The Nigerian Petroleum Development Company  (NPDC) branch of Petroleum and Natural Gas senior staff association of Nigeria (PENGASSAN) AND Nigerian Union of Petroleum and Natural Gas worker (NUPENG) are currently on strike.

This dispute was caused by the transfer of operatorship of one of the assets, namely Oil Mining Lease (OML) 42 from NPDC to Neconde Energy Ltd. 
NPDC has 55% equity in this asset while our partner, Neconde Energy ltd has 45% equity.

When NPDC  took over operatorship in 2012, oil production in the asset was 14,000 net  barrels of oil per day (bopd). Presently NPDC has increased production to 31,000 net bopd.

NPDC has become the largest indigenous oil producing company with a total production capacity of 130,000 bopd.(Net Volumes)

Despite these achievements, the Hon Minister of Petroleum Resources, has recently (in February 2015) appointed Neconde the operator of this asset against the provisions of the Joint Operatorship Agreement (JOA).
The unions are protesting the appointment of Neconde as the operator and demands that NPDC continues as the operator of OML 42 as status quo ante because:

1. Neconde is not an oil producing company and lacks the technical capacity to operate the asset. It is a consortium which was incorporated in 2011 for the purpose of buying the 45% equity in OML 42. NPDC on the other hand, NPDC was incorporated in 1988 as an oil producing company and has been in the business of oil production since then. 
NPDC is now the largest indigenous oil producing company with a total production of 130,000 net bopd. 

2. Neconde has no previous operatorship experience. NPDC on the other hand currently is the operator of OML's 111, 65, 26, 30, 34, 40, 42 and 119 (offshore) with mumerous milestones including achieving 360 million standard cubic feet of gas in OML 34.( A feat never achieved in the whole time SPDC operated)

3. Neconde has not paid its equity cash calls up to date. It is indebted to the tune of N9.92 billion and $68.64 million. NPDC on the other hand has paid its cash calls up to date. 
NPDC cannot trust these individuals who are bent on taking over our commonwealth to handle the finances of the asset as operators.

The unions registered their grievances with the Management by issuing a 7-day ultimatum for the reversal of this change of operatorship from 30th April 2015 to 11th May, 2015. 

At the expiration of the ultimatum, the NNPC Group Executive Councils (GEC- the highest decision-making body of the unions in NNPC) directed the NPDC branch to begin a warning strike which ended by midnight of 15th May 2015.

The GEC further directed the NPDC branch to proceed on a shut-down of their production facilities with effect from 00.00 hrs of 16th May 2015.

That directive has been carried out and the production facilities are currently shut down.

The combined NUPENGASSAN of NNPC has joined the total shutdown of all NNPC facilities by 00:00 hours of Wednesday 20th May 2015.

Buhari my hero,fashola my role model

MOD lalastical
plzz move to front page, Nigerians deserve to know what the FG and Petroleum minister is trying to do with the countries assests!

[size=20pt]ONE CHANCE![/size]

Political strike. Somethin happened since feb 2015 and u're protestin in may 2015. Rubbish.

Why have those protesting unions waited till now to protest an appointment that has been done since February 2015.

ej77:
Political strike. Somethin happened since feb 2015 and u're protestin in may 2015. Rubbish.

I wonder how much ure being paid to be unreasonable and backward