PENGASSAN advocates stakeholders’ inputs to new JV cash call, PIB, NLNG amendment

Nigerian oil workers on Monday, called on the Federal Government and the National Assembly to ensure that stakeholders in the oil and gas industry are engaged in the process of the implementation of the new Joint Venture (JV) Cash Calls, the passage of the Petroleum Industry Governance Bill (PIGB) and the amendment of the Nigeria LNG (NLNG) Act.

The workers under the aegis of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) made the call after their National Executive Council (NEC) meeting in Abuja.

In a communiqué issued after the NEC meeting, the senior staff trade union commended the Federal Government’s efforts at exiting the current JV Cash Calls that led to the government’s indebtedness to the International Oil Companies (IOCs) and the attendant challenges associated with the system.

The communiqué read in part, “The NEC-in-Session appreciates the Federal Government efforts in the payment of arrears of Joint Venture Cash Calls, particularly the establishment of a roadmap to clear outstanding Cash Calls arrears.

“The NEC-in-Session reiterates the need for the Federal Government to engage the labour unions in the implementation of the proposed new Joint Venture Cash Calls structure which is scheduled to commence in January, 2017.”

Expressing its observation on a recent attempt to amend the NLNG Act (Fiscal, Guarantees, Assurances and Incentives) by the House of Representatives, PENGASSAN said the consequences of the proposed amendment which amongst several things will impinge on the continued existence of the nation’s most productive public corporation.

It also noted that the proposed amendment will discourage inflow of foreign investment, lead to loss of $25 billion investment, loss of 18,000 potential jobs, reverse gains in gas flaring reduction and constrain NLNG’s development initiatives in the Niger Delta region.

The Association, therefore, advised the House of Representatives to seek wider stakeholders’ inputs before commencing on the proposed amendment of the NLNG Act.

While commending the recent efforts by the National Assembly to commence the process of speedy passage of the PIGB, the PENGASSAN noted that the delay in passage of the bill has rather been a disincentive to investments in Nigeria’s oil and gas industry.

The trade union particularly commended the thoughtfulness of the Senate Joint Committee on Petroleum for facilitating the public hearing held between December 7th and 9th; but demanded that an all-inclusive industry Stakeholders’ Summit be convened to ensure that various stakeholders’ inputs, especially NUPENG and PENGASSAN positions with regards to labour matters are adequately represented in the bill.