News: Oil Companies in Nigeria cut 120,000 Jobs

As a result of the continued fall in oil prices, Nigeria’s oil and gas companies have cut 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 said.

Onuegbu, who is the Rivers State Chairman, Trade Union Congress of Nigeria, said 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 losses.

He added that the current situation in the oil and gas industry had led to the reduction in exploration and production activities globally, saying that the cost-cutting measures such as massive job cuts had been embarked upon in Nigeria and other countries.

According to him, the low oil prices, which started in the second half of 2014, will likely continue up until 2019.

Onuegbu said, “The sector and the economy have seen unprecedented number of job losses, some 120,000 direct and indirect jobs have been lost in the Nigerian oil and gas sector, as companies and organisations struggle to keep afloat in the midst of pressures from international crude oil price and Nigeria’s inability to make needed reforms, especially the passage of the Petroleum Industry Bill, diversification of the economy and stoppage of crude oil theft.”

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.

 Culled from Punch Newspaper