July 17, 2018

Oil sector employment stagnates

Oil sector employment stagnates

The declining price of crude oil in the international market has continued to take its toll on the Nigerian oil and gas sector, as no employment has been created in three months, between April and June 2015, the National Bureau of Statistics, NBS, said. Oil and gas companies globally are threatening to reduce their workforce significantly, as low oil price has started to take its toll on the companies.

Royal Dutch Shell, had a few days ago, said it will axe 6,500 jobs this year, and step up spending cuts to deal with an extended period of lower oil prices. In addition, Total E & P Nigeria has allegedly begun the process of winding down some of its operations in Nigeria, with plans to relocate some of the staff to other departments, while it plans to disengage majority of the staff.

In addition, Total has sold its Abuja Office, and relocated all staff to its new office complex in Victoria Island, Lagos.   Also, Mr. Emeka Ene, Chairman, Petroleum Technology Association of Nigeria, PETAN, had confirmed that indigenous companies have begun to lay off workers and cut salaries as a way of coping with the challenges of the crude price crash at the international market.

He further said that those who could cope with the downturn in the industry have had to close shop, pending when the fortunes improved. The NBS, in its Job Creation Survey for the Second Quarter, Q2 2015, stated that a total of 141,368 jobs were created in the economy, dropping by 69.9 per cent compared with 469,070 jobs created in the economy in Q1 2015.Read more

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