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Oil Strike Against Shell in Gabon Ends

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7 April, 2008

A strike by energy workers against Shell-Gabon that stopped nearly one-half of all oil production and exports in the west African nation ended last week, 1 April, after direct mediation by Gabonese President Omar Bongo. The strike by 800 workers, which began in the early hours of 20 March by the National Organisation of Petroleum Workers (ONEP), ended a day after the union threatened a broader national strike.

ONEP reported its demands had been met. The strike occurred due to non-compliance by Shell-Gabon’s managing director over new work-time regulations, rules that had been set in place by an earlier government decree. The union was demanding the ouster of the managing director. Workers had been denied holiday leave.

Shell-Gabon is 75% owned by Royal Dutch Shell and 25% by the government. The 11-day strike halted 60,000 barrels-per-day of crude production in the Gamba-Ivinga-Totous oil fields, as well as production from the Toucan and Rabi fields. Shipments of crude were also halted at an oil terminal in Gamba, stoppages which cost Shell US$11 million per day.

The terminal was also shut to crude exports of Total-Gabon and Perenco, the latter a privately-held French oil and gas exploration and production company. The companies share the terminal with Shell-Gabon. Those amounts were estimated at 30,000 barrels-per-day. Gabon is the fifth largest oil producer in sub-Saharan Africa.