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Tag: PENGASSAN

  • Why Nigeria refineries are failing – PENGASSAN

    Why Nigeria refineries are failing – PENGASSAN

    The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has identified the reasons why Nigeria’s state-owned refineries are failing.

    The association said that the refineries are not failing because Nigerians lack the skills, but as a result of political interference, which denied workers the tools, resources, and enabling environment to deliver effectively.

    Mr Festus Osifo, the association’s President who stated this on Friday at the ongoing 4th PENGASSAN and Labour Summit (PEALS 2025), also identified widespread corruption and mismanagement as reasons for the failure of the refineries.

    The News Agency of Nigeria (NAN) reports the three days summit holding in Abuja is themed, “Building a Resilient Oil and Gas Sector in Nigeria: Advancing HSE, ESG, Investment and Incremental Production.

    Osifo said Nigeria’s energy future require more than skilled manpower and there is the urgent need for tools, policy stability, and supportive reforms to drive growth in the energy sector.

    According to him, during the COVID-19 pandemic, Nigerian workers successfully operated offshore platforms after expatriates departed.

    He said the development had proven that the country possessed skilled manpower capable of sustaining global-standard energy production without disruption.

    According to Osifo,  policy inconsistencies and political interference undermine investor confidence and cripple the nation’s oil and gas sector.

    He also expressed concerns over frequent changes to petroleum laws, warning they discourage vital investments.

    He added that predictability in fiscal regimes is key to attracting petrodollar into Nigeria’s economy and long-term infrastructure development.

    “We must have an industry that investors can predict in five or ten years. Constantly changing policies will only chase away investors and delay sectoral growth,” he said

    On training, Osifo urged both indigenous and international operators to prioritise worker capacity building.

    He said it would ensure that Nigerians remain globally competitive and prepared for the changing demands of the energy and labour markets.

    In a goodwill message the Secretary General of the Trade Union Congress (TUC), Mr Nuhu Toro, commended PENGASSAN’s foresight, describing the summit as a model platform for strategic dialogue in the energy sector.

    “This summit, is a testament to the foresight and strategic thinking required to navigate industry dynamics and their implications for organised labour,” he said.

    Toro urged other unions under the TUC to emulate PENGASSAN’s initiative.

    He said that modern engagement, dialogue, and innovation remain vital tools for advancing workers’ welfare and strengthening collective bargaining power.

  • PENGASSAN seeks justifiable fuel prices

    PENGASSAN seeks justifiable fuel prices

    The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to enforce a transparent pump pricing template.

    President of the union, Mr Festus Osifo, made the call at a World News Conference in Abuja on Monday.

    Osifo said the call became necessary seeing that petroleum marketers have continued to exploit Nigerians through inflated fuel prices even with the decrease in the price of crude oil.

    According to him, at the time crude oil was being sold at 60 dollars per barrel, petrol pump prices remained high at between N850 and N900 per litre, leaving consumers at a loss.

    “The unjustifiable pricing is due to NMDPRA not being able to carry out its oversight duties effectively. It is the function of the regulator to ensure that Nigerians are not exploited.

    “So we call on NMDPRA to have a platform where they can publish what the price ranges should be.

    “So, we call on them to be allowed to carry out that responsibility. We call on them to do everything possible to ensure that Nigerians are not exploited.

    “If this trend continues, it means that if the crude price comes down to 50 dollars per barrel, we will not see appreciable gains,” he said.

    He praised the federal government signing the Executive Order on the upstream oil and gas industry especially as it relates to the need for companies to reduce the cost of operations.

    “One of the challenges affecting us today in the Nigerian oil and gas industry is that the amount upstream companies spend in protecting their facilities, both on land, in the sea, shallow waters, deep waters, and others, is quite prohibitive.

    “For one installation, you have a minimum of three or four security vessels. You then have to pay for them on a daily basis.

    “You pay for the crew on a daily basis. You have to fuel them on a daily basis. Whereas in other countries, it is not like that,” he lamented.

