PENGASSAN Threatens to Shut Down Services over Oando’s Purchase of Agip’s Assets


Blessing Ibunge in Port Harcourt

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has threatened to withdraw its members from all offices and field locations over the purchase of Eni Nigeria and Nigerian Agip Oil Company Limited (NAOC) by Oando Plc.

The branch Chairman of PENGASSAN, Agip Group, Port Harcourt, Mr. Eyong Survival, who issued the threat yesterday, frowned at Oando’s acquisition of 100 percent of the shares of NAOC Limited and Eni Nigeria outright sale of its 20 percent equity share in NAOC JV to Oando without interfacing or pre-informing the union.

According to him, the union had met with the company’s management when the sale of NAOC JV assets to Oando filtered into the air, but the managing director denied any of such plans.

Survival lamented that the sale of NAOC JV would throw lots of its members into the labour market considering the present hardship in the country.

According to him, “The Managing Director of Eni Nigeria, Mr. Fabrizio Bolondi, invited the workforce to a meeting on September 4, 2023, and callously informed us that Eni has sold its 20 percent equity share in NAOC JV, comprising OML 60, 61, 62 and 63, covering parts of Rivers, Delta, Bayelsa, and Imo States to Oando Nigeria Limited, transferring all its assets and liabilities to Oando without recourse to outstanding financial obligations to the workers, vis-a-vis their employee savings plan, pension, and gratuity.

“It is imperative to note that the Union being the workers’ representative was not informed before the commencement of the sales agreement.

“Not long from the date, the Union, on hearing rumors of the sales of the assets, held a meeting with the management on July 12, 2023, where the question was put forward to Eni Nigeria Management if they had any plan of selling the NAOC JV assets to Oando or any other company, but the managing director vehemently denied any plan of selling the JV assets.

“Instead he made presentations on planned injection of IPP Phase 2 generated power to the national grid, as well as the possible conversion of OPL 245 to OML by the government.”

He said by the announcement of the sale of NAOC JV assets to Oando, over 3,000 indigenous workers may be thrown into the labour market as the details of their sales transaction were not made known.

 Survival said: “At the moment, a lot of NAOC workers have suddenly developed some health challenges as a result of that callous announcement made by the MD of Eni Nigeria. The Union’s position is for due process to be followed by Eni management.”

He also stated that the Union has ordered a total withdrawal of its members from all offices and field locations of the company until a proper agreement is reached with Eni Nigeria and Agip Group PENGASSAN.

“By that withdrawal action, gas supply to Indoranma has been affected; daily oil production on 30,000nbbls of crude oil has been suspended, and about 10mscf of LNG gas to NLNG has been cut off, as well as about 350MW of Okpai IPP power to the national grid has been shut down,” Survival said.

He explained further that prior to the shocking announcement of NAOC JV sale, the management had pulled out all Italian expatriates from the field locations.

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