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Nigeria oil workers seek engagement on new joint venture payment

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Nigeria oil workers seek engagement on new joint venture payment

Oil workers have asked the Federal Government and the National Assembly to ensure that the various interest groups in the oil and gas industry are involved in the implementation of the new Joint Venture Cash Calls.

They also advised that workers should be consulted on efforts to pass the Petroleum Industry Governance Bill and to amend the Nigeria LNG Act.

The workers, under the aegis of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), said this at the end of its National Executive Council (NEC) meeting in Abuja.

While commending the government’s decision to exit the current JV Cash Calls arrangement, the workers said it led to the huge indebtedness to international oil companies and the attendant challenges associated with the system.

“The NEC-in-Session appreciates the Federal Government efforts in the payment of arrears of Joint Venture Cash Calls, particularly the establishment of a roadmap to clear outstanding Cash Calls arrears.

“The NEC-in-Session reiterates the need for the Federal Government to engage the labour unions in the implementation of the proposed new Joint Venture Cash Calls structure, which is scheduled to commence in January, 2017,” the union said.

On the recent attempt to amend the NLNG Act (Fiscal, Guarantees, Assurances and Incentives) by the House of Representatives, PENGASSAN said the consequences of the proposed amendment would impinge on the continued existence of the nation’s most productive public corporation.

It also noted that the proposed amendment would discourage inflow of foreign investment, with the loss of $25 billion investment, loss of 18,000 potential jobs, reversal of gains in gas flaring reduction and constrained NLNG’s development initiatives in the Niger Delta region.

The Association therefore advised the House of Representatives to seek wider input before commencing on the proposed amendment of the NLNG Act.

The group commended the recent efforts by the National Assembly to speed up the passage of the petroleum industry bill, saying the delay in passage of the bill had rather been a disincentive to investments in Nigeria’s oil and gas industry.

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