Four oil mining licenses, OML 123, 124, 126, and 137, are owned by Addax, a subsidiary of China’s Sinopec Group, which operates the assets under a Production Sharing Contract (PSC) with the Nigerian National Petroleum Corporation (NNPC).

About 324 Nigerians work for the company, including 141 permanent employees and 183 contract workers.

The striking workers, who are represented by PENGASSAN, the Petroleum and Natural Gas Senior Staff Association of Nigeria, claimed they started their industrial action on Wednesday following numerous attempts to communicate with Addax management about pressing labour issues were rebuffed.

The aggrieved workers are threatening to shut all the company’s operations including oil wells, valves crude lifting, and export terminals operated by Addax if the company refuses to engage them.

It was gathered that sequel to the notification by the APN Management informing its employees of the withdrawal of its operating license by the NNPC in a town hall meeting, both parties met and reached a financial term of exit settlement for all the workers.

According to sources, it was agreed that the financial exit settlement would be executed at the expiration of Addax Petroleum Nigeria’s PSC agreement for OML 123 and 124 by July 1, 2022.

Confirming the development, PENGASSAN’s Senior Assistant General Secretary, Lagos Zone, Babatunde Oke, said “the strike was embarked upon by our members due to the Management’s refusal to engage our Association on the financial settlement earlier agreed on.

“The workers have waited patiently for the Management “trying to understand its plights but it is like they are insensitive to our problems. Many letters have been written asking for a meeting but the Management refused to meet them.”

Recall that the then Department of Petroleum Resources, DPR, revoked Addax’s licenses in March 2021.

According to the regulatory agency, Addax Petroleum’s failure to properly develop the assets in question resulted in the licenses being canceled, depriving the government of potential revenue of such assets.