RateCaptain
  • Home
    • About Us
    • Contact Us
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
No Result
View All Result
Subscribe
  • Home
    • About Us
    • Contact Us
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
No Result
View All Result
RateCaptain
No Result
View All Result
Home Business

Department Of Petroleum Resources Axe Operating License Of Two Oil Firms

Rate Captain by Rate Captain
October 18, 2021
in Business, Commodities
Reading Time: 3 mins read
A A
0
Share on FacebookShare on TwitterShare on WhatsappShare on Telegram

AlsoRead

Petrol Climbs to N1,400 per Litre as Transport Fares Rise Across Nigeria

Cooking Gas Prices Drop Across Nigeria as Lagos Records Lowest Rate of N1,200 per kg

Depots Increase Petrol Prices to N1,230 per Litre Following Dangote Refinery’s Pricing Shift

The Federal Government, through the Department of Petroleum Resources, DPR, the regulatory agency in the Nigeria Oil and Gas Industry, has cancelled the operating licences of two oil firms; NOV Oil and Gas Services Nigeria Limited as well as Nov Oilfield Solutions Limited (National Oilwell Varco) over alleged breach of terms and conditions of the Oil and Gas Industry Service Permit, OGISP.

The companies were accused of failing to abide by the rules and regulations governing the release of staff, failure to put in place a Collective Bargaining Agreement, CBA, and for contravening the extant laws within Nigeria Oil and Gas Industry with regards to committing anti-labour infractions and lack of respect for due process.

NOV Oil & Gas Nigeria Limited and NOV Oilfield Solutions Limited are subsidiaries of Houston, Texas-based multinational National Oilwell Varco (NOV) Incorporation with total assets $20.21 billion and a revenue of over $10 billion.

NOV Nigeria has participated in many projects in Nigeria including the Total Egina project which fetched the company over a billion dollars in the last five (5) years. It currently has ongoing contracts with IOCs in Nigeria.

The cancellation of the licences was the height of the sanctions against the company for its perceived lack of respect for national and international labour laws, conventions, rules, and regulations, including the Trade Union Acts, the Nigerian Constitution and Regulation 15A of the Petroleum Drilling Act (as amended) 2019.

The company paid a fine $250,000 for the infraction in early 2021 and was imposed a fine of another $250,000 on September 29, 2021, with a deadline for payment on October 6, 2021, for deliberately flouting extant laws, procedures and guidelines, while the DPR directed that the terminated workers should be recalled and reinstated.

In a letter titled “Cancellation of Permit to operate as an oil industry service company, Director/CEO of DPR, Engr. Sarki Auwalu, dated October 5, 2021, to the Managing Director, National Oilwell Varco(NOV), insisted that “the permit shall not be re-issued until such a time that your companies are in compliance with the law and statutes.”

Recall that NOV Nigeria has been having a running battle with Organised Labour under the aegis of the Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, and regulatory authority and Federal Ministry of Labour and Productivity over anti-labour and unprocedural practices in the country.

The DPR directed the NOV Nigeria Management to put in place a Collective Bargaining Agreement (CBA) and discuss with the union before embarking on redundancy in 2014, which the Management refused to adhere to but went ahead to severe the employees’ employment and a similar thing happened in 2019 when 23 employees who were members of PENGASSAN were sacked in 2020.

Since June 2020, Management and PENGASSAN had engaged in CBA discussions at various times with the intervention of the Federal Ministry of Labour and Productivity, and the DPR.

A CBA was however concluded on July 27, 2021, and signed by all parties including PENGASSAN, NOV Human Resources Manager in Nigeria and DPR representatives except the offshore Management representatives, Mr Francisco Cruz, Human Resources, HR, Director, the Middle East/Africa; Mr Pierre Yves Palud, Vice President, Africa Finance; Mr Juanita Olivier, Africa Regional Counsel and Mr Cesar Velasco, Vice President, Well Services, Middle East and Africa who refused to sign the agreed CBA/Minutes and this culminated in the industrial relations crisis and breach of the industry regulations.

