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13 September, 2006
COMMUNIQUE ISSUED AT THE END OF THE JOINT NATIONAL EXECUTIVE COUNCIL (NEC) MEETING OF THE PETROLEUM AND NATURAL GAS SENIOR STAFF ASSOCIATION OF NIGERIA (PENGASSAN) AND THE NATIONAL UNION OF PETROLEUM AND NATURAL GAS WORKERS (NUPENG) AT ROYAL MARBLE HOTEL BENIN CITY AUGUST 30, 2006.
The Joint National Executive Council (NEC) of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and National Union of Petroleum and Natural Gas Workers (NUPENG) met on Wednesday August 30, 2006 in Royal Marble Hotel, Benin City. After an exhaustive deliberation on major national, industry, labour and industrial relations issues, the Joint NEC-in-Session resolves as follows:
VIOLENT DIMENSION TO THE NIGER DELTA CRISIS
The Joint NEC-in-Session frowns at the heightening and unabating spate of abduction, hostage-taking and violent attacks in the Niger Delta by restive youths under banner of continued deprivation and neglects of the area by successive governments.
The Joint NEC notes with dismay and apprehension that the genuine agitation of the Niger Delta people has been criminalised, and made an avenue for ransom seeking activities, and disruption of economic life and welfare of the people in the region.
The Joint NEC-in-Session notes with concern the incessant abduction of expatriate workers even from night-clubs in the center of the township which has now resulted in most firms threatening to pull out of the Niger Delta – a situation that will compound employment problems, increase crime rate and compromise the much sought investment drive to the Niger Delta in particular and Nigeria in general.
The Joint Meeting regrets that government’s poor response has not helped matters leading to deepening insecurity in the region as the nation continues to witness more abduction of oil workers, hostage-taking and overrunning of oil installations and pollution of the environment in the region.
The Meeting notes the hypocritical and non-challant attitude of the Niger Delta State Governments and their apparatus in the deteriorating state of insecurity and criminality which now pervades the entire region.
The Joint NEC-in-Session views in very strong terms and with heavy heart that apathy on the part of government in dealing decisively with the Niger Delta agitations which has resulted in the killing of Comrade Nelson Ujeya – a grievous fratricidal sacrifice that arose from applying a negative approach to a genuine cause and concerted vanguard for justice in Niger Delta Region.
The Joint NEC-in-Session is appalled that our communities in the Niger Delta known for hospitality and communal discipline have now lent their once peaceful domains for criminal activities and lawlessness
VIOLATION OF DUE PROCES ON THE SALE OF ELEME PETROCHEMICAL COMPANY LIMITED (EPCL)
The Joint NEC-in-Session expresses shock on the flagrant abuse and manipulation of the Memorandum of Understanding reached with the stakeholders on the sale and equity participation of Core Investor and Government at 51% : 49% which without consultation was reversed to 75% : 25% respectively.
The Meeting noted that due diligence was not conducted on the Core Investor – Indorama Company which was why a Company that was registered in Thailand in 2003 was allowed to bid for a company of the magnitude of EPCL for a ridiculous offer of $225 million for an asset of $1.8 billion.
Consequently, Joint NEC-in-Session demands that the sale of EPCL should be repudiated and Indorama should be made to forfeit all payments fraudulently made in this regard.
STATE OF REFINERIES/PIPELINE VANDALISATION
The Joint NEC-in-Session notes with regrets the adverse effect of pipeline vandalisation on the flow of crude and petroleum products to our Refineries and depots all over the Federation which had affected supply and distribution of petroleum products.
The Meeting expresses displeasure on Government’s reluctance to secure and maintain the pipelines, thereby abdicating its responsibility to other stakeholders in the industry.
The Meeting believes that the current posture of Government in this respect negates the essence of Deregulation Policy to localise the production of petroleum products.
The Meeting vehemently condemns the massive importation of refined petroleum products instead of emphasizing on local refining.
The Meeting notes that the Refineries now serve as conduit for transportation and sale of imported petroleum products.
PURPORTED CONVERSION OF PETROLEUM TRAINING INSTITUTE (PTI) TO A CAMPUS OF THE UNIVERSITY OF BENIN
The Joint NEC-in-Session frowns at the violation of the Extant Act that established the Petroleum Training Institute (PTI) to provide middle level manpower to the Oil and Gas Industry.
The Meeting notes the current move to rather affiliate the Institute to UNIBEN instead of providing it with adequate funding, staffing, and equipment to meet the manpower demand of the Industry.
The Meeting calls on Government to retain the current status of PTI as an autonomous specialised Institute and should upgrade it to International Standard as enshrined in the Act that established it.
ENABLING ACT FOR DEPARTMENT OF PETROLEUM RESOURCES (DPR) AS AN AUTONOMOUS PETROLEUM INSPECTORATE COMMISSION
The Joint NEC-in-Session hereby calls on Government to urgently grant autonomy to the Department of Petroleum Resources to enable it play its role effectively as Oil and Gas Industry Regulator.
RESOLUTION:
From the foregoing therefore, the Joint NEC-in-Session hereby resolves that it can no longer fold its hands and watch the viable industry in Nigeria slide into a state of anomie.
Consequently, the Joint NEC-in-Session henceforth agrees to undertake the following measures to protect its members’ interest as follows:
1. The Joint NEC-in-Session directs that with effect from Wednesday 13th September 2006, all members of NUPENG and PENGASSAN should embark on a 3-day Warning Strike.
2. The Joint NEC-in-Session agrees that if after the 3-day Warning Strike, Government fails to address the issues raised in this Communique and provide a peaceful and safe environment in the Niger Delta and other parts of the country for Oil Workers in particular and Nigerians in general to go about their lawful duties, NUPENG and PENGASSAN will have no other option but to withdraw their services indefinitely.