Hydrocarbon Processing Copying and distributing are prohibited without permission of the publisher
Email a friend
  • Please enter a maximum of 5 recipients. Use ; to separate more than one email address.



Nigeria oil unions plan January strike to protest privatization of refineries

12.18.2013  | 

The plan to sell the refineries, which have a combined capacity of 445,000 bpd, is “against the overall national interest and in the interest of a few,” the Petroleum and Natural Gas Senior Staff Association of Nigeria and the National Union of Petroleum and Natural Gas Workers, or Nupeng, said

Keywords:

By ELISHA BALA-GBOGBO
Bloomberg

Nigeria’s two main oil unions plan to start an indefinite nationwide strike on Jan. 1 to protest proposals by the government to privatize its four state-owned oil refineries in the first quarter.

The plan to sell the refineries, which have a combined capacity of 445,000 bpd, is “against the overall national interest and in the interest of a few,” the Petroleum and Natural Gas Senior Staff Association of Nigeria, or Pengassan, and the National Union of Petroleum and Natural Gas Workers, or Nupeng, said Wednesday in a joint e-mailed statement.

The government’s plan will “transfer government monopoly to cartels that will dictate the market,” Babatunde Ogun, president of the manager-level Pengassan, and Achese Igwe, head of the blue-collar Nupeng, said in the statement. The two organizations have a combined membership of at least 25,000.

Petroleum Minister Diezani Alison-Madueke told Bloomberg TV Africa in an interview in London that the government of the continent’s largest oil producer will pursue the plan after a presidential audit of the facilities last year recommended the sale due to inadequate government funding and what it described as “sub-optimal performance.”

“We would like to see major infrastructural entities such as refineries moving out of government hands into the private sector,” Alison-Madueke said in the interview. “Government do not want to be in the business of running major infrastructure entities and we haven’t done a very good job at it over all these years.”

While Nigeria is also Africa’s top crude exporter and the continent’s most populous nation with more than 160 million people, it relies on fuel imports to meet more than 70% of its needs. Its state-owned plants operate at a fraction of their capacity because of poor maintenance and aging equipment. 

The West African nation exchanges 60,000 bpd of crude for products with Trafigura Beheer BV and a similar amount with Societe Ivoirienne de Raffinage’s refinery in Ivory Coast, according to Nigeria National Petroleum Corp.



Have your say
  • All comments are subject to editorial review.
    All fields are compulsory.

Related articles

FEATURED EVENT



Sign-up for the Free Daily HP Enewsletter!

Boxscore Database

A searchable database of project activity in the global hydrocarbon processing industry

Poll

Should the US allow exports of crude oil? (At present, US companies can export refined products derived from crude but not the raw crude itself.)


70%

30%




View previous results

Popular Searches

Please read our Term and Conditions and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2014 Hydrocarbon Processing. © 2014 Gulf Publishing Company.