    Osifo identified the above mentioned situation as one of the primary reasons international oil companies (IOCs) have been exiting Nigeria.

    While speaking on the persistent failure of Nigeria’s refineries to operate effectively, he reiterated the call on the federal government to adopt PENGASSAN’s recommendations made 15 years ago.

    According to him, the recommendations of the NLNG model, where government holds 49 per cent and private investors hold 51 per cent should be adopted.

    “We all understand the politics that comes in when it comes to national assets management.

    “That is why in the past 15 years or more, we have called on the government consistently to apply the NLNG model in the management of the refineries because the model works,” he said.

    He also explained that the union had reached a resolution with Sterling Oil Company following disputes over expatriate staff hiring practices.

  • PENGASSAN opens up on state of Port Harcourt refinery

    PENGASSAN opens up on state of Port Harcourt refinery

    The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has confirmed that the Port Harcourt Refinery has resumed production.

    Mr Festus Osifo, President of PENGASSAN, disclosed this while addressing newsmen at the end of the National Executive Council (NEC) meeting in Abuja on Tuesday.

    According to Osifo, the refinery rehabilitation was made possible through stringent financial oversight and the active involvement of unions in the project’s management.

    He noted that the refinery is producing products such as diesel, kerosene, and petrol through its distillation unit.

    Osifo attributed the past attempts to refurbish the refinery’s little progress to the lack of transparency and accountability.

    He commended the establishment of a steering committee, including representatives from PENGASSAN and NUPENG, to ensure transparency and accountability.

    Although the refinery’s functionality is a significant milestone, Osifo noted that the impact on fuel prices remained limited due to the devaluation of the naira.

    According to him, with the exchange rate at about N1,700 to 1 dollar, the cost of goods, including petroleum products, is bound to remain high.

    Osifo reiterated PENGASSAN’s call for adopting the Nigeria Liquefied Natural Gas (NLNG) ownership model for managing the nation’s refineries.

    He urged the government to involve reputable international oil companies with expertise in refinery management to achieve similar results for the nation’s refineries.

  • PENGASSAN condemns brutal assault of oil, gas workers

    PENGASSAN condemns brutal assault of oil, gas workers

    The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has condemned the brutal assault of its members in the oil and gas sector.

    The assault was allegedly carried out by military personnel and operatives of other security agencies.

    Mr Festus Osifo, President of PENGASSAN, said this in a statement he jointly signed with Mr Lumumba Okugbawa, General Secretary of the union on Friday in Abuja.

    According to the statement, PENGASSAN, strongly condemns the brutal and excessive use of force by the military and other security agencies.

    “They are hired by Dutchford E&P, Selective Marine Services and its Labour Contractors against oil and gas workers at the Oritsetimeyin Oil and Gas Rig.

    “This act negates the tenets of the Nigerian Constitution and all extant laws governing the operations in the nation’s oil and gas sector,”it said.

    The union also said that it was on record that these dompanies were always violating signed agreements reached with various parties.

    It said that this included the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on payments and other entitlements due to their workers dating back to 2022.

    “We warn that if the reports indicate that oil and gas workers are violently ejected from the Rig any date soon, PENGASSAN will deploy every arsenal at its disposal to frustrate such moves.

    “This unconscionable act represents a grave violation of human rights and known labour conventions. The use of military actions against unarmed workers is completely unjustifiable and disproportionate.

    “This is because, it is the Nigerian workers who have been subjugated to unfair workplace policies, including being paid meager wages while working in a hazardous environment, that should be the complainant,’”it said.

    The union therefore demanded for a full and transparent investigation into the incident, leading to the immediate arrest and prosecution of those responsible for ordering and carrying out the brutal assault.

    It said that the perpetrators must be held accountable for their actions under both national and international law.

    “Furthermore, we demand a guarantee of the safety and security of all oil and gas workers on the Rigs. We also demand a commitment from the relevant authorities to uphold the rights of workers and engage in peaceful conflict resolution,” it said.

