NNPC Brokers Peace Deal to Resolve TotalEnergies Dispute

The Nigerian National Petroleum Company Limited (NNPCL) has successfully mediated a peace deal to address the longstanding discord between the management of TotalEnergies and the Petroleum and Natural Gas Senior Staff Association/Nigeria Union of Petroleum and Natural Gas workers (PENGASSAN/NUPENG).

This intervention by NNPCL resulted in the suspension of the ongoing industrial action against TotalEnergies and the immediate restoration of 275,000 barrels of crude oil per day, as TotalEnergies operates the NNPC/Total Joint Venture.

Background: Labour Accusations and Industrial Action

The conflict arose when organised labour accused Fedoz Nigeria Limited, an oil servicing firm, of unjustly terminating the employment of three members of PENGASSAN without due process.

Additionally, TotalEnergies was accused of failing to adjust workers’ salaries to align with the prevailing economic situation in Nigeria. These grievances led to an industrial action.

NNPCL’s Intervention: Successful Negotiations and Framework Agreement

The Chief Corporate Communications Officer of NNPCL, Olufemi Soneye, revealed that a marathon negotiation session chaired by Oritsemeyiwa Eyesan, Executive Vice President, Upstream, NNPCL, resulted in a successful resolution.

The communique issued at the end of the session outlined a commitment from all parties to address the issues within an agreed framework.

Key Signatories: TotalEnergies, PENGASSAN, NUPENG, and NNPC Representatives

The communique was signed by Matthieu Bouyer, MD/CEO of TotalEnergies; Festus Osifo, President of PENGASSAN; and Williams Akporeha, President of NUPENG.

NNPC Ltd was represented by Mrs Oritsemeyiwa Eyesan, EVP Upstream, and Mr. Bala Wunti, Chief Upstream Investment Officer, NNPC Upstream Investment Management Services. Victor Bandele, Deputy Managing Director of TotalEnergies, was also present.

TotalEnergies’ Response: Commitment to Negotiations

The communique acknowledged TotalEnergies’ confirmation of the industrial action and its commitment to engaging in a collective negotiating process since July.

The company emphasized its understanding of the industry’s significance to Nigeria’s socio-economic development and expressed dedication to exploring legitimate means for a sustainable resolution amid current economic challenges.

Moving Forward: Collective Bargaining for Sustainable Resolution

The stakeholders involved, including TotalEnergies and the labour unions, have committed to resolving the issues through ongoing negotiations and collective bargaining processes.

The NNPC’s intervention marks a crucial step toward restoring harmony and stability in the oil and gas sector, vital for the nation’s economic well-being.