The newly elected Executives seem to have a major issue on their table as the Federal Government has said since its operation cost takes 46 per cent of its income from crude oil, it may necessitate job losses or zero profit unless there is understanding with workers.
President Muhammadu Buhari, represented by the Minister of State for Petroleum Resources, Chief Timipre Sylva at the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) 6th Triennial National Delegates’ Conference 2020 in Abuja disclosed this.
The theme of the conference was “The future of work post and energy transition.”He said “everything that needed to be said has been said by the GMD.”
The Nigerian National Petroleum Corporation (NNPC) Group Managing Director (GMD), Malam Mele Kyari had earlier told the oil workers in the conference that since there is need to cut down production, it means the industry has to reduce its activities, which is tantamount to trimming the workforce.
The NNPC boss, who dug into history on how far the oil market has nosedived, said since oil production costs $35 and now sells for $45 per barrel, it means the industry actually earns $10 per barrel.
He said it is certain that Nigeria cannot raise production to avoid price crash so to reduce its activities has become a necessary evil that would require a fewer hands to handle.
Buhari said the COVID-19 pandemic and progressive decline in crude oil prices in 2020 has made it imperative for Nigeria to aggressively pursue the development of non-oil economy and diversification of revenue sources as it braces up for a possible lower-for-longer crude oil price era.
According to him, the government is factoring the current reality into its reforms agenda. He revealed: “We are developing strategic survival measures to ensure economic sustainability and job security.”
He insisted that crude oil will remain prominent in global energy mix in the medium to long term, which means that massive opportunities are still available for members of the association.
The union has just elected its new executives with Mr Festus Osifo as its new president defeating Fredricks Rowland of Shell Petroleum Development. Osifo polled 200 votes while Rowland got175 votes.
Other candidates that emerged in other positions are: Duru Mathew, Deputy President; Ugwulo Kelechi, National IRO; Ononokpono Victor, National Treasurer; Udoh Anietie, National PRO.
The rest are Dan’azumi Kabiru, National Fin Sec; Chiwendu Ngozi, National WIP; Ogbuwu Charles, National Auditor 1; and Olabiyi Bosun, National Auditor.
