•Asks NNPC to investigate, save workers’ jobs
By Kelechi Mgboji
Assistant Business Editor
Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has alleged illegal fund repatriation against Addax Petroleum, escalating the labour conflict in the Chinese oil exploration company.
Addax neither confirmed nor denied the allegation that it uses its sister firm, Kaztec Engineering, to illegally repatriate over $2 billion out of Nigeria.
Capital flight, the workers alleged, is one of the ways Addax is bleeding the company to death in order to end workers’ agitation.
PENGASSAN appealed to the Minister of State for Petroleum and Nigeria National Petroleum Corporation (NNPC) Group Managing Director, Ibe Kachukwu, to investigate Addax to save it and the jobs of hundreds of Nigerian employees.
The Addax branch of PENGASSAN alleged that the company deliberately repatriated $2 billion overseas to undermine the existence of the firm.
Contracts allegedly diverted
A document produced by PENGASSAN branch Chairman, Chris Ogienwonyi, alleged that the company has been diverting contracts and monies to Kaztec for the sole purpose of repatriating money to China.
Contracts allegedly diverted to Kaztec included engineering work, procurement, and construction of platforms and topsides for oil block OMLs 123, 126 and 137.
PENGASSAN also cited TBs 3173, 3219, 3229, and other contracts sourced to Kaztec, a facility contractor.
PENGASSAN alleged that Addax diverted contacts worth $365 million, $425 million, and $1.35 billion to Kaztec at different times, adding that it was for that reason former Addax general manager was moved to Kaztec as commercial director. It also alleged that Addax committed some of its staff to working simultaneously as Kaztec staff, receiving salaries from both companies while Addax was diverting contracts to Kaztec.
PENGASSAN petitions
On April 8 and 23 this year, PENGASSAN wrote to Addax Managing Director (MD) and Chief Executive Officer (CEO), Cornelis Zegelaar; and Kaztec MD and CEO, Yi Zhang; seeking explanation for the conflict of interest.
Ogienwonyi recalled that on Addax General Manager (Facilities), John Niezner, identified himself as Kaztec MD at a presentation on Ofrima Udele project to officials of the Nigerian National Petroleum Corporation (NNPC) in Abuja on February 17, 2015.
He said Michael Simpson, Addax Facilities Engineering senior project adviser and manager of Ofrima Udele Project, was also presented as Kaztec Engineering Facility manager.
Kaztec’s organogram shows six Addax management staff from facilities department deployed to Kaztec – John Niezner (MD); Aiden O’Conner (manager, business process); Peter Gibbs (senior manager, Q-HSSE); Mike Simpson (manager, engineering); James Syme (manager, fabrication); and Matthew Dowell (manager, installation).
Ogienwonyi alleged that “all these former expatriate staff of Addax Petroleum, while they were in the service of Addax, colluded to make Kaztec the single source contractor as exemplified in TBs 3173 (fabrication and installation of subsea pipelines and platforms in OMLs 123 and 126), TB 3229 (EPCIC of pipelines and platforms in OML 137), TB 3249 (tender assisted drilling for Ofrima Udele Project), and TB 3230 (FSO for Ofrima Udele Project).”
Addax is mum
When Addax Media Relations Officer, Bola Asemota, was contacted by TheNiche for comment, she requested that the enquiry be emailed to her.
But several days after the allegations were emailed to her, she did not respond despite reminders.
Historical defence
The looming mass sack announced by the company has rekindled labour dispute between management and PENGASSAN.
Addax had cited “unresolved issues with the NNPC” that led to a termination of crude lifting, unresolved “side letter issue”, and low oil prices, as three major reasons for the proposed staff cuts.
Addax said in a statement that the reality of falling oil price prompted action by all exploration and production players in the oil and gas industry, and that Addax is taking appropriate measures to align to the realities of the market by reviewing every resource management affecting its bottom line.
But PENGASSAN countered that Addax had no justification for staff reduction because the problem is more of resource mismanagement rather than oil price fall, high operating cost, and other reasons given by the management.
Rather than sack workers, PENGASSAN urged Addax to address huge mismanagement of resources symbolised by a “wasteful and unsustainable lifestyle” of its Managing Director, Cornelis Zegelaar.
It argued that total employee cost is below 10 per cent.
