Addax Employees Resume Strike, Deplete Nigeria's Oil Production

About 324 Nigerian employees of Addax Petroleum Development Nigeria have restarted their strike that had been put on hold due to the Federal Government's and the company's management's failure to address anti-labour practices.

The workers, speaking on behalf of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), confirmed this in a statement issued on Friday in Lagos.

The workers claimed that Addax management and the Nigerian National Petroleum Company Ltd. (NNPC) had refused to resolve the problems that had sparked the August strike.

In a letter to the PENGASSAN General Secretary, Ken Olubor, the secretary of the PENGASSAN Addax Branch, accused the business of indulging in anti-labour actions that put their safety and security in peril.

The Sinopec Group of China owns Addax and holds the OML 123, 124, 126, and 137 Oil Mining Licences.

As part of a Production Sharing Contract (PSC) with NNPC Ltd., the company is managing the assets.

In March 2021, the government revoked Addax's operating permits because the firm refused to finish developing its oil wells.

Since NNPC took over the assets previously managed by Addax, it has started to lift all of the oil from those properties again.

The letter stated that, among other things, "SINOPEC has withheld funding her Nigeria operation (Addax Petroleum Development Nigeria) following its ongoing exit, which has presented safety and operational challenges for employees and the much-anticipated operational funding from the NNPC/NAPIMS is yet to be received.

“The safety and security of our members have been compromised. Addax Izombe facility OML-124 recently suffered an attempted bomb blast incident around the staff accommodation area.

“Employees working in the field have recently been exposed to increased security and safety threats as our onshore location continues to come under siege by unknown armed men.

“This situation is evident in the recurring high medical bills recorded by the Company’s Human Resource Department.”

The letter further stated that “The above notwithstanding, the Addax staff members have continued to work even harder than usual, increasing the OML-123 Asset production from circa 10,000bopd to about 17,000bopd.

“PENGASSAN-Addax Branch has been put in an indeterminate state as SINOPEC-owned Addax Petroleum Development Nigeria Ltd. exits and NNPC Ltd. is slowly assuming responsibility over the operations of the assets.

“It is important to mention that NNPC has been taking all the revenue from the OML-123/124 and OML-126/137 Assets since June 2022.”

The workers claim that Addax has cleaned up after its left but that NNPC has refused to carry out the separation agreement for reasons that are best known to them. They say that while this drama persists, the workers continue to suffer.

The employees claimed that Addax Petroleum had failed to meet their basic needs of purpose, growth, recognition, security, and advancement.

“As a matter of fact, we no longer pray for improved working conditions but only hope to be alive to reap the benefits of the many years we have put in at Addax Petroleum.

“As the prevailing situation is taking a heavy toll on the health and mental well-being of union members,” said the statement.

The workers also alleged inconsistent salary and allowance payments, a halt to performance rewards for appraisals, and violations of the rules governing working hours.

Additionally, they charged management with unjustified overtime increases without pay, protracted stagnation, and a lack of advancement since 2019.