PENGASSAN begins strike to protest job cuts

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The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) said it began an indefinite strike on Monday to protest unfair labor practices at a local petroleum-exploration company, Bloomberg reports.

The union, which represents managerial employees in the oil industry, stopped working after talks late Sunday between its leaders, Nigeria’s labor minister and officials of Neconde Energy Ltd. to avert the action were deadlocked. Babatunde Oke, a spokesman for PENGASSAN said talks would however resume by 11 a.m. local time.

Long lines of cars were forming at fuel stations on Monday following the strike as people anticipate supply shortages because of the strike, Lagos-based CSL Research said in an emailed note to clients. While the current strike won’t immediately impact crude production and loading, it may worsen local petrol distribution if allowed to continue, Oke said.