NUPENG Warned Against Shutting Down Dutchford Facilities

Dutchford Exploration and Production Company Limited has warned the National Union of Petroleum and Engineering Gas Workers (NUPENG) against creating a false representation of its operations.

The company made the clarification in response to a threat by NUPENG to embark on a nationwide strike as well as storming its Oritsetimeyin oil drilling rig to eject workers.

The rig has already been shut down over lingering industrial dispute.

In a statement signed by the management of the company, it said contrary to the claim that Dutchford E&P did not pay their employees’ entitlements in 2022, the workers in questions were not employees of Dutchford but the Selective Marine Oil and Gas Services (SMOGS).

The Rig Oritsetimeyin only arrived at its location on March 8, 2024, adding that all discussions and protracted issues from previous operations predating the date were completely unrelated to Dutchford.

Dutchford is the operator of the Udibe Oil Field, located within the FGN approved Petroleum Prospecting License (PPL) 237,Offshore in Akwa Ibom.

In the statement, the company said in its mandate to meet the regulatory minimum work programme obligation, it engaged the SMOGS who are the owners and operator of the Oritsetimeyin Jackup rig on a six-month contract for the installation of the Udibe wellhead drilling platform and drilling and completions of the Udibe-02 appraisal/development well.

In the last eight months, Dutchford explained that it has successfully installed the Udibe well head drilling platform and its in the process of completing its ongoing Udibe-02 appraisal/development well operations.

The statement added, “The SMOGS workers that are part of the union (NUPENG) had gone on strike and down their tools due to lingering and unresolved internal crisis.

“This strike action, always timed and scheduled during critical operations has posed very severe negative impact on DUTCHFORD operations and project finance.

“Despite the fact that the workers were not employed by DUTCHFORD, the disruption in operations have compelled DUTCHFORD to intervene in an effort to mitigate the damage to its operations.

“It is worthy to note that NUPENG had gone on strike thrice within August, September, November threatening our wellbore and stopping operation on the rig with hydrocarbon and elevated pressures in the wellbore with potential for loss of life and equipment.

“Each time threatening the workers from carrying out their operations. 35 contractors are on location with the SMOGS being only 20 per cent of the manpower. On each occasion of the strike, we had notified the appropriate authorities on the potential destruction to life and properties.”

The company stated further that the aggrieved workers on location have threatened the entire 80 per cent of the remaining workforce and restricted movement within the operational areas, by telling them of their willingness to die and sink the rig.

“They’ve denied the team access to essential consumables such as food, water, and AGO with the delivery vessels on standby at the location with no recourse to the daily spread cost.

“In addition, they installed scaffolding materials on the helideck to hold the rig hostage with no external support which is an absolute violation of HSSE requirements for an offshore isolated location,” the statement added.

According to the management of Dutchford, its team and contractors have expressed fear for their life and equipment with the presence of these NUPENG officials who constantly threaten their life and are being prevented from operations.

“In total, we have 165 personnel from different companies on location and 20 people from the union are holding everyone to ransom. The other 145 personnel are non NUPENG members.

“Dutchford is not averse to personnel joining the union; however, we will not partake or condone any act of illegality on our location. We will continue to make concerted effort in line with the FGN effort to meet up with the much needed 3 million barrels of crude oil production per day,” the statement added.

The company commended the Nigerian Security agencies, most especially the Office of the National Security Adviser, Department of State Security, Nigerian Navy, and the Navy Forward Operating Base Bonny for their prompt action for successfully accessing its location and restoring the required comfort and safety onboard the rig.

“We will also urge the NUPENG whilst embarking on any activity/actions to stay within the ambits of the law and utilize the available channels to resolve issues with their employers, and in this SMOGS.

“We are certain that the senior management of NUPENG are not aware of the illegality and acts of terrorism of their team onboard the Oritsetimeyin rig.

“Dutchford wishes to appeal to the NUPENG and SMOG to settle their matter amicably within the ambits of the law. DUTCHFORD will continue to collaborate with the law enforcement agencies to ensure a peaceful resolve and completion of her campaign,” It added.

The company added in the statement that it prides itself on treating its employees appropriately, ensuring all entitlements and benefits are promptly paid.

“We continue to strive at creating job opportunities for Nigerians,” the statement added.