Between Representatives and Industrial Action in Oil, Gas Sector

Last week Wednesday, the House of Representatives Joint committees on Petroleum (Upstream and Downstream) and Gas Resources resolved to summon the Petroleum Minister, MrsDeizeani Allison-Madueke, Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) Dr Joseph ThlamaDawah and leaderships of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) as well as the Nigerian Union of Petroleum and Natural Gas workers (NUPENG) over the looming crisis in the oil and gas sector in the country.

The committees’ resolve was informed by the action of workers of the NNPC and the Department of Petroleum Resources (DPR), who had on September 16th embarked on industrial action in protest against the demand by the National Pension Commission (PenCom) for the two organisations to stop in-house pension fund management (close) system and adopt the open pension system.

The workers, under the aegis of the PENGASSAN and NUPENG, in their protest had demanded, amongst other things, immediate steps to carry out turn-around maintenance (TAM) on the four refineries as agreed between government and the two unions as well as the restoration of crude supply to the refineries.

For the fear of what might be the lot of the populace if the strike action by the unions in the sector is allow to go on, the House Committees in a press statement signed jointly signed by the Chairman, Petroleum (Upstream), Honourable MurainaAjibola; Chairman, Petroleum (Downstream), Dakuku Peterside and Chairman, Gas Resources, Honourable BasseyEwa maintained, that the committees would not allow any strike action to cripple the nation’s oil and gas sector.  

The statement read in part, “The Joint Oil and Gas Committee of the House of Representatives is concerned by the strike action, as reported in the Media- by staff of the Nigerian National Petroleum Corporation (NNPC).Our concern is driven by the major role Oil and Gas plays in our economy; and the enormous damage any disruption in the system will entail for the Nigerian people.

“Alive to our constitutional responsibilities, the Joint House Committees on Oil and Gas have decided to intervene in this matter with a view to resolving whatever the issues may be. Accordingly, we have invited the Honourable Minister of Petroleum Resources, and the affected unions and relevant stakeholders in the sector to a meeting,” the statement said.

However, on the D-day of the meeting with the stakeholders none of the stakeholders showed up, a development that led the lead the chairman of the committees, Honourable Ajibola to read riot act to the Petroleum Minister and NNPC boss over their refusal to honour the committees invitation on strike action embarked on by the unions.

Particularly, members of the committees expressed bitterness over the tone of a letter sent to them by the management of the NNPC, saying that the ongoing strike embarked upon by oil workers was an internal matter of the Corporation which was being handled internally.

While addressing newsmen on the turn of event, Ajibola said “we are here for a meeting to intervene in the issue of strike by NNPC and other oil workers. And we do this for the purpose of Nigeria and Nigerians whom we represent. We know that petrol affects the lives of everybody in this country.

“In this matter, we are not meddlesome interlopers. So, when the NNPC’s GMD appears before us, we will take him up on that notion of internal affairs that should not be meddled in, ”he stated.

But, Honourable Peter Apkatason sounded a note of caution` that the action of the committees must not be such that aggravate the matter on ground, but a solution-seeking one for peaceful resolution.According to him, “Mine is a note of caution. I quite agree with my colleagues in wielding the big stick. But I will caution that whatever we do must be geared towards peace and not to aggravate the situation. Our actions are to bring the parties to the table and ensure peaceful resolution.

While the House committees were still waiting to hear from the stakeholders in the industry, a meeting between the stakeholders and the Federal Government led by the executive arm of government had already yielded positive result, as the aggrieved oil workers were said to have reached a truce on issues that resulted in the indefinite strike.

The truce reached by the Minister of Petroleum Resources and leaders of the NUPENG and PENGASSAN reportedly produced a six-point communiqué which read: “Withdrawal of PENCOM letter: The Honourable Minister informed the Unions that the PENCOM letter withdrawing the temporary license granted to NNPC to run Defined Benefit Scheme has been reversed.

“Closure of Pension Fund gap: The Honourable Minister affirmed that anticipatory approval has been given to the measures and timelines proposed by the NNPC Management to close the existing N86.5 billion Pension Fund gap on or before August, 2015.

“Pension fund sustainability measures: The Honourable Minister emphasised the need to embrace an international standard pension fund structure and framework so that after the Pension gap is closed, the framework will ensure that the pension fund is invested and managed to guarantee sustainability.

“Establishment of Ad-Hoc committee: It was agreed that a Committee comprising members drawn from NNPC Management, PENGASSAN, NUPENG, DPR, RSA, and CSLD will be established to work out the modalities and framework for sustaining the NNPC Pension Scheme, along the Oil and Gas Private Sector lines.

“Turn Around Maintenance (TAM) and crude oil supply to the refineries: The Honourable Minister affirmed that the issues of NNPC Crude Oil supply to the refineries, Turn Around Maintenance of the Refineries and other internal operational matters should be internally handled by the NNPC Management and the Staff Unions,” the communiqué read.