     

  • PENGASSAN losses 4 members to helicopter crash

    PENGASSAN losses 4 members to helicopter crash

    The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has expressed shock over the tragic helicopter crash that claimed the lives of four of its members.

    Mr Festus Osifo, President of PENGASSAN said this in a statement  made available to newsmen on Friday in Abuja. Osifo said that PENGASSAN was deeply saddened by the death of its members, which occurred on the early hours of Thursday,  Oct. 24 in Rivers State.

    According to him, the deceased members, were valued members of the PENGASSAN family and dedicated professionals in the oil and gas industry.

    “Their contributions to the sector and to our association will be sorely missed. PENGASSAN extends its heartfelt condolences to the families, friends, and colleagues of the victims during this difficult time.

    “We share in their grief and offer our unwavering support, as we navigate this tragic event. We are committed to providing assistance to the bereaved families in any way possible,” he said.

    Osifo said the association was currently working to gather more information about the circumstances surrounding the crash and cooperating fully with the relevant authorities in their investigation.

    He, therefore, urged all parties involved to conduct a thorough and transparent investigation to determine the cause of the accident and put in place urgent measures to prevent future tragedies.

    “PENGASSAN calls on all its members everywhere, through the branches, to observe a moment of silence and reflection in honor of our fallen Comrades.

    “Their dedication and service to the Oil and Gas industry will never be forgotten. We will continue to update the public as more information becomes available,” he said.

  • PENGASSAN raise alarm about high infux of Indian expatriates into Nigeria

    PENGASSAN raise alarm about high infux of Indian expatriates into Nigeria

    The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), has queried high infux of Indian expatriates in the oil and gas industry in the country.

    Mr Festus Osifo, PENGASSAN’s President, said this at the closing of the 3rd edition of the three-day Energy and Labour Summit in Abuja on Friday.

    The   theme of the summit is: “The Future of Nigeria’s Oil and Gas Industry: Energy Mix, Energy Security, Artificial Intelligence, Divestment, and Crude Oil Theft”.

    Osifo said that the increasing dominance of expatriates, particularly Indian nationals in the sector  was alarming.

    “They are taking over low-level jobs, which is a blatant abuse of the expatriate quota system.

    “In Sterling Oil today, it will amaze you to discover that we have more Indians working there compared to the number of Nigerians.

    “In fact, up to vulcanizers, you have Indians carrying out such low jobs and functions in all their plants as operators and some are even gate keeping operators,”he said.

    Osifo  said that the union have been engaging the Nigerian Content Development Monitoring Board(NCDMB) to address the issue but to no avail.

    According to him, today Nigerians are looking for jobs, our graduates who are out from the universities are looking for work to do.

    “But we keep granting expatriate quota to these Indian companies and they have abused it, ”he said.

    He alleged that the companies have manipulated the system by registering numerous Shell companies to facilitate the influx of expatriates.

    He said that they have registered over 200 companies to perpetrate the act.

    “When they are bringing in 10 Indians, they will use one company. Tomorrow, when they are bringing in another 20, they will use another company.

    “So, if you check, you will discover that over 100 or 200 companies registered  spread these Indians across  board,” Osifo said.

    He said  that PENGASSAN had engaged in extensive stakeholder discussions over the past two years to address the issue without result.

    “What is left for us might probably be confrontation. We are fully prepared because we cannot be slaves in Nigeria.

    “Nigeria’s oil resources belong to Nigerians and it should benefit them first and foremost. It doesn’t belong to Sterling or any other,” he said.

    He called on the Federal Government to act fast and to protect Nigerian workers’ rights and opportunities.

    Osifo said that the number of Indian nationals employed at Indorama’s facilities in Port Harcourt surpasses that of Nigerians.

    He said  they were paid in U.S. dollars while Nigerian workers grapple with the effects of currency devaluation.

    “This situation is unacceptable and it must be addressed now,” Osifo said.

