The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has confirmed that the sale of onshore assets by four major International Oil Companies (IOCs) did not lead to job losses or salary reductions for workers.
The companies are TotalEnergies, ExxonMobil, Eni, and Equinor who recently sold their onshore oil operations in Nigeria to local firms. Speaking at the National Executive Council meeting in Lagos, PENGASSAN President, Festus Osifo, said all employees affected by the sales retained their jobs and salaries without any negative impact.
Seamless Transition for Workers
Osifo explained that the divested assets, worth billions of dollars, were transferred to Nigerian companies last year. For example:
- Eni’s Nigerian Agip Oil Company (NAOC) was sold to Oando Plc.
- ExxonMobil’s Mobil Producing Nigeria Unlimited (MPNU) went to Seplat Energy.
- TotalEnergies transferred its assets to Chappal, while Equinor sold to Project Odinrin.
- Shell Petroleum Development Company (SPDC) was acquired by Renaissance Africa Energy Company Limited.
“All employees from these companies have moved to their new employers without losing their jobs or receiving lower salaries. In fact, their conditions of service have been fully protected,” Osifo stated.
He also assured that no worker would lose their job when employees of SPDC transition to Renaissance Africa Energy, adding that the association is working with both companies to ensure this.
Praise for NUPRC’s Transparent Oil Bids
Osifo commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for conducting transparent oil bid rounds in 2024. He described the process as one of the most open and fair exercises in the country’s history.
“The commercial bids were conducted in full view of the public, and we believe the winners were chosen based on competence and capability,” he said.
He added that PENGASSAN monitored the process to ensure only qualified companies with the resources and skills to develop the oil fields were selected.
Call to Boost Oil Production
Nigeria has over 37 billion barrels of oil reserves but produces less than 2 million barrels daily. Osifo urged the government to increase production to at least 4 million barrels per day.
“Higher production will create more jobs, generate more revenue, and grow our economy,” he emphasised.
PENGASSAN’s proactive approach has ensured that workers remain protected amid industry changes, while the association continues to advocate for a stronger oil and gas sector in Nigeria.
