By Victor Ahiuma-Young 

The Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, annual Energy and Labour Summit, PEALS, has become a reference point for stakeholders in the nation’s petroleum industry.

Since inception three years ago, it has remained a rendezvous for  state and non-state actors to galvanize ideas to move the sector forward.

Like the previous ones, the three days PEALS 2024, in Abuja, Federal Capital Territory, FCT, with the theme:  The Future of Nigeria’s Oil and Gas Industry: Energy Mix, Energy Security, Artificial Intelligence, Divestment, and Crude Oil Theft, was a gathering of industry experts, government, policymakers, industrial relations gurus, labour leaders, among other stakeholders.

Welcoming guests and members of the Association, its President, Festus Osifo, recalled that for years, the leadership of PENGASSAN headed by him, conceived the idea of this summit to fill the gap in the numerous conferences and seminars in the oil and gas space in Nigeria that don’t bend backward to examine the impact of government, organisations, and companies’ policies on the workforce in the industry, the most important assets whom we often describe as the goose that lays the golden eggs.

“It is the shortcomings of those conferences that focus only on policies, technology, and profit- making that PENGASSAN Energy and Labour Summit was designed to address.”

According to him: “The resolutions from the last two editions of the summit have been applied in various areas to better the lives of our members and protect their jobs.

“Again, the theme for this year’s edition was carefully chosen to focus on the implication of energy security, artificial intelligence (AI), divestments, and crude oil theft on workers in the oil and gas industry, everyday Nigerians, and the economy at large.”

He lamented that “Nigeria’s oil and gas industry stands at a critical juncture, presented with both unprecedented opportunities and uncommon challenges as we navigate the pathway to sustainable energy development, security, and innovation.

“As the President of PENGASSAN, I am deeply committed to orchestrating a collective vision that encapsulates resilience, adaptability, and forward-thinking strategies to enhance the industry’s future prospects, viz- a-viz: Energy Mix: The dynamic transformation of Nigeria’s energy landscape demands a multifaceted approach.

“Embracing a diverse energy mix that incorporates renewable sources, natural gas, and innovative technologies is not only imperative for environmental sustainability but also positions us as pioneers of a balanced energy portfolio that caters to the evolving needs of our nation and the global community.

Energy Security 

Ensuring robust energy security is paramount to the stability and progress of our nation. How will investments in infrastructure, collaboration with international partners, and the development of indigenous capacity lead to the fortification of Nigeria’s energy security?

“How will they reduce vulnerabilities, thereby bolstering resilience amidst global energy dynamics? A country that cannot meet its energy needs or guarantee energy availability for its citizens is on the path of becoming a failed state; how can this be avoided as a nation?

Artificial Intelligence

“How will the integration of artificial intelligence present unprecedented opportunities for efficiency, optimisation, and predictive analytics within our industry?

“How will embracing AI-driven solutions in exploration, production, and operational management signify our unwavering commitment to technological advancement and innovation, and how will it propel Nigeria’s oil and gas sector into a realm of unparalleled competitiveness and sustainability? What is the implication of all these on the current workforce in the industry?

Divestment

“The recent trend of divestment by international oil companies necessitates a strategic shift in our approach. Does this present an opportune moment for local empowerment, innovation, and strategic collaboration to harness the enormous potential latent within our talent, resources, and expertise; or is our industry headed for the precipice? “As an Association, we are resolute in turning this transition into a catalyst for domestic growth, empowerment, and self-reliance.

“We are witnessing a significant shift in the landscape of the energy sector in the country, marked by the divestment actions of companies such as ExxonMobil Producing Nigeria, Nigeria Agip Company, SPDC, and other non-operated Assets like TotalEnergies and Equinor, which has impacted the presence of international oil and gas companies in Nigeria. These developments necessitate a collective reflection on the implications on our people, industry and nation.

Crude Oil Theft

“The scourge of crude oil theft poses a significant threat to our industry, economy, and national integrity. As an Association, we have mounted the rostrum over time, both on the streets and in the boardroom, to champion this cause, and we will not relent until victory is certain.

“We are steadfast in our resolve to continuously partner with other stakeholders in the industry to combat this menace through enhanced security measures, technological innovations, community engagement, and collaboration with law enforcement agencies.”

For Osifo, “Nigeria stands at crossroads, and our actions and decisions here in the next few days will provide a framework for a policy thrust for government towards shaping the economic outlook of our country. It is incumbent upon us to drive positive change, foster economic growth, and ensure our people’s prosperity.

“Recent policy directions by the government have placed untold hardship on Nigerians. Chief among them is the flotation cum devaluation of the Naira, which saw our currency slide from N450 officially in May 2023 to the current exchange rate of about N1600.

This is the reason why the landing price of PMS today is over N1, 000 (reintroduction of subsidy), the reason why AGO is selling for over N1, 300, and the reason why all imported commodities are over the roof today.

The overarching impact of this on Nigerians can only be imagined rather than experienced.

Part of the decisions of floatation has totally benefitted the oil and gas companies in Nigeria.

This has necessitated a call for a salary benchmark for oil and gas workers, aligning with the instrument of trade of the oil and gas commodity. The model practised in Angola, where legislation pegs workers’ salaries in dollars and pays them the legal tender equivalent; this is a testament to the possibilities of safeguarding the interests of workers amidst currency fluctuations. 

The floating of the Naira in the official market has exacerbated the challenges faced by our members. We must explore innovative solutions to forestall financial losses to workers and prevent undue gains to companies, ensuring a fair and equitable environment for all. PENGASSAN will do all it can to push for this just and equitable distribution across its branches.