John Doe
Wed, Sep 6, 2023 8:55 PM

Oil Workers Protest Sale of Nigerian Agip Oil Company

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Oil Workers Protest Sale of Nigerian Agip Oil Company
Oil workers in Nigeria have shut down the country's Brass crude export terminal in protest over plans by Italian firm Eni to sell its Nigerian Agip Oil Company (NAOC) subsidiary to local company Oando. The workers are demanding the NAOC sale be put on hold until they have been properly consulted and terms for transfer of services have been agreed. This protest highlights the ongoing challenges faced by Nigeria's oil and gas industry.

Oil workers in Nigeria have launched a protest against the planned sale of the Nigerian Agip Oil Company (NAOC) by Italian energy firm Eni to local company Oando.

The workers, organized under the oil and gas workers' union Pengassan, have shut down the Brass crude export terminal and other NAOC assets to demand a halt in the sale until they have been properly consulted and terms for the transfer of services have been agreed upon.

The protest comes after management at NAOC informed workers about the sale on September 4, the same day the deal was made public. This has led to allegations that the company had denied plans for the sale when worker representatives had raised concerns at a meeting in July.

The NAOC joint venture, which consists of Eni, the Nigerian National Petroleum Corporation (NNPC), and Oando, operates several key assets in Nigeria's oil and gas sector. This includes the Brass terminal, four onshore oil blocks in the Niger Delta, onshore exploration leases, flow stations, gas plants, and a stake in the Shell-operated SPDC joint venture.

While NAOC remains committed to the health and safety of its employees, the company has chosen not to comment on the workers' specific demands related to the sale.

The protest by oil workers is yet another challenge for Nigeria's oil and gas industry, which has been grappling with various issues, including declining production, pipeline theft, and security concerns in the Niger Delta region.

Eni's proposed sale of NAOC to Oando would increase Oando's stake in the joint venture to 40% and significantly boost its reserves. Oando had previously acquired a 20% stake in the NAOC joint venture when it purchased ConocoPhillips' Nigerian business in 2014.

The completion of the NAOC deal is still pending ministerial consent and regulatory approvals. Oando, which has recently initiated the process of delisting from the Nigerian and South African stock exchanges, is eager to move forward with the transaction.

The shutdown of the Brass crude export terminal has caused disruptions to Nigeria's oil exports, impacting both the country's revenue and its reputation as a reliable supplier.

Overall, the protest by oil workers highlights the need for transparent and inclusive decision-making processes within the Nigerian oil and gas industry. It also serves as a reminder of the complex challenges facing Nigeria as it seeks to revive and strengthen its energy sector.

Source of content: OOO News 2023-09-06 News

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