Speaking on the anti-labour practices, Lagos Zonal Chairman of PENGASSAN, Eyam Abeng, said that the management had been engaging in harassment, victimisation, intimidation and sacking of its workers without following the laid down procedures for releasing of staff.

“This has been the practice of the NOV Management in all its countries of operations. They will come into the country with over 100 local staff and within two years of operations, it will tactically reduce to 4 or 5 staff, while all jobs are gradually off-shored.

“The Union is not averse to redundancy or release of its members but must be carried out in line with the signed CBA and extant laws of the industry in Nigeria. Offshoring of jobs by NOV Oil & Gas Nigeria Limited and NOV Oilfield Solutions Limited or any other company operating in the Oil & Gas industry in Nigeria will not be allowed henceforth. This action/practice is against the Nigeria Petroleum Act.”

News Source : Victor Ahiuma-Young  Vanguard News

Previous Post

Oil Price Continues To Surge As Users Switch To Fuel & Diesel For Power Generation

Next Post

India’s Import Valued At USD 68.49 Billion A 70% Increase

Related News

Fuel Subsidy Removal: Should Nigeria Continue With a Regressive Petrol Subsidy?

Petrol Climbs to N1,400 per Litre as Transport Fares Rise Across Nigeria

by Akpan Edidong
July 27, 2026
0

Petrol prices have surged to as high as N1,400 per litre in parts of Nigeria, prompting a fresh wave of...

Cooking Gas Prices Drop Across Nigeria as Lagos Records Lowest Rate of N1,200 per kg

by Akpan Edidong
July 27, 2026
0

Cooking gas prices have fallen significantly across Nigeria over the past three weeks, offering relief to households after recent highs....

Nigeria Expends More Than $1 Billion Subsidizing Fuel in August as Petrol Supply Increases

Depots Increase Petrol Prices to N1,230 per Litre Following Dangote Refinery’s Pricing Shift

by Akpan Edidong
July 21, 2026
0

Private fuel depot owners across Nigeria have raised the price of petrol to between N1,200 and N1,230 per litre after...

SEC encourages youth’s participation in capital market.

SEC Gives Capital Market Operators Two Days to Submit Capital Flows Returns

by Victoria Attah
July 10, 2026
0

The Securities and Exchange Commission (SEC) has issued an urgent directive to all capital market operators to submit their second-quarter...

Next Post

India's Import Valued At USD 68.49 Billion A 70% Increase

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

CBN Allows Oil Companies to Resume Dollar Sales to Banks in Effort to Boost Supply.

Cash Outside Banks Falls by N486 Billion to Seven-Month Low

July 28, 2026
FG Secures $1.95 Billion in World Bank Loans Amidst Debt Concerns

Nigerian Issuers Pay Up to 20% to Raise Debt in First Half of 2026

July 28, 2026

Popular Story

  • Nigeria Plans New FX Rules, Targeting 750 Naira Exchange Rate

    Nigeria’s FX Market Hits Record $4.4 Billion Weekly Turnover 

    0 shares
    Share 0 Tweet 0
  • 31 Nigerian States Grapple with N2.57 Trillion Domestic Debt Amid No Foreign Inflows

    0 shares
    Share 0 Tweet 0
  • First HoldCo Assures Shareholders of Dividend Resumption by End of 2026

    0 shares
    Share 0 Tweet 0
  • Asian Central Banks Innovate to Safeguard Currencies Amid Global Uncertainty

    0 shares
    Share 0 Tweet 0
  • CBN’s Financial Inclusion And FCMB’s Easy Account

    0 shares
    Share 0 Tweet 0

RateCaptain

We bring you the most accurate in new and market data. Check our landing page for details.

  • Home
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Disclaimer
  • Cookie Policy
  • Contact Us

Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.

No Result
View All Result
  • Home
    • About Us
    • Contact Us
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates

Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.

RateCaptain
Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
  • Manage options
  • Manage services
  • Manage {vendor_count} vendors
  • Read more about these purposes
View preferences
  • {title}
  • {title}
  • {title}
?>