Business PENGASSAN Expresses Fears Over IOCs Assets Divestment

Vunderkind

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The Petroleum and Natural Gas Senior Staff Association (PENGASSAN) has expressed its fears over International Oil Companies (IOCs) assets divestment from Nigeria's upstream countries.

Mr Seyi Gambo, the National Relations Officer of the association, told the News Agency of Nigeria (NAN) in Lagos that such divestments were threatening employment security in the nation’s oil and gas industry.

He said the divestments were mainly from Shell, Total and Chevron, that employ more than 20,000 Nigerians.

According to him, the IOCs’ were selling their stakes in shallow water oil assets in Nigeria.

Gambo also said that many of its members had been laid off since the IOCs began the exercise, adding that PENGASSAN’s members’ jobs were now at risk.

The PEGASSAN spokesman also said that the assets of major international operators were estimated at about $6.5 billion (about N1.04 trillion).

He also said that ConocoPhillips had already divested its assets, currently warehoused by Oando Energy Resources, while Shell had offered some oil blocks for sale.

Gambo blamed the Federal Government for the poor performance of the nation’s refineries, stressing that government failed to supply the refineries enough crude oil to refine and meet the nation’s refined fuel demand.

``The refineries have the capacity to refine the petroleum products that we need in this country. We have also said that if you do not give us crude, how do we refine?

``It is not our own work to get crude for the refineries, it is the work of the Federal Government because the crude has to go through pipelines and the pipelines are being vandalised every time. They are not secured.

``When we did marine haulage to Warri, instead of going through the pipeline, we took vessels to convey the crude – even when the refineries were working.

``Before Turn Around Maintenance (TAM), Warri could do 70 per cent of its installed capacity, if it has crude. Before TAM, Port Harcourt can do 65 per of its installed capacity,” he noted.

He said that ``as the Minister of Petroleum Resources said abroad, there is a cartel – a cabal, who are after their interest and not the interest of Nigerians.

``Our position is if the privatisation will make the managers in the refineries to get the money, as at when due and not that the money will hang in Abuja for years, fine.

``We do not want a situation where they will apply for money for TAM and it will take almost two years for the money to come out,” Gambo added
 
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