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Monday 9 February 2009

Nigerian oil workers poised to strike

The Petroleum & Natural Gas Senior Staff Association of Nigeria (Pengassan) has threatened to stop oil exports from the Niger Delta unless the government addresses the rise in kidnappings. Nigeria's oil production has been significantly cut because of attacks on oil and gas pipelines and facilities by militants campaigning for more oil revenues to be distributed to develop areas blighted by poverty and unemployment.

Pengassan's actions would affect Nigeria's oil and gas exports and revenues. The low oil price is affecting implementation of the federal government's 2009 budget, which is based on higher prices. Earlier this week, former petroleum minister Gladys Daukoru was kidnapped. On Feb. 4, an Agip SPA worker was snatched and a ransom issued for his release.

Last week a criminal gang killed an 11-year-old girl and abducted her younger brother, whose father is an employee of Shell Petroleum Development Co., as they were going to school in Port Harcourt, Rivers State. Pengassan has given the federal government an ultimatum to improve the security situation or face industrial action.

This is not the first time Pengassan has threatened to strike, but other attempts were thwarted after discussions with federal officials and oil company representatives. The Nigerian government said it is confident that it can avert the walkout and will hold meetings with Pengassan to discuss the issue. According to a report in This Day newspaper, oil companies spent $3.5 billion on Niger Delta security in 2007.

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