ExxonMobil Oil Workers Shelve Strike, Unlock 300,000 Barrels/Day

The industrial action embarked upon by ExxonMobil oil workers in Nigeria has come to an end after successful mediation.

Following a ‘tripartite meeting’ between the Nigerian National Petroleum Company, Limited(NNPCL), ExxonMobil and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), the latter has decided to call off the strike.

The group executive officer of NNPCL, Mele Kyari, 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.

The industrial action, which began on April 13, 2023, prompted ExxonMobil to declare Force Majeure from four export facilities.

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 release of the June loading programmes for the four affected grades — Qua Iboe, Erha, Yoho and Usan has been delayed as a result. Combined exports of the four grades are scheduled at just over 300,000 b/d in May.

The strike followed a breakdown in the latest three-year periodic negotiations between ExxonMobil and its Nigerian staff. Workers’ demands included a pay rise to keep pace with inflation, as well as improvement to working conditions. They were also protesting against management proposals to change the early retirement age and working rotas.

A pay adjustment has now been agreed, along with “a five-month timeline to review the proposals for a possible change in rota schedule for operations staff,” NNPC said. 

ExxonMobil has yet to comment on the deal and has not indicated if the Force Majeure has been lifted. 

At a tripartite meeting in Abuja on Wednesday, between the leadership of Mobil, PENGASSAN led by the national president of the Union, Comrade Festus Osifo, and NNPC Ltd, at the instance of Kyari, the Union’s grievances were addressed and firm commitments put in place to avoid a repeat of the regrettable situation.

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 strike 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.