Home Sectors LABOUR Oil Price Slump: Nigerian Oil Companies Slash 120,000 Jobs

Oil Price Slump: Nigerian Oil Companies Slash 120,000 Jobs

The unending fall in oil prices has resulted in massive job cuts in the oil industry, with Nigeria’s oil and gas companies slashing about 120,000 direct and indirect jobs, the immediate past National Industrial Relations Officer, Petroleum and Natural Gas Senior Staff Association of Nigeria, Hyginus Onuegbu, has disclosed.

According to Onuegbu, who is the Rivers State Chairman, Trade Union Congress of Nigeria, the dwindling oil prices had affected the expected revenue of oil companies in the country as revealed by their third quarter reports, with some of them declaring massive losses.

While noting that the low oil prices, which started in the second half of 2014, will likely continue up until 2019, he added that the current situation in the oil and gas industry was not restricted to Nigeria alone as it had led to the reduction in exploration and production activities globally, and that the fall in oil prices had so far claimed more than 200,000 jobs.

He stated that Schlumberger SLB had axed more than 20,000 oilfield service workers; Halliburton had cut 18,000 jobs; Weatherford International, 14,000; and Baker Hughes BHI, 13,000; with Royal Dutch Shell laying off 7,000 workers.

According to him, the job losses in the sector are worsened by the existing challenges in the industry that have yet to be addressed by the government and other stakeholders.

The TUC chairman highlighted the challenges as unabated pipeline vandalism, illegal crude oil diversion; insecurity and kidnapping in the Niger Delta, leading to significantly increase in the cost of doing business.

In addition, he said that the Federal Government’s inability or refusal to fund the Joint Venture budgets and expenditure had stalled ongoing oil and gas projects and operations, resulted in huge cash call arrears and also the delay in the passage of the PIB.


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