Addax Workers Embark On Indefinite Strike ...22,000 Barrel Oil Production Per Day At Risk

Workers of Addax Petroleum Development Nigeria, APDN, have resumed their suspended strike over perceived inability of the Federal Government and Management of APDN to address the alleged unfair labour practices and payment of their terminal benefits as Addax plans to leave Nigeria.

Recall that the workers went on strike in August over the same issue until the intervention of the federal government through the Nigeria National Petroleum Corporation (NNPC).

There is already apprehension that the industrial unrest will further deplete the nation’s crude oil daily production by 22,000 barrel per day being the company’s production level.

Addax, owned by China’s Sinopec Group with four Oil Mining Licences, OML 123, 124, 126 and 137, is operating the assets in Production Sharing Contract, PSC, with the NNPC Limited. 

The Federal Government withdrew the operating licences from Addax in March 2021 over alleged failure to fully develop the oil wells.

NNPC has since taken over the Assets hitherto ran by Addax and has resumed lifting all the oil thereof since June 2022. 

It was gathered that Addax has tidied up on its exit from Nigeria, but that the federal government has refused to execute the exit agreement with the company and while the drama lingers, the employees suffer.

The striking workers, under the aegis of the Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, alleged that the government and Addax management have refused to address issues that led to the August 2022 strike.

In a letter addressed to PENGASSAN’s General Secretary through Addax Branch Secretary, Ken Olubor, the workers accused the company of engaging in unfair labour practices that endangered their safety and security.

The workers alleged that Addax Petroleum has failed to provide, among others, growth, recognition, security and advancement to them that are basic traits of a good working environment.

According to the striking workers: “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 wellbeing of union members.”

Part of the letter read; “SINOPEC has withheld funding her Nigeria operation (Addax Petroleum Development Nigeria) following its ongoing exit, which has created 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 has been compromised. Addax Izombe facility OML-124 recently suffered an attempted bomb blast incident around 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 reoccurring high medical bills recorded by the Company’s Human Resource Department.

“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 Limited exit and NNPC Limited 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.”

Other allegations levelled by the workers include irregular payment of salaries and allowances, stoppage of appraisal performance reward, violation of employment working hour terms and undue elongation of working without compensation, prolonged stagnation and non-promotion since 2019, and that there has been no appraisal in the year 2022 due to the ongoing impasse.