Thursday, 7 July 2016

Nigeria: Oil Workers Insist On Strike, Vow to Shut Down All Operations


The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) said on Wednesday it would go ahead with its planned nationwide strike from Thursday.
The group's spokesperson, Emmanuel Ojugbana, said chairmen and secretaries in its four zones and branches have concluded plans to ensure a complete shutdown of the country's oil and gas industry operations and activities.
On Monday, PENGASSAN had directed its zonal leaders to sensitize members about the planned strike over "unresolved issues" affecting the smooth operation of the oil and gas industry.
Mr. Ojugbana said since the directive, its members have been meeting to fine-tune strategies towards the strike, with its key officers holding their final meeting on Wednesday.
Furttermore, Petroleum Club, an association of chief executive officers of oil and gas companies, both indigenous and foreign, has raised alarm that the nation's economy is seriously under threat, following the National Assembly's determined efforts to amend the Nigeria Liquefied Natural Gas (NLNG) Act.
The association, which described the intended legislative action as an adventure in the wrong direction, warned that the proposed amendment would have far reaching negative consequences not only for the Liquefied Natural Gas (LNG) business, but also for the entire petroleum industry in the country.
These oil and gas firms' chief executive officers pointed out that if the proposed amendment of NLNG Act sailed through, more oil companies and international lenders would no longer view Nigeria as a country in which they could have confidence in the fiscal and commercial terms granted to investors.
The Chairman of the Senate Committee on Niger Delta, Senator Peter Nwaoboshi, who demanded for the amendment of NLNG Act, had premised his reason on the gas company's refusal to pay dues to the Niger Delta Development Commission (NDDC) since the last 16 years.
Nwaoboshi said: "It is not whether that they contributed certain percentage. The point is that they had refused to obey the law since year 2000. We want to know those who are contributing to the agency.
"We have asked the Managing Director of the NLNG, Mr. Babs Omotowa, and he said that they have not been contributing money to the NDDC. They showed us a Supreme Court judgment, which described NLNG as a gas processing company and that there is a Gas Act that came before that of NDDC Act.
"They argued that the NDDC Act has not repealed the Gas Act. The NLNG claimed that the Gas Act has given them tax holiday. We are lawmakers and we are going to revisit the two Acts. We will go into the root of the matter. We don't just make laws for the purpose of making it," he stressed.
The Minority Leader of the House of Representatives, Honourable Leo Ogor, while arguing on this same issue, hinged his reason on untold environmental and health havoc wrecked on the people of the Niger Delta.
Ogor said: "The only way we can solve this problem is to bring relevant amendments to the Act because our people have suffered so much and I said that it is very important that we appreciate the enormity of the danger present in the region for us to act quickly and as a people, hold the NLNG responsible for unnecessary gas flaring using this amendment.
"The amendment to this Act is aimed at redressing the great injustice that the NLNG has meted to the people of the Niger Delta region for almost 27 years now. To partly or completely rejuvenate the environment, the NDDC establishment Act, specifically section 14 (2)(b), stipulates that 3 per cent of the total annual budget of any oil producing company operating onshore and offshore in the Niger Delta area, including gas processing companies like NLNG, shall pay the said percentage into the funds of the Niger Delta Development Commission. WORLD NEWS CENTER
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