The Federal Government has stated that since operation cost takes 46 per cent of its income from crude oil, it may warrant job losses or zero profit unless there is understanding with workers.

President Muhammadu Buhari, who was represented by the Minister of State for Petroleum Resources, Chief Timipre Sylva, at the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) 6th Triennial National Delegates’ Conference 2020 in Abuja approved this position.

The conference was tagged “The future of work post and energy transition”.

He said “everything that needed to be said has been said by the GMD”.

The Nigerian National Petroleum Corporation (NNPC) Group Managing Director (GMD), Mele Kyari had told the oil workers in the conference that since there is need to slash production, it means the industry has to reduce its activities, which is equivalent to shedding the staff.

The NNPC boss, took the conference on a journey of how far the oil market has declined, adding that since oil production costs $35 and now sells for $45 per barrel, it means the industry actually earns $10 per barrel.

In the scuffle, he said it is still certain that Nigeria cannot increase production to avoid price crash, so to cut down on its activities has become a necessary evil that would require a fewer hands to handle.

Buhari said the COVID-19 pandemic and progressive decline in crude oil prices in 2020 has made it crucial for Nigeria to aggressively pursue the development of non-oil economy and diversification of revenue sources as it braces up for a possible lower-for-longer crude oil price era.

He disclosed, “We are developing strategic survival measures to ensure economic sustainability and job security.”

He insisted that crude oil will remain pre-eminent in global energy mix in the medium to long term, which means that massive opportunities are still available for members of the association.


The Nation