that will have a 5-month timeline to review the proposals for a possible change in rota schedule for operations staff and parameters for implementation.

The statement said further that the GCEO implored the Union to always explore alternative means of dispute resolution rather than resorting to strike actions with far-reaching implications beyond the operations of the company involved in the dispute.

The Industrial action commenced in the aftermath of the recovery of National production 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.

With NNPC Ltd asserting its industry leadership and the current sustained efforts at curbing production losses, Nigeria’s crude oil production output is poised to hit 1.8 million barrels per day before the end of the year.

An improved production output implies significant economic benefits for the Country and all stakeholders.