Energy
Chevron says it has no plan to move Nigerian jobs outside the country
The Management has dismissed reports that Chevron Nigeria Ltd has concluded plans to relocate jobs outside the country.
The Management of Chevron Nigeria Limited (CNL), declared that it has no plans to migrate Nigerian jobs outside the country.
According to News Agency of Nigeria (NAN), this clarification was made in a statement by Chevron’s General Manager for Policy, Government, and Public Affairs, Mr Esimaje Brikinn, on Friday, October 2, 2020.
READ: Chevron crisis deepens, as workers call for MD’s removal, facilities shut down
Brikinn disclosed this, following an allegation by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), that Chevron Nigeria Limited has concluded plans to relocate jobs outside the country.
He said, however, that the company was only reviewing its manpower requirements in the light of the changing business environment.
According to him, the new organisational structure will require approximately 25% reduction in the workforce across the various levels of its organisation.
READ: Chevron crisis deepens as NUPENG issues new threat
Brikinn in his statement said, “The aim is to have a business that is competitive, and have an appropriately sized organisation with improved processes. This will increase efficiency and effectiveness, retain value, reduce cost, and generate more revenue for the Federal Government of Nigeria,
“We have prospects for our company in Nigeria; however, we must make the necessary adjustments, in light of the prevailing business climate. We need everyone’s support to get through these tough times stronger, more efficient, and more profitable, in order to sustain the business,”
The Chevron spokesman also said that the oil major was in agreement with both its Joint Venture partners, including NNPC and the Department of Petroleum Resources (DPR) on the process.
READ: Chevron crisis deepens as NUPENG issues new threat
“We are actively engaging our workforce, to ensure they understand why this is being done. We will continue to consistently engage all relevant stakeholders, including the leadership of the employee unions, as we continue this process of business optimization,” he concluded.
Earlier, the Petroleum and Natural Gas Senior Staff Association of Nigeria, Chevron Branch, had accused CNL of sacking 600 Nigerian workers, amidst plans to relocate jobs to America.
Its Branch Chairman, Mr Ote Oyegbanren, and Secretary, Mr Lavin Aghaunor, in a statement said the workers being sacked were lower cadre employees, whose salaries were negligible when compared with that paid to their American expatriate counterparts.
READ: How reforms by the Nigeria Customs are aiding e-commerce
The national PENGASSAN, however, appealed to Chevron Management to suspend the process, and allow both parties to reach an agreement on an amicable voluntary separation exercise, such that workers may opt to exit. This current conciliatory offer was rebuffed.
Nairametrics had earlier reported that Chevron Nigeria Limited was planning to reduce its workforce by as much as 25%, in a bid to align with the changing business environment.
Energy
Power: Nigeria records transmission peak of 5,459.50MW – TCN
TCN has announced that it hit a peak transmission of 5,459.50MW on the 28th, October 2020.
The Transmission Company of Nigeria (TCN) announced that it hit a peak transmission of 5,459.50MW on the 28th, October 2020.
This was disclosed on Thursday in a statement by Ms Ndidi Mbah, General Manager, Public Affairs, TCN.
5️⃣,4️⃣5️⃣9️⃣.5️⃣0️⃣ Megawatts💡↗️
Good Job from the Men and Women of the Transmission Company of Nigeria and everyone within the Power Sector.
— Engr. Sale Mamman (@EngrSMamman) October 29, 2020
She said Nigeria hit the milestone on October 28th and surpassed the earlier record of 5,420.30MW achieved on August 18.
What you should know
Nairametrics reported that the Minister of Power, Engineer Sale Mamman, disclosed that Nigeria’s installed grid power generation capacity has grown from 8,000MW to 13,000MW under the leadership of President Muhammadu Buhari.
“The new peak surpasses the 5,420.30MW achieved on Aug. 18 by 39.20MW,” Ms Mbah said.
The Acting Managing Director, Mr Sule Ahmed Abdulaziz, commended all the players in the power sector value chain for the feat.
He attributed the gradual but steady improvement in the quantum of power delivery to collaboration by the sector players, as well as, the unbridled effort by the Federal Government – through the Ministry of Power – in setting the right environment for seamless operations.
The Acting Managing Director said the company will continue workings towards improved power transmission across the nation.
Nairametrics reported in August that the Federal Government of Nigeria revealed that the Siemens $2 billion power deal, under the Presidential Power Initiative (PPI) will save the nation over $1 billion annually.
Structure of the PPI funding:
- 85% from a consortium of banks guaranteed by the German government through credit insurance firm, Euler Hermes.
- 15% of the FG’s counterpart funding.
- 2–3 years moratorium.
- 10–12 years repayment at concessionary interest rates.
Energy
Exxon Mobil to cut 14,000 jobs as pandemic hit oil demand, prices
Exxon Mobil announced it will slash its global workforce by 15% over the next two years, as it struggles to preserve dividends.
Exxon Mobil Corp on Thursday, October 30, 2020, announced that it will reduce its global workforce by 15% by the end of 2022 – an unprecedented culling by North America’s biggest oil explorer, as the coronavirus pandemic hits energy demand, prices, and struggles to preserve dividends.
