Why we oppose sale of refineries -PENGASSAN

FRESH facts emerged at the weekend as to why the oil workers’ unions are not favourably disposed towards the sale of the nation’s four refineries.
Speaking exclusively with The Nation, Comrade Babatunde Ogun, President, Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), said the union opposed the outright sale of the refineries, because such a move will not augur well for its members.
Noting that the oil and gas workers are not completely averse to privatisation, he, however, insisted that the government cannot sell its stake in the oil and gas sector for strategic and security reasons.
He said: “An immediate sale without first carrying out a Turn Around Maintenance (TAM) is unacceptable. The privatisation cannot be done in less than three years time, considering all the labour-related issues, pension, severance, and so on. The sale of PHCN and NITEL is an example. So if you sell after three years, the new buyer uses another two years to make business decision and looks for funds and another two years for the TAM.”
The Dr. Kalu Idika Kalu-led National Refineries Special Task Force had, a few months ago, advocated for the sale of the refineries within the next 18months thus saving the Federal Government the hurdle of fixing the refineries.
But the Federal Government seems disposed to carrying out a Turn Around Maintenance (TAM) at the cost of $1.6billion.
The TAM, which is expected to begin in early January, is scheduled for completion in October 2014.
While reiterating the union’s commitment to the progress and development of the sector, Comrade Ogun said the sale of the refineries as proposed by the Kalu committee was not in the interest of the country.
“Invariably, the committee didn’t want the country to refine crude in Nigeria for the next eight years. This is unacceptable. The TAM must start now without any further delay. Government only gives the contract to a reputable firm and a bank guarantee,” he stressed.
On why most multinational oil companies operating in the country are yet to site their refineries as they have done elsewhere, the PENGASSAN boss laid the blame on the laws of the land.
“Our law gave the companies that chance. The companies are owned by businessmen, but government can address this anomaly in the PIB. Any company producing 200k oil and above must have a stake in refinery in Nigeria.”
Speaking further, he said, “The inefficiency is as a result of policies and tedious approval process. A new well-structured PIB will address that,” adding: “All these positions have been canvassed by both unions in the oil and gas sectors to the government. But government has been running from one committee to the other.”