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ExxonMobil Denies Embarking on Fresh Retrenchment of Workers

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  • ExxonMobil Denies Embarking on Fresh Retrenchment of Workers

Mobil Producing Nigeria (MPN), a subsidiary of ExxonMobil Corporation, yesterday denied reports that it embarked on fresh retrenchment exercise where 89 workers were sacked.

There were reports that the latest retrenchment that allegedly affected 60 regular workers and 29 contract staff, were carried out at the company’s Qua Iboe Terminal in Akwa Ibom State.

But the Manager, Media and Communications at ExxonMobil, Mr. Ogechukwu Udeagha said last night that no such fresh retrenchment was carried out by the company.

“I can confirm that there is no truth whatsoever to that claim,” Udeagha said.

A top official of the company, who spoke on condition of anonymity, also denied any fresh sack of 89 workers.

“To the best of my knowledge, the company has not embarked on a fresh exercise after the Minister of State for Petroleum, Dr. Emmanuel Kachikwu, intervened in the December 2016 retrenchment exercise. The minister is still in the process of resolving that one. So, there is no way the company can initiate a new exercise,” he said.

The official further stated that the report of the sack of 89 workers was the one in December 2016, which was widely reported.

“If you read the new report, they said that the company had paid the 89 workers all their entitlements running into millions of naira. That statement is a confirmation that what they are referring to was last year’s exercise. If the company had embarked on fresh exercise, there is no way the process of working out their entitlements would have been concluded. Payments of entitlements take a longer period. So, they just rehearsed an old story,” the official added.

When contacted to confirm or deny the new development, the National President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Comrade Francis Johnson did not respond to calls on his mobile phone.

Before the intervention of Kachikwu, the aggrieved workers of the company had in December 2016 shut down the company’s corporate head office in Lagos in protest over the attempt by the company to sack over 150 workers.

The protesting workers had accused the company of flagrant violation of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act by deploying expatriates to take over jobs for which there is local capacity.

The workers had also insisted that the outgoing Managing Director of the company, Mr. Nolan O’Neal, must be relieved of his duties.

The Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) and PENGASSAN had on October 26, 2016 threatened to go on strike over alleged plans by the international oil companies (IOCs) to sack 3,000 of their members.

The unions had also issued a 21-day ultimatum to the federal government calling for a halt to the sacking of their members by the IOCs.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Crude Oil

Oil Prices Rebound on OPEC+ Output Delay Talks and U.S. Inventory Drop

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Oil prices made a modest recovery on Thursday on the expectations that OPEC+ may delay planned production increases and the drop in U.S. crude inventories.

Brent crude oil, against which Nigerian oil is priced, rose by 66 cents, or 0.9% to $73.36 per barrel while U.S. West Texas Intermediate (WTI) crude appreciated by 64 cents or 0.9% to $69.84 per barrel.

The rebound in oil prices was a result of the American Petroleum Institute (API) report that revealed that the U.S. crude oil inventories had fallen by a surprising 7.431 million barrels last week, against analysts 1 million barrel decline projection.

The decline signals better than projected demand for the commodity in the United States of America and offers some relief for traders on global demand.

John Evans, an analyst at PVM Oil Associates, attributed the rebound in crude oil prices to the API report.

He said, “There is a pause of breath and light reprieve for oil prices.”

Also, discussions within the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, are fueling speculation about a potential delay in planned output increases.

The group was initially expected to increase production by 180,000 a day in October 2024.

However, concerns over softening demand in China and potential developments in Libya’s oil production have prompted the group to reconsider its strategy.

Despite the recent rebound, analysts caution that lingering uncertainties around global oil demand may continue to weigh on prices in the near term.

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Energy

Power Generation Surges to 5,313 MW, But Distribution Issues Persist

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Nigeria’s power generation continues to get better under the leadership of President Bola Ahmed Tinubu.

According to the latest statement released by Bolaji Tunji, the media aide to the Minister of Power, Adebayo Adelabu, power generation surged to a three-year high of 5,313 megawatts (MW).

“The national grid on Monday hit a record high of 5,313MW, a record high in the last three years,” the statement disclosed.

Reacting to this, the Minister of Power, Adebayo Adelabu, called on power distribution companies to take more energy to prevent grid collapse as the grid’s frequency drops when power is produced and not picked by the Discos.

He added that efforts would be made to encourage industries to purchase bulk energy.

However, a top official of one of the Discos was quoted as saying that the power companies were finding it difficult to pick the extra energy produced by generation companies because they were not happy with the tariff on other bands apart from Band A.

“As it is now, we are operating at a loss. Yes, they supply more power but this problem could be solved with improved tariff for the other bands and more meter penetration to recover the cost,” the Disco official, who pleaded not to be named due to lack of authorisation to speak on the matter, said.

On Saturday, the ministry said power generation that peaked at 5,170MW was ramped down by 1,400MW due to Discos’ energy rejection.

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Crude Oil

Again NNPC Raises Petrol Price to N897/litre

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Petrol - Investors King

The Nigerian National Petroleum Company (NNPC) Limited has once again increased the price of Premium Motor Spirit (PMS) from N855 per litre on Tuesday to N897 on Wednesday.

The increase was after Aliko Dangote, the Chairman of Dangote Refinery, announced the commencement of petrol production at its refinery.

The continuous increase in pump prices has raised concerns among Nigerians despite the initial excitement from the refinery announcement.

According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the 650,000 barrels per day refinery will supply 25 million litres of petrol to the Nigerian market daily this September.

This, NMDPRA said will increase to 30 million litres per day in October.

However, the promise of increased fuel supply has not yet eased the situation on the ground.

Tunde Ayeni, a commercial bus driver at an NNPC station in Ikoyi, said “I have been in the queue since 6 a.m. waiting for them to start selling, but we just realised that the pump price has been changed to N897. This is terrible, and yet they still haven’t started selling the product.”

The price hike comes as NNPC continues to struggle with sustaining regular fuel supply.

On Sunday, the company warned that its ability to maintain steady distribution across the country was under threat due to financial strain.

NNPC cited rising supply costs as the cause of its difficulties in keeping up with demand.

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