The job cuts are expected to include 1,900 U.S. jobs – mostly in Houston, the headquarters for its US oil and gas businesses – as well as layoffs previously announced in Europe and Australia and reductions in the number of contractors, some of which have already taken place.
READ: Exxon Mobil, Chevron record their worst losses in history
READ: Presco Plc projects N24.53 billion turnover in Q4 2020
This was disclosed in a statement that was released by the energy giant on Thursday, October 30, 2020.
The staff reduction is part of the latest effort by the Chief Executive Officer, Darren Woods, to curtail spending and halt the worst string of quarterly losses since Exxon assumed its modern form with the 1999 takeover of Mobil Corp.
READ: Chevron considers divesting from Nigeria, to focus on U.S Shale Oil
What you should know
Exxon and other oil producers have been slashing costs due to a collapse in oil demand and prices, as well as ill-timed bets on new projects. The Big Oil rivals of Exxon are also cutting thousands of jobs in response to the pandemic-induced demand slump. BP Plc plans to slash 10,000 jobs, Royal Dutch Shell Plc will cut as many as 9,000 roles, and Chevron Corp. has announced around 6,000 reductions.
Norton said that Exxon’s workforce stood at about 88,000 people, including 75,000 in-house employees and about 13,000 contractors as of year-end 2019.
READ: Why the NNPC is being dragged to US courts by Exxon Mobil, Shell
Exxon’s job cut is a sign of its weakened financial position compared to its former status as the S&P 500 Index’s biggest company less than a decade ago, and a profit powerhouse used to ride out oil-price cycles.
This year’s downturn has been particularly damaging because it also affected refining, usually a cushion in times of low oil prices. Also, it came at a time when Exxon was already increasing borrowing to fund a large expansion program. The company was forced to retreat on these plans in April, reducing capital spending by $10 billion and delaying or scaling back most of the major projects.
READ: Exxon begins talks with domestic firms to divest businesses in Nigeria
The stock has plunged more than 50% this year. Its dividend yield is now more than 10%, indicating that investors are anticipating a cut. Exxon maintained the quarterly payout on Wednesday and is expected to post its third consecutive quarterly loss when it reports earnings tomorrow.
What they are saying
The Company in its statement said, “These actions will improve the company’s long-term cost competitiveness and ensure the company manages through the current unprecedented market conditions.’’
Exxon’s spokesman, Casey Norton, through an email said that the total reduction means the company will reduce its workforce by about 14,000 people, split between employees and contractors from year-end 2019 levels. The cuts will come through attrition, targeted redundancy programs in 2021, and scaled-back hiring in some countries.
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What this means
Another set of job losses in the oil sector in Nigeria is looming. Nigeria is one of Exxon’s biggest operational bases in oil and gas exploration and production globally. Also, this is another setback after Shell announced 9,000 job cuts globally, which includes Nigeria, and the announcement by Chevron that it plans to reduce its staff strength in Nigeria by 25%.
Energy
FG to invest in the deployment of Mini-grid systems to power 5 million homes in 2021
The Minister said the government will invest in Mini-grid systems that will provide power for 5 million homes in 2021.
In a bid to provide remote communities with clean and affordable energy, the Minister of Power, Engineer Sale Mamman has disclosed that the Government is set to invest heavily in the deployment of Mini-grid systems that will provide power for 5 million homes in 2021.
This disclosure was made by Engr. Sale Mamman in a statement released into the mainstream media via his official Twitter handle.
READ: Electricity: Nigeria now has an installed generation capacity of 13,000MW – Minister of Power
It is virtually impossible to have the National grid covering every geographical point within Nigeria, that is why Government is investing heavily in the deployment of Mini-grid systems which can easily get to the most remote communities and provide clean, affordable energy.
— Engr. Sale Mamman (@EngrSMamman) October 29, 2020
The Minister explained that it is virtually impossible for the National grid to cover every geographical point within Nigeria. He emphasized that this reality prompted the present administration to sort out alternatives, and as a result, the Government is set to invest heavily in the deployment of Mini-grid systems, which can easily get to the most remote communities and provide clean, and affordable energy in 2021.
READ: Nigeria to fix irregular power supply in 40 years- Senate
What they are saying
The Minister, in his statement, said, “It is virtually impossible to have the National grid covering every geographical point within Nigeria, that is why the Government is investing heavily in the deployment of Mini-grid systems, which can easily get to the most remote communities and provide clean, affordable energy.
“In 2021, part of our priorities at the Ministry and two of its implementing agencies will be on providing these Mini-grid systems for communities and stand-alone home solar systems. We have a target of 5 million homes. Clean, affordable, and accessible energy for all.”
(READ MORE:FG set to create at least 5 million jobs for youths in the power sector – Minister of Power)
What you should know
The Minister of Power, Engineer Sale Mamman, at the 2021 budget defense before the House of Representatives Committee on Power in Abuja, yesterday disclosed that Nigeria’s installed grid power generation capacity has grown from 8,000MW to 13,000MW under the leadership of President Muhammadu Buhari.
READ: UPDATED: FG appoints Eweluka as NBET MD, as finance, power ministers wrestle
The Minister also pointed out that the distribution system had the capacity to evacuate 5,500MW of power, which is a significant improvement from 4,500MW in 2015.
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