Update on PENGASSAN-Govt discussions:11-07-16

Update on Union-Govt discussions:11-07-16

1. TAM govt seeking for investors fund to repair refineries and agree on operations plus payment terms using products share. Process is hold due to queries from BPE. Govt agreed to come up with timeline for TAM of the 3 Refineries as well publish monthly crude supply reports


2. Sale of Refineries and job loss: No mandate to sale refineries. Govt reaffirmed its commitment to the communique signed with the GEC

3. Why we cannot use savings due to replacement of Offshore Processing Agreement with Direct Sales Direct Purchase is because of mandate to eliminate products import by 60, waiting for such savings would delay target

4. PIB: there are 2 versions in house of Reps sponsored by members 1 version in the Senate sponsored by a senator and executive ll be presented soon. This may be harmonised. Govt promised to make copies available to Unions thru petroleum ministry

5. CBA of PTI and NNRA that relied on NNPC CBA has been approved but couldn't be implemented until 2017 due to budget constraints

6. Integrated Personnel Payroll Information System: PPPRA and others are seeking for exemption due to peculiarities of the oil and gas pay structure. Govt promised to convene stakeholders meeting to discuss possibilities

7. Roads leading to NNPC facilities: NNPC agree to explore partnership with works ministry

8. Security of personnel in and around oil facilities. DSS and Police promised to accord priority to such areas in view of its importance to the nation

9. Cash Call Arrears: Govt plans to pay over 5 years using incremental volumes to be produced by the operators and they agree to a 25% cut on the final amount agreed. Payment of 2016 arrears to date will be paid by cash injection

10. Cash Call going forward: Govt plan to use part of its equity crude to settle cash call on a month by month basis while at the same time seek for IOCs account to be transparent. General guidelines on this have been agreed by all IOCs, peculiar customisation is ongoing.

11. NAPIMS must pursue cost reduction measures with emphasis on services rather than personnel. Where personnel becomes inevitable the IOCs Unions agree to partner with Govt by providing necessary information to start with expatriate.

12. IR issues affecting Chevron, Fugro, TECON and Universal Energy would form the agenda for tomorrow's meeting at the Ministry of Labour.

Comrade Sale Abdullahi, Group Chairman PENGASSAN. Aluta