PENGASSAN Threatens to Withdraw Members from Upstream Operations

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has issued a warning that it may withdraw its members from upstream oil and gas operations over unresolved industry concerns. The union cited issues such as unfair labor practices, unpaid benefits, and poor working conditions as reasons for the potential industrial action.

According to PENGASSAN leadership, several oil companies have failed to address long-standing grievances, including job security, wage disputes, and breaches of collective bargaining agreements. The union expressed frustration over what it described as a lack of commitment from both employers and government regulators in resolving these challenges.

A withdrawal of PENGASSAN members from upstream operations could significantly impact Nigeria’s oil production, potentially disrupting output and revenue for the country. The upstream sector, responsible for exploration and production, is critical to Nigeria’s economy, with oil exports accounting for a substantial portion of government income.

PENGASSAN has called on relevant authorities to intervene urgently and engage stakeholders in meaningful dialogue to prevent a full-scale shutdown. The union emphasized that while it remains open to negotiations, it will not hesitate to take decisive action if the concerns of its members are not addressed.

Industry experts warn that industrial action in the oil sector could worsen Nigeria’s economic situation, especially amid fluctuating global oil prices and existing production challenges. The coming days are expected to be crucial in determining whether the government and oil companies can reach a resolution to avert a disruption in upstream operations.