PENGASSAN Threatens Strike Over Dispute with Sterling Oil Company

•Alleges firm violating Nigerian Content Act

Onyebuchi Ezigbo in Abuja

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) yesterday said it may be compelled to mobilise action to shut operations in the country’s upstream oil sector if nothing was done to get Indian oil firm -Sterling Oil Exploration and Energy Production Company Limited to adhere strictly to the country’s laws.

The association accused the oil company of gross violation of the country’s extant guiding operations in the oil and gas sector.

It said the company surreptitiously brought in over 10,000 Indians to occupy positions ordinarily reserved for Nigerians under the Nigerian Local Content Act.

PENGASSAN alleged that Sterling Oil company was recruiting many Indians to carry out jobs such as communication, panel operators, vulcanizers and cooks.

Addressing journalists shortly after a meeting of the association in Abuja yesterday, PENGASSAN President, Festus Osifo said Sterling Oil company has in several ways acted in clear violation of the Nigerian laws without any reprimand by relevant regulatory authority.

He said the association would continue to push to ensure that the Indian company complies with the laws of the land, adding that they would accept further deprivation the rights of teaming unemployed Nigerians to secure jobs.

“If we explore all these avenues of amicable resolution of the matter and nothing is done , we will declare a national strike,” he said.

Osifo said PENGASSAN was demanding among others that, “All foreigners taking up job of Nigerians must go and that the company must bring in Nigerians immediately to do that job.” 

Another demand by PENGASSAN was that all their members sacked by the company in their quest for good working condition should be reinstated.

In addition, PENGASSAN was demanding that all the workers should be allowed to assert their right to join trade union of their choice.

“We have brought this to the fore and all the relevant authorities are now aware of our demands, ” he said.

Osifo said PENGASSAN has substantial number of its members manning key sections of upstream oil and gas sector to carry out disruptive action.

He said Section 35 of the Nigerian Content Act, clearly states that all operators and companies operating in the Nigerian oil and gas industry shall employ only Nigerians in their junior and intermediate cadres or any other corresponding grades designated by the operator or the company.

According to the PENGASSAN president, all other companies are operating within the rules except Sterling.

“Then again, if you also look at section 32 of the same Act, it clearly stated that for each of the operations, an operator or project promoter may retain a maximum of 5 percent of management positions and may be approved by the board as expatriate positions to take care of investors’ interests.

 “But today Sterling has 100 percent expatriate workers.  This law says five percent. But today Sterling has 100 percent. The entire management structure of Sterling is manned by Indians.

“But when you come to other companies, when you come to other international oil companies (IOCs), you see, even in some cases, the managing directors of these companies, they are Nigerians,” he said

Osifo said the management of the company had exhibited insensitivity to the issues being raised by the association.

“Why are Nigerian institutions not acting? Why are the ministries not acting? Why is government tossing? Why are they allowing Sterling to be flagrantly abusing our laws?

“Why would they allow this Indian company to be doing whatsoever they like in Nigeria, what they cannot do in their country?

Osifo said that PENGASSAN’s leadership was invited to meeting yesterday by the government based on the dispute with Sterling Oil Exploration and Energy Production Company Limited

“We will be at the meeting and we will insist that Sterling must do what is right,” he said.