Bloomberg News

Nigerian Oil Union Calls Three-Day Strike Over Welfare Concern

July 01, 2013

Nigeria’s manager-level oil-worker union called a “three-day warning strike” to press for improved welfare and better severance allowances for members.

“All service companies to go on full-blown strike” starting July 4 and “a systematic stoppage of loading vessels for export at the oil terminals” will begin on July 5, Bayo Olowoshile, general secretary of the Petroleum and Natural Gas Senior Staff Association of Nigeria, or Pengassan, said today in an e-mailed statement. All onshore and offshore locations have been placed on red alert, he said.

Pengassan also want the government to expedite passage of a new petroleum industry law, check pipeline sabotage and intervene in a tax dispute between the maritime regulator and Nigeria LNG Ltd.

Nigeria is Africa’s largest oil producer and a major supplier of U.S. imports. Royal Dutch Shell Plc (RDSA), Exxon Mobil Corp., Chevron Corp. (CVX:US), Total SA and Eni SpA (ENI) run joint ventures with the state-owned Nigerian National Petroleum Corp. that pump about 90 percent of the country’s crude. In the past, Pengassan, which represents about 24,000 oil workers, has called off strikes before they started after assurances from the government.

The planned warning strike will last until the end of July 6, Olowoshile said.

The blue-collar National Union of Petroleum and Natural Gas Workers, or Nupeng, walked off their jobs today in a three-day strike to protest “unfair labor” practices by Shell, Chevron and Eni units, Isaac Aberare, general secretary of Nupeng, said by phone from Lagos, the capital.

Nigeria produced about 1.83 million barrels of crude a day last month, the least since March, according to a Bloomberg survey.

To contact the reporter on this story: Elisha Bala-Gbogbo in Abuja at ebalagbogbo@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


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