The Nigerian National Petroleum Company Limited (NNPC) has successfully mediated a dispute between Total Energies, the operator of the NNPC/Total Joint Venture, and two labor unions – the Petroleum and Natural Gas Senior Staff Association (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG). The unions had accused Total Energies of unfair labor practices, leading to industrial action and a temporary halt in oil production. The NNPC’s intervention resulted in a peace deal, the suspension of the industrial action, and the immediate restoration of 275,000 barrels of oil per day production.
- Dispute Background:
- PENGASSAN and NUPENG accused Total Energies of unfair labor practices, prompting industrial action.
- The dispute centered on alleged anti-labor practices and the disengagement of workers without due process.
- Peace Deal Mediation:
- NNPC facilitated negotiations between Total Energies, PENGASSAN, and NUPENG.
- The negotiation session, chaired by NNPC’s Executive Vice President, resulted in a communique committing all parties to resolving the issues within an agreed framework.
- Resolution Impact:
- The unions agreed to suspend the industrial action following the peace deal.
- As a result, 275,000 barrels of oil per day production from the NNPC/Total JV were immediately restored.
- Union Concerns:
- PENGASSAN had accused Total Energies of budgeting workers’ salaries in naira but holding the funds in dollars.
- Workers demanded adherence to collective bargaining agreements and proper procedures for employee disengagement.
- Commitment to Resolution:
- The communique reflected a commitment from all parties to address the issues raised and work within an agreed framework.
- NNPC played a pivotal role in brokering the peace deal and restoring oil production.
NNPC’s successful mediation in the Total Energies dispute highlights the role of the national oil company in addressing industry-related challenges and ensuring the continuity of oil production. The resolution signals a commitment from both the company and labor unions to work within established frameworks and resolve issues through negotiation and dialogue. The restoration of oil production contributes to the stability of Nigeria’s oil sector.