In view of the
obvious looming danger to the survival of the oil and gas industry and by
extension the Nation’s economy which has become so endemic, workers in the oil
and gas industry have issued a 60 day ultimatum to the Federal Government to
ensure ultimate security for all oil and gas installations, especially
pipelines in the country.
The workers, under
the aegis of the Petroleum and Natural Gas Senior Staff Association of Nigeria
(PENGASSAN) and the National Union of Petroleum and Natural Gas Workers
(NUPENG), decided to hand down the ultimatum to the government after
considering the massive loss of investments, income and jobs as a result of crude
oil theft in the country.
The two unions after
their Joint National Executive Council (NEC) meeting of NUPENG and PENGASSAN
under the umbrella called NUPENGASSAN in Abuja on Tuesday, said, “In view of
the obvious looming danger to the survival of the oil and gas industry and by
extension the Nation’s economy which has become so endemic, withhigh sense of
responsibility and patriotism, we have resolved to issue the Federal Government
of Nigeria, a 60-day ultimatum to effectively and holistically address and find
a lasting solution to this massive crude oil theft debacle.”
Speaking on massive
crude oil theft debacle, the Presidents of the PENGASSAN and NUPENG, Comrade
Babatunde Ogun and Comrade Igwe Achese respectively, condemned the helplessness
of the Federal Government in combating the huge level of crude oil theft.
According to Comrade
Achese, who is the Chairman of NUPENGASSAN, noted that crude oil theft has
reduced production of almost all the multinationals by more than 60 per cent
leading to shortages, shut in, high cost of operation, and threats to their
members jobs and discouragement to investments.
He alleged that there
is high level collaboration among the security agencies, politicians and highly
placed Nigerians in this racket of crude oil theft.
Comrade Ogun, who is
the alternate chairman of the joint body, observed that the increase in the
rate of crude oil theft and pipeline vandalisation could be as a result of
underfunding of the Nigerian Navy and other security agencies saddled with the
task of protecting and securing these vital national assets.
He therefore called
on the Federal Government to provide the necessary and adequate funding and
equipment to the security agencies saddled with this onerous task of securing
the Nigeria waterways.
The PENGASSAN
President noted that the Federal Government has not been doing enough in the
area of provision of adequate security for oil and gas installations in the
country, which increase the cost of production by the International Oil Companies
(IOCs).
He said, “Many
multinationals are divesting from the nation’s onshore assets due to
insecurity, which increase their cost of production. Shell, Chevron, Addax and
Petrobras are divesting and this endangers the jobs of our members in these
companies.
“Aside from losing
their crude and reducing their productions, the oil companies take care of the
cost of repairs of pipelines rupture by crude oil vandals, and also take care
of the costs of the environmental clean-up caused by these economic saboteurs.
All these add up to their cost of production.”
Comrade Achese called
on the government to step up adequate security and end crude oil theft in the
next two months or the unions will be forced to withdraw its members from oil
and gas installations.
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