Cablegate: Nigerian Crude Not yet Flowing From Total -

This record is a partial extract of the original cable. The full text of the original cable is not available.




E.O. 12958: N/A
SUBJECT: Nigerian Crude Not Yet Flowing from Total -
Other Union Actions Pending

1. Contrary to media reports that an agreement between
the French oil company Total and Nigeria's white-collar
oil workers union PENGASSAN has been reached allowing
for immediate resumption of the company's crude oil
production, O.B. Haffner, Corporate Affairs Manager for
Total Nigeria, told ECONOFF on Thursday morning, July
8, that there is no final agreement between the parties
and that production has not resumed. He suggested
negotiations are ongoing and may be close to
resolution, and said he would have a clearer indication
of their progress and possibly a timetable for
restarting production by 3:00 p.m. local time on July

2. On Wednesday evening, July 7, Haffner reiterated the
company's public statements that oil production was
halted as a precautionary measure due to a "degraded
safety situation" resulting from a union dispute over
perceived inequities involving expatriate versus
Nigerian hiring for high-skill jobs. Haffner told
Econoff Wednesday morning that the company expected to
be pumping crude again by the end of the weekend or
early next week.


3. Meanwhile, the umbrella union organization Nigeria
Labour Congress (NLC) publicly softened its position on
a threatened industrial action over the state of the
nation's refineries after what were deemed fruitful
discussions between the NLC and GON officials regarding
pension reform. But simultaneously, the NLC issued new
strike warnings in conjunction with fuel prices. NLC
representatives were quoted as saying prices have risen
contrary to a court ruling of mid-June that resolved a
two-day nationwide strike over the consumer price of

4. ExxonMobil and PENGASSAN continue to negotiate
contracts, and company officials have publicly stated
their confidence that negotiations will conclude
amicably. PENGASSAN issued a 21-day ultimatum on July
5, promising industrial action against the company for
failure to conclude collective bargaining.

5. COMMENT: In the past, the major oil companies
operating in Nigeria have generally avoided crude
production and lifting interruptions as a result of
disputes with the white-collar union PENGASSAN. At
times, PENGASSAN employees working at corporate
headquarters have engaged in work-to-rule actions,
which slowed administrative functions, but outright
closure of production has been rare in recent years.
The disclosure in today's newspaper the Guardian that
ExxonMobil's Managing Director Mike Fry is leaving
Nigeria may give PENGASSAN room to claim a victory, as
Fry was blamed for stalled collective bargaining
negotiations. The resumption of talks yesterday
suggests that both sides are ready to conclude this
round of contract negotiations without incident.
Nonetheless, the closure of Total's production this
last week stands as a reminder that the ongoing
struggle for greater local content and hiring in the
petroleum sector, during a trend of company
restructuring and streamlining, may have an impact on
corporate and government coffers. END COMMENT.


© Scoop Media

World Headlines


OECD: Final Quarter Of 2020 Shows Continued Recovery In G20 International Merchandise Trade

G20 international merchandise trade continued to rebound in the fourth quarter of 2020 ( exports up 7.2% and imports up 6.8%), following the sharp falls seen in the first half of 2020, as lockdown measures affected trade globally. Although growth ... More>>

UN Report: Civilian Casualties Surged After Peace Talks Began In Afghanistan

Monitoring by the UN Assistance Mission in Afghanistan, UNAMA, and the UN Human Rights Office has revealed that despite a drop in civilians killed and injured overall in 2020 there was a rise in civilian casualties following the start of peace negotiations ... More>>

Climate: UN Chief Lauds ‘day Of Hope’ As US Officially Rejoins Paris Climate Accord

The official return of the United States to the Paris Agreement on Climate Change represents good news for the country and the world, UN Secretary-General António Guterres said on Friday during a virtual event to mark the occasion. The US, under ... More>>

Focus On: UN SDGs

2021: Critical Year To ‘reset Our Relationship With Nature’ – UN Chief

During this time of “crisis and fragility”, the UN chief told the United Nations Environment Assembly on Monday that human well-being and prosperity can be vastly improved by prioritizing nature-based solutions. Painting a picture of the turmoil ... More>>

Paris Agreement: UN Secretary-General António Guterres To Mark U.S. Reentry With Envoy For Climate John Kerry

Watch live at UN Secretary-General António Guterres will join U.S. Special Presidential Envoy for Climate John F. Kerry at an event marking the United States’ reentry into the Paris Agreement this Friday. The discussion with the Secretary-General ... More>>

WeBeliev: Scoop In Conversation With Abhishek Sinha, Founder Of WeBeliev, An NZ Crowdfunding Platform

WeBeliev supports 17 SDGs, launching sector specific campaigns every month Q. What is WeBeliev and why did you start it? A. WeBeliev is a Singapore-registered crowdfunding platform aimed at fundraising for all the 17 Sustainable Development Goals (SDGs) ... More>>