The National Union of Petroleum and Natural Gas (NUPENG) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) have vowed to shut down existing oil and gas facilities in Edo and Delta States being operated by Pan Ocean Oil Limited.
Pan Ocean Oil Limited was recently acquired by Asset Management Company of Nigeria (AMCON) following colossal loans which the Festus Fadeyi-led Organization failed to off-set.
The oil workers who insisted on shutting down the operations of the Pan-Oecan by Monday midnight following the non-payment of their severance benefits to them accused the Faedyi-led Oil giant of inappropriate dealings and high-level of insensitivity
According to the aggrieved workers, the decision to disrupt oil production is to protest against the non-payment of their severance benefits by the Nigerian Petroleum Development Company (NPDC), a subsidiary of Nigerian National Petroleum Corporation (NNPC) having taken over the running of the company.
Other reasons adduced by the workers include employees Roll Over as well as legacy payment of PAYE tax and contributory pensions of over 33 months after deducting same from their salaries over the years by Pan Ocean Oil Limited.
According to a joint statement signed by PENGASSAN Chairman, Comrade Rex Aibangbee and his NUPENG counterpart, Comrade Aboy Udi which was obtained by The New Diplomat, the company has refused to meet up with its obligations to its staff.
Both labour unions(NUPENG and PEGASSAN) maintained that their members will commence the total closure of operations in Pan Ocean Oil in Benin, Edo state for failure to offset their severance package.
The Union leaders also said they will shut down operations in Ogharaefe, Delta state to protest the non-payment of their severance benefits and other entitlements.
The statement reads in part: “We are shutting down the Benin Operations Base Office of the company situated at KM 10 Sapele Road, Benin City, and the Ovade -Ogharefe Gas Plant/Flow station OML-98 facilities by midnight Monday (Today) if our demands are not met”.
The Unions also blamed the management of Pan Ocean and the Nigerian National Petroleum Corporation (NNPC) over what it described as poor handling of the affairs of the employees of OML-98 since its take over by NPDC.
The statement added: “Having exhausted every avenue of dialogue which includes but not limited to several written letters and reminders to NAPIMS, NNPC, DPR, Ministry of Labour, PAN Ocean Management, the Unions are left with no option than to shut down the OML-98 Gas Plant Facility & Flow Station effective December 7th 2020, which would impact on crude oil production in thousands of bbls, activities of NPDC, OML 147 and the supply of over 55mscf of Gas to Egbin power station for national grid.
“A government that is proactive in this present world economic crises will not fold its hands and allow such oppression against workers that have laboured over 30years to build these facilities”.
Vice Chairman of Warri Zonal Council, Prince Audu Oshiokhamele snr, who represented the National President of PENGASSAN, said the union is fully in support of the agitations by their members in Pan Ocean Oil Limited to shut down operations of the company.
In the same vein, NUPENG National Public Relations chief, Cogent Ojobor urged the federal government to mediate and help address the issues rather than allowing Pan Ocean workers to shut down Oil and gas facilities.
It would be recalled that the Asset Management Company of Nigeria (AMCON) had in July 2020 taken over forcefully Pan Ocean Oil Group over an alleged N240 billion indebtedness which the Fadeyi-led organization could not offset.