IOC divestments: Job security, welfare of workers our priority — PENGASSAN

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• Says rift with Dangote Refinery over

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By Victor Ahiuma-Young

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As international oil companies, IOCs, continue to divest from Nigeria’s oil and gas industry, concerns over job losses and the welfare of workers have remained at the heart of the transition.

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But the Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, says it has made job security and improved welfare its foremost priorities, insisting that workers should not bear the brunt of the industry’s changing ownership structure.

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PENGASSAN President, Festus Osifo, said the union’s intervention in recent divestments had ensured that none of its members lost their jobs, despite major transactions involving ExxonMobil, Shell, Agip and Equinor. He said the union had also succeeded in securing improved remuneration for its members across the industry.

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In this interview, Osifo reflects on how PENGASSAN navigated the wave of divestments, protected workers’ jobs and improved their pay, while stressing the need for the union to support businesses that provide employment in the sector.

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He also speaks on the union’s once-contentious relationship with Dangote Refinery, revealing that the rift has been resolved, with about 600 affected workers returning to the refinery. According to him, the relationship has now moved from confrontation to partnership, as PENGASSAN seeks to support the refinery’s survival, expansion and capacity to create more jobs for Nigerians.

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“One of the things we said clearly when we came on board was our objective: How do we protect the jobs of our members and enhance their pay?” Osifo said.

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He said the outcome of the union’s efforts could be measured by the fact that no PENGASSAN member had lost his or her job as a result of the recent divestments, including Seplat’s acquisition of ExxonMobil’s assets, Renaissance’s acquisition of Shell’s assets, Oando’s acquisition of the Agip joint venture interest and Equinor’s divestment.

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According to him: “You know about the divestments that took place in the oil and gas industry. We have said it everywhere that not a single PENGASSAN member lost his or her job as a result of those divestments.

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“Today, across the length and breadth of the industry, the remuneration of our members has reached a new height.

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On the disagreement that previously existed between PENGASSAN and Dangote Refinery, Osifo said the dispute had been resolved through engagement and constructive dialogue.

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“Initially, following the resolution reached in October 2025, the affected workers could be deployed to any of the Dangote Group’s industries. At the beginning, some were sent to the cement business and other industries.

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“As we speak today, those members have returned to the refinery. About 600 of them have received employment and are working daily to ensure that the refinery remains in good condition.

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“Dangote Refinery must survive for us to have members there. Beyond the fact that it is critical to Nigeria’s energy security, we must do everything practically possible to ensure that the refinery survives and continues to grow.

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“We were also happy when the company announced plans to double the refinery’s capacity. You know what that means: increased capacity means greater energy security for Nigeria and more jobs for Nigerians.

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“Today, I can tell you that the relationship is robust. It has moved beyond where it was about a year ago,” Osifo said.

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