Sweet Crude

November 1, 2011

Union states conditions for downstream deregulation

By VICTOR  AHIUMA-YOUNG

The National Union of Petroleum and Natural Gas Workers, NUPENG, has warned the Federal Government to be ready for war if it goes ahead with the deregulation of the downstream sector without meeting the agreements reached with organised labour over two years ago.

The union, at its National Executive Council, NEC, meeting in Owerri, Imo State, also decried the non-passage of the Petroleum Industry Bill, PIB that has been before the National Assembly since 2008 and the increasing insecurity in the country.

In a communiqué signed by comrades Igwe Aches, and Elijah Okougbo, NUPENG’s President and General Secretary respectively, members said they deliberated on issues that were key and germane to socio-economic and political transformation of the country. These issues included the PIB, deregulation of the downstream sector and the insecurity in the Niger Delta region and a host of others.

The communiqué read in part, “The NEC in session expressed dismay over procrastination in the general reform of the oil and gas industry to ensure transparency and accountability increased investment and return through the timely passage of the petroleum industry bill which has been at the national assembly since 2008. It is even more worrisome and disturbing that there are various versions of the bill in circulation giving room to wild speculation and apprehension in the industry and the nation at large.”

“The NEC in session therefore calls on the National Assembly to make available the authentic version of the bill to the public to enable concerned stakeholders to make meaningful contributions to the content of the bill. The NEC in session further calls on the National Assembly to immediately put in motion all processes for the speedy passage of the bill for the actualisation of the much anticipated reform in the oil and gas industry.”

On deregulation of the downstream sector, the NEC expressed total disappointment at Federal Government’s attempts to deregulate the sector under the current import driven petroleum product supply status. Furthermore, they noted that the refineries are not functional, compounded by obsolete products pipelines network and depots, low local refining and inadequate energy generation capacity and dilapidated road network in the country.

The union reiterated that it is not opposed to deregulation, but that it must be undertaken under the following conditions:

? There must be immediate practical and pragmatic steps to rehabilitate the existing four refineries in the country to ensure optimal capacity utilisation.

Government must create an enabling environment to engender private investors’ interest in building refineries in the country for the purpose of improving the local refining capacity to meet the ever increasing local demand of petroleum products and indeed for exportation purposes

Engage in massive infrastructural development vide, repairs and construction of road network, modern railway system, expansion of energy generating capacity, repairs and reconstruction of petroleum products pipelines network and depots to improve and ensure effective distribution of petroleum products.

Ensure that appropriate palliative measures are instituted to cushion the immediate impact of the deregulation on the citizenry, and

Ensure adequate protection of all oil and gas workers in the country as the UNION will not hesitate to take appropriate actions should these attacks and abduction continue unabated.

The union equally expressed alarm over the increasing rate of insecurity in the country as reflected by reports of violence across the country and the high rate of criminal activities vide, kidnapping, communal strife, resulting in wanton destruction of lives and properties, bombing, arson ,armed robbery, rape .