PENGASSAN halts Eni operations over Oando-Agip sale

PENGASSAN halts Eni operations over Oando-Agip sale
PENGASSAN halts Eni operations over Oando-Agip sale

PENGASSAN, the Petroleum and Natural Gas Senior Staff Association of Nigeria, has instructed its members to vacate all Eni offices and field locations due to the sale of its subsidiary, Nigerian Agip Oil Company Limited (NAOC), to Oando Plc.

Oando recently announced its agreement to acquire a 100 percent stake in NAOC Ltd, which included the purchase of a 20 percent participating interest in oil mining leases (OMLs) 60, 61, 62, and 63.

Chairman raises concerns over Oando-Agip deal

Speaking during a meeting in Port Harcourt, Eyong Survival, Chairman of PENGASSAN, Agip Group, expressed concerns about the acquisition, stating that it was completed “without consulting or alerting the union.”

Survival noted that Eni Nigeria’s Managing Director, Mr. Fabrizio Bolondi, had informed the workforce on September 4, 2023, that Eni had sold its 20 percent equity share in NAOC JV to Oando Nigeria Limited, transferring all assets and liabilities to Oando without addressing outstanding financial obligations to the workers, including employee savings plans, pensions, and gratuities.

The union leader estimated that over 3,000 indigenous workers could be left unemployed due to the sale of NAOC joint venture assets to Oando, as the transaction details were undisclosed.

PENGASSAN has ordered the withdrawal of its members from Eni locations until a proper agreement is reached with Eni Nigeria and AGIP Group PENGASSAN.

Survival emphasized the need for due process in Eni management’s actions.