    He  urged  authorities concerned to take decisive action against companies  exploiting the expatriate quota system to the detriment of Nigerian workers.

  • Why fuel queues persist – PENGASSAN

    Why fuel queues persist – PENGASSAN

    The Petroleum and Natural Gas Senior Association of Nigeria (PENGASSAN) has identified reasons for persistent queues in filling stations across the country.

    Mr Festus Osifo, President of PENGASSAN, who disclosed the reasons while speaking at the ongoing 2024 PENGASSAN Energy and Labour Summit (PEALS 2024) in Abuja, identified weak and outdated distribution chains as some of the reasons for the queues.

    “The distribution chain is weak in the downstream sector of the oil and gas industry. That is why today, you see queues in most of the stations. The problem may be solved today, but tomorrow it will resurface.

    “Nigeria’s distribution chain is outdated and insufficient to meet the demands of its large population. There is no country in the world as big as Nigeria, with our population, that relies on a single point of product importation and uses trucks to distribute across the nation,” he said.

    Osifo also attributed insufficient supply of fuel across the filling stations in the country to bad roads and flooding, leading to scarcity. The  (PENGASSAN) President called for urgent reforms to address the challenge.

    He also called on the government to develop and strengthen the country’s value chain to ensure a more efficient and reliable distribution system. Osifo noted that without the improvements, the country would continue to face recurring fuel shortages.

    He said, other challenges I  the sector included, high cost of local production, which according to him, is 15 per cent to 20 per cent higher than in other parts of the world. He said the high production cost is partly due to the burden of security in the oil and gas companies.

    He urged the government to take over the security responsibilities from investors, to, significantly, reduce production costs. He also called on the government to strengthen laws and sanctions against those involved in oil theft. Osifo advocated harsher penalties to deter bad behaviours and encourage integrity within the industry.

  • Oil and gas workers express concerns over Nigeria’s N77trn debt

    Oil and gas workers express concerns over Nigeria’s N77trn debt

    The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) on Thursday in Abuja  expressed concerns over Nigeria’s N77 trillion public debt.

    Addressing the 7th triennial national delegates’ conference of the association, its president, Mr Festus Osifo, said the debt profile as at the first quarter of 2023 was mind-blowing.

    He noted that poor implementation of fiscal and monetary policies and policy inconsistencies worked against the economic growth and development of the country.

    “According to the Debt Management Office, Nigeria’s total public debt profile, representing domestic and external debt stocks of the 36 state governments and the FCT, currently stand at N77 trillion.

    “This is quite alarming, mostly when you compare the cost of servicing this debt to the revenue generated by government per annum.

    “In the 2023 budget for instance, we will be using virtually all the monies generated as a country in servicing our debt.

    “This is a calamity of the highest proportion unless we do all we can to increase the revenue base.

    “While we do not condemn borrowing, we insist that borrowed funds should not be used for consumption, but channelled into productive ventures and infrastructural development,’’ he said.

    Osifo also called on the incoming government to seek other approaches to revenue generation.

    He expressed concerns about the current state of the economy, saying what was expected was a steady growth in GDP; increased access to employment and diversification of the economy.

    The PENGASSAN president noted that Nigeria’s economy was confronted with challenges of structural imbalance, corruption, weak human capital development, inequality, security challenges and excessive dependence on oil revenue.

    He stressed that these were some of the key challenges that the incoming government should tackle with sound and coordinated strategy in consultation with relevant stakeholders and industrial experts.

    “We have talked a lot about diversification of the economy and this is the time for implementation as a matter of urgency.

    “The truth is that revenue from the oil and gas sector can no longer sustain us as a nation and this is the most auspicious time to walk our talk.

    “We commend on-going efforts of government in the agriculture sector and expect the tempo to be sustained in the entire value chain.

    “The efforts should be replicated in areas like solid minerals, tourism, and technology, among others.

    “Efforts must be made by the incoming administration to address the issues of multiple exchange rates as the arbitrage created is negatively affecting the economy.

