NNPC Brokers Peace Deal Between TotalEnergies and Oil Unions, Resumes 275,000 BPD Oil Production

The Nigerian National Petroleum Company Limited (NNPC) announced on Sunday that it mediated a peace deal to resolve the dispute between the management of TotalEnergies and the Petroleum and Natural Gas Senior Staff Association (PENGASSAN) and Nigeria Union of Petroleum and Natural Gas Workers (NUPENG). As a result, the unions agreed to suspend the ongoing industrial action against TotalEnergies, leading to the immediate restoration of 275,000 barrels of crude oil per day. TotalEnergies is the operator of the NNPC/Total Joint Venture.

Key Points:

1. Peace Deal and Industrial Action Suspension:
   • NNPC, through a peace deal, facilitated the resolution of the rift between TotalEnergies and PENGASSAN/NUPENG.
   • The unions agreed to suspend the industrial action against TotalEnergies, resulting in the restoration of 275,000 barrels of crude oil production per day.
2. Background of the Dispute:
   • Organized labor accused Fedoz Nigeria Limited, an oil servicing firm, of sacking three PENGASSAN members without due process.
   • TotalEnergies faced allegations of refusing to increase workers’ salaries to align with the prevailing economic situation in Nigeria.
3. Negotiation and Commitment:
   • A marathon negotiation session chaired by Oritsemeyiwa Eyesan, Executive Vice President, Upstream, NNPCL, resulted in a communique where all parties committed to resolving the issues within an agreed framework.
   • The communique was signed by TotalEnergies MD/CEO, PENGASSAN President, and NUPENG President, witnessed by NNPC Ltd executives.
4. Stakeholders’ Commitment:
   • TotalEnergies MD/CEO, Matthieu Bouyer, and union leaders, Festus Osifo (PENGASSAN) and Williams Akporeha (NUPENG), expressed commitment to resolving the issues.
   • NNPC Ltd, EVP Upstream, Oritsemeyiwa Eyesan, and Chief Upstream Investment Officer, Bala Wunti, were present as witnesses.
5. Immediate Impact:
   • The suspension of the industrial action led to the immediate restoration of 275,000 barrels of crude oil per day.
6. Previous Statements:
   • TotalEnergies had acknowledged the industrial action related to the annual collective bargaining process and expressed commitment to engaging in negotiations with unions.

Conclusion:
NNPC’s intervention in mediating the dispute between TotalEnergies and the oil unions has resulted in the suspension of the industrial action and the resumption of significant crude oil production. The commitment of all parties to resolving issues within an agreed framework reflects a collaborative effort to maintain stability in the oil and gas sector, a critical component of Nigeria’s economy.

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