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12 May 2008 14:20 GMT | more prices >>

Nigeria strikers stay out


Wire services

Striking oil workers who have shut down ExxonMobil's production in Nigeria pledged to carry on their seven-day strike after failing to reach a deal with the US supermajor at talks yesterday.

A spokesman for state-run Nigerian National Petroleum Corporation, which is mediating the talks, said earlier that leaders of the Petroleum & Natural Gas Senior Staff Association of Nigeria (Pengassan) had agreed to suspend the strike while talks continued.

But union leaders said the stoppage, which has shut down virtually all ExxonMobil's 800,000 barrels per day of production in the West African country, would continue and the two sides would reconvene for negotiations today.

"We could not reach an agreement. Meanwhile, the strike continues," said Olusola George-Olumoriti, chairman of Pengassan's Mobil Producing Nigeria branch.

The dispute forced ExxonMobil on Monday to declare force majeure on Nigerian shipments, meaning it could not fulfill contractural obligations to clients.

The first day of government-mediated negotiations broke up on Tuesday without agreement after union representatives called for a 25% salary increase and improvements to pensions and working conditions.

Delegates to the talks, who asked not to be identified, said that by yesterday there was agreement on all points except the size of the salary increase.

"The mediators have asked both sides to return to the negotiating table. Hopefully we will be able to reach a solution," ExxonMobil spokeswoman Gloria Essien-Danner had told Reuters earlier.

ExxonMobil produces in a joint venture with the Nigerian state and its equity share is around 427,000 bpd.


01 May 2008 06:49 GMT  | last updated: 01 May 2008 10:10 GMT

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