Page 9 - AfrOil Week 42 2021

AfrOil POLICY AfrOil

Nigeria’s DPR revokes licences of

NOV subsidiaries amid labour dispute

NIGERIA NIGERIAN authorities have reportedly revoked PENGASSAN and relevant government agen-
the operating licences of two subsidiaries of Tex- cies, including the Federal Ministry of Labour
as-based National Oilwell Varco (NOV), citing and Productivity. The parties then finalised a
“unrepentant flouting of rules and regulations” CBA in July 2021, but one of NOV’s represent-
governing the oil and gas industry and “anti-la- atives has refused to sign it, thereby putting the
bour infractions.” company in violation of local labour laws and
According to local press reports, the Depart- regulations.
ment of Petroleum Resources (DPR) withdrew NOV paid a $250,000 fine related to these
the licences held by NOV Oil and Gas Services labour disputes in early 2021 and had a second
Nigeria and NOV Oilfield Solutions. “The can- fine of $250,000 imposed in late September.
cellation of the licences was the height of the DPR has also directed that the workers termi-
sanctions against the company for its insensi- nated earlier by the US company’s subsidiaries
tivity and lack of respect for national and inter- be recalled and reinstated. ™
national labour laws, conventions, rules and
regulations,” the Nigerian Tribune reported on
October 17.
DPR’s actions were reportedly prompted by
violations of the Trade Union Acts, the Nigerian
Constitution and Regulation 15A of the Petro-
leum Drilling Act (as amended) 2019. These
violations, in turn, stemmed from the NOV
subsidiaries’ ongoing dispute with the country’s
oil and gas workers’ union, known as the Petro-
leum and Natural Gas Senior Staff Association
of Nigeria (PENGASSAN), over a series of lay-
offs that occurred in 2014 and 2019.
Because of the disputes, DPR ordered the
NOV subsidiaries in June 2020 to draft a col-
lective bargaining agreement (CBA) with NOV assisted Aveon with a project in Port Harcourt in 2019 (Photo: Aveon)

Nigeria to probe refinery contracts

NIGERIA NIGERIA’S House of Representatives (HoR) Maire Tecnimont of a $1.5bn engineering, pro-
this week ordered an investigation into the curement and construction (EPC) contract in
award by the Nigerian National Petroleum April to overhaul the country’s largest oil-refin-
Corp. (NNPC) of contracts for the refurbish- ing facility, the 210,000 bpd Port Harcourt com-
ment of the Warri and Kaduni refineries. plex. This is seen returning the units to 90% of
The motion follows allegations by Henry their nameplate capacity by the fourth quarter
Nwawuba, deputy chairman of the HoR’s Com- of 2022.
mittee on Niger Delta Affairs, that the contracts Nwawuba said that in its current form, fol-
were awarded to Italy’s Saipem and subsidiary lowing the completion of the Warri and Kaduna
Saipem Contracting without either company projects, the Italian contractors would remain
having submitted their local content plans for in a maintenance capacity, meaning that “all the
the project nor its longer-term maintenance. money spent by NNPC in that regard would be
The contracts for Warri and Kaduna, transferred abroad, thus leading to capital flight.”
worth $898mn and $587mn respectively, were He added: “The glaring deliberate abuse of
awarded in August for rehabilitation of the refin- the Nigerian Content Development Act by the
eries to their 125,000 barrel per day (bpd) and NNPC and the contract awarded to foreign
110,000 bpd capacities over three phases spread companies have caused untold economic hard-
over 77 months. ship to indigenous contractors who employ
This followed the award to fellow Italian firm Nigerian citizens.”

Week 42 20•October•2021 www. NEWSBASE .com P9