PENGASSAN laments rising insecurity in oil & gas industry

PENGASSAN held a security awareness campaign across its four zonal councils of Kaduna, Warri, Port Harcourt and Lagos before its grand finale in Abuja. Soji-Eze Fagbemi, reports the highlights of the event, the lamentations and expectations of the union.

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) ended its security awareness campaign with a call to the federal and state governments to be alive to their responsibilities, and fund the police and other security agencies adequately.

The grand finale of the awareness campaign, with a theme: ‘Making Nigeria and Nigerians Safer and more Secure’, was held in Abuja, after the success of the programme across its four zonal councils of Kaduna, Warri, Port Harcourt and Lagos. It was a rain of lamentations, owing to how the society has degenerated in terms of security which has gravely affected the world of work.

The program was conceived at the last National Executive Council meeting of PENGASSAN in Benin City, Edo State, where the worsening security situation in the country took the center stage. According to the Deputy General Secretary, Comrade Ben Nwangwu, members of the union shared their harrowing experiences and proffered suggestions on how best to tackle the challenge.

Part of the suggestions, he said, was to embark on an awareness campaign geared towards bringing the issue to the front burner through engagement, interaction and finding ways of collaboration with the various security agencies since security is everybody’s business.

He said the theme was carefully chosen to reflect the reality of the security situation in the country, saying, “our members and Nigerians are yearning for a safer and secured country, and this can only be achieved when kidnapping, Boko Haram menace, armed herdsmen attacks, unknown gunmen activities etc. are not only technically defeated but defeated in the true sense of it. We can have a safer and secure nation when motorists and travellers can move from any part of this great country without fear of being kidnapped or attacked.

“We can boast of a safer and secure nation when foreign investors see Nigeria as an ideal destination for their investment. This shall in-turn create more job opportunities for our teeming unemployed youths, thereby reducing the crime rate since there is a correlation between unemployment and crime rate.”

Specifically, he pointed out that one major sector that insecurity has badly affected in the country is oil and gas, as oil workers are targets of attack and most importantly, kidnapping. Comrade Nwangwu added, “for us in PENGASSAN, insecurity has been a major setback to us, as our industry is grappling with the effects of it which could be seen in areas of reduced investment, divestment, and job losses.”

He warned, “this dangerous trend, if not checked, may get to a point where we may not explore the inherent opportunities of the PIB when it eventually becomes a law.”

He, however, added, “this we must resist by ensuring that we position the oil and gas sector to benefit from the PIB and one of the ways of doing that is to improve security situation to guarantee more foreign investment even as we prepare for the post-oil era which is staring us in the face.”

As part of the union’s collaboration with the security agencies towards improving security, he stated that PENGASSAN was exploring ways to support the agencies in boosting their morale. He commended the security agencies for some considerable improvement witnessed in the last few weeks in the war against various criminal gangs all over the country and expressed the hope that the tempo would be sustained until peace is restored, and there is hope and a conducive environment for all Nigerian to live and thrive.

The President of PENGASSAN, Comrade Festus Osifo spoke on the three per cent equity to the host communities, saying that it could be a good take off even though the union would have preferred five per cent. With that in the kitty, he said the host communities could seek a further amendment to the provision of three per cent operating expenditure after the bill might have been signed into law by President Muhammadu Buhari.

The PENGASSAN President called on Nigerians and the host communities to ensure that President Buhari signed the bill into law to end the uncertainty that shrouds the petroleum

industry. He pointed out that from rough estimation gotten from the expenditure of the oil companies in the last one year, the three per cent translates to about $450 million, which he said would possibly remain constant. He expressed satisfaction that being three per cent of operating expenditure from oil companies rather than three per cent of profit, capital cost or operational cost, the three per cent would remain constant.

Comrade Osifo said: “The National Assembly is talking about three per cent of operating expenditure. That means the three per cent is relatively constant. So, judging where we are coming from, is the three per cent okay? To me, the National Assembly could have done better to a minimum of five per cent. But looking at where we are coming from, it was zero per cent before now, now it is at three per cent. For us in PENGASSAN, three per cent of operating expenditure is a good place to start. Let the bill be signed to end the uncertainty that shrouds the petroleum industry. The host communities can then seek amendments. In my rough estimation gotten from the expenditure of the oil companies in the last one year, three per cent translates to about $450 million.”

He, however, warned that the main critical thing is how to ensure that the money is used for what is meant for, judging from the corrupt nature of our society. Comrade Osifo said: “The most important thing is how the fund will be administered? How will the fund be applied in such a way that will serve the purpose it is meant for? Corruption must not be allowed to find its way into the administration of the fund so that the host communities will benefit maximally.”

He regretted that insecurity is driving away investment from the country and called on the federal and state governments to take the issue of security seriously and be alive to their responsibilities.

“Today, lots of our personnel have been kidnapped. PENGASSAN, therefore, calls on the federal and state governments to be alive to their responsibilities. They should fund the police and other security agencies adequately. The money they give to police stations to fuel their cars is nothing to write home about. Security cost is making foreign direct investments in the oil and gas sector to move.” Osifo said.

On the issue of refineries, he said PENGASSAN has never advocated for the refineries to be sold. Rather, he pointed out that what the union has always advocated for is that there should be a Public-Private Partnership in such a way that the government will not be involved in the day-to-day running of the refineries.

He said: “Why is the Federal Government not exploring the possibility of adopting the LNG model where the government holds minority 49 per cent while the private sector will take 51 per cent? That model has worked very well. PENGASSAN welcomes the rehabilitation of the refineries; our advocacy once the rehabilitation work is complete will be to call on the government to divest from the refineries and allow the private sector to run all of them. If we were to sell the refineries the way they are, they will be sold as scraps. If the government fixes the refineries and then divests, the money that government will get will be reasonable.

Also, he disclosed that PENGASSAN has never opposed deregulation as a policy, but warned that the association will not support a deregulation policy that is hinged on importation.

Osifo said, “that is why our position to support the rehabilitation of the refineries is justified. Nigeria will be ripe for full deregulation when the three refineries in the country are fully rehabilitated and are functioning under the private sector that is efficient. With the refineries coming on stream in the next few months and with the Dangote refinery coming on board as well, Nigeria will soon be self-sufficient in refined petroleum products.”

ACP Sanusi Muhammed, who spoke on behalf of the security agencies said every responsible the government must provide for the security of lives and property, but he quickly added that the issue of security provision is no longer the responsibility of the government alone but that of all.

He however insisted that the government must provide those amenities that guarantee security, adding, “once these are in place, struggling for survival among citizens will reduce. Community policing is another approach that recognizes the role of the people in ensuring a secure environment.”

He warned against the unnecessary display of wealth by people, saying that people must be careful against showing off wealth, even as he warned against common security mistakes that people must avoid in order to be saved.

Eight officers and a state command, who were carefully selected, were given PENGASSAN Security Award in appreciation for their excellent performance and dedication to duty. The officers and men were selected across the four zonal councils and the FCT, with a strong belief by PENGASSAN that the recognition will go a long way in boosting the morale of the security forces, knowing that an association like PENGASSAN and many others were watching them.

Following the ideas generated through the awareness campaign, PENGASSAN said it would forward an open letter to President Buhari while calling on the president to do whatever it takes to address the security situation in the country.

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