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The union’s strike, which commenced on April 13, 2023, effectively constrained 300,000 Barrels of Oil Production Daily (BOPD), as well as export activities, forcing Mobil to declare a Force Majeure across all their locations.
The suspension of the strike followed a high-level mediation by the leadership of Nigerian National Petroleum Company Limited.
The Group Executive Officer of NNPCL, Mallam Mele Kyari, has successfully led mediation efforts between the union and Mobil through a series of meetings and engagements for an immediate and unconditional return to work and resumption of production and export activities across all Mobil locations in Nigeria.
Industrial relations broke down at Mobil as a result of the 2023 Collective Bargaining Agreement stalemate and proposed changes to the rota schedule of operations staff.
During the mediation, the NNPCL leadership prevailed on both Mobil and the PENGASSAN to shift grounds and find a common position in the interest of all parties and the Federation.
A pay adjustment acceptable to the Union and within the threshold of Mobil was collectively agreed upon and signed off, while both parties have also agreed to put together a working team that will have a five-month timeline to review the proposals for a possible change in rota schedule for operations staff and parameters for implementation.
Furthermore, Kyari implored PENGASSAN to always explore alternative means of dispute resolution rather than resorting to strikes with far-reaching implications beyond the operations of the company involved in the dispute.
The Industrial action commenced in the aftermath of the recovery of national production from an all-time low of sub-one million barrels of crude oil production per day in July 2022 to over 1.67 million barrels per day in March 2023.
With NNPCL asserting its industry leadership and the current sustained efforts at curbing production losses, Nigeria’s crude oil production output is poised to hit 1.8 million barrels per day before the end of the year, which will bring about significant economic benefits for the country and all stakeholders.