    “We must put a stop to the use of `Ways and Means’ in enhancing government’s activities as this fuels inflation because it is not backed by value creation,’’ he stressed.

    Osifo also commended efforts being made in the completion of various gas-related projects.

    He listed the projects as the 614km-long pipeline from Ajaokuta to Kano, the Escravos Gas to Liquids project in Lagos and the gas transmission pipeline from Delta to Edo.

    He added that when completed, the projects would provide employment and also help in gas gathering and evacuation for domestic use.

    The theme of the conference is: “Equity and social justice advocacy for equal opportunities for all workers’’.

  • No basis for current petrol scarcity – PENGASSAN

    No basis for current petrol scarcity – PENGASSAN

    The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has said that there was no basis for the current scarcity and price increase of Premium Motor Spirits (PMS) across the country.

    The PENGASSAN President, Mr Festus Osifo and its Secretary General, Mr Lumumba Okugbawa, in a statement on Monday, regretted the hardship that Nigerians were being subjected to as a result of the scarcity and price increase.

    The statement said that data made available to the union showed  there was over 30 days PMS sufficiency in the country.

    “We understand that the parameters imputed into the old Petroleum Products Pricing Regulatory Agency and now Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) template has since changed.

    “This is because of some economic vagaries such as exchange rate fluctuation, vessel hiring cost and cost of AGO among others.

    “However, there is no sufficient justification for petrol to be selling for such highly inflated price, thereby subjecting the masses to further difficulties,“ the duo said.

    The duo urged the management of NMDPRA to compel all marketers and retailers to make the products available at the approved price.

    Both leaders also called on the management to  immediately mobilise all its staff in various locations across the country to monitor compliance.

    The leaders urged the management to revoke the licenses of any marketer who did not comply to serve as deterrent.

    “Should this collusion go unchecked, we will not hesitate to partner with other stakeholders in ensuring that Nigerians are not further exploited,“ the leaders said.

  • PENGASSAN urges FG to revoke licence of oil marketers selling above approved price

    PENGASSAN urges FG to revoke licence of oil marketers selling above approved price

    The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), has urged the Federal Government to revoke licences of oil marketers selling above approved pump price of Premuim Motor Spirit (PMS).

    PENGASSAN said the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) should immediately mobilise its staff in various locations nationwide to monitor compliance and anyone found wanting, should have their licences revoked to serve as a deterrent.

    PENGASSAN, in a statement on Monday by its National President, Mr Festus Osifo, said the call for the revocation of licences became urgent, following  persistent scarcity of PMS in the last six months.

    “Should this collusion go on unchecked, we will not hesitate to partner with other stakeholders in ensuring that Nigerians are not further exploited. A stitch in time saves nine,” he said.

    Osifo, while empathising with Nigerians on the hardship currently faced with the scarcity and drastic hike in PMS price, decried that one litre of PMS is being sold between N185 to N650, depending on the location and outlet.

    “While we understand that the parameters imputed into the old PPPRA and now NMDPRA template has since changed because of some economic vagaries such as exchange rate fluctuation, vessel hiring cost and cost of Automotive Gas Oil (AGO) amongst others.

    “There is no sufficient justification for PMS to be selling for such highly inflated price, thereby subjecting the masses to further difficulties.

    “Even though we have some good marketers who tend to play by the rules, others who are overbearing have deployed methods of creating artificial scarcities to hike the price of the product uncontrollably.

    “From data available to us from our members, there is over 30 days PMS sufficiency in the country; hence there is no basis for the current scarcity and hardship that Nigerians are being subjected to,” he said.

    He said the national leadership of PENGASSAN had been following up with its members in NNPC Trading Limited who were responsible for assigning the products to marketers.

    He said it has been following its teaming members from NMDPRA in various depots and terminals across the country on the need to carry out their functions expeditiously.

    He said these members were responsible for issuing cargo clearance, monitoring compliance, routing inspection, metering calibration/maintenance, accurate delivery to trucks and record keeping, among others.