Posted by By Yakubu Lawal Asst. Energy Editor on
THE structural workforce downsizing in the oil industry may persist, as Shell Petroleum Development Company of Nigeria Limited (SPDC) said that the on-going restructuring exercise of the company, which entails lay-off as major tool, will continue until the end of this year.
THE structural workforce downsizing in the oil industry may persist, as Shell Petroleum Development Company of Nigeria Limited (SPDC) said that the on-going restructuring exercise of the company, which entails lay-off as major tool, will continue until the end of this year.
The re-structuring, which has affected over 1,000 workers, was aimed at increasing the company's business operations in the country.
Shell's External Relations Director, Rev. Precious Omuku, in a statement says "the new Shell Nigeria organisation" took off January 1, 2005
Omuku stressed that the re-structuring was the outcome of a far-reaching exercise, which began more than a year ago, pointing out that the new company is headed by a Nigerian and its headquarters moved from Lagos to Port Harcourt, the Rivers State Capital.
The statement adds that the headquarters of Shell Exploration and Production Africa region has also been relocated from The Hague in Holland to Lagos, Nigeria.
Besides increasing efficiency, he said the re-structuring is also aimed at achieving cost reduction, due to light budget regime and meeting production aspirations.
Omuku said: "Many new appointments have been made while some staff are being released from this month. It is a continuing process until the end of the year, and we are, therefore, not in a position to provide specific numbers now."
The External Relations director explained that this aspect of the exercise had been the subject of sustained and wide ranging consultation with all categories of staff and other key stakeholders.
"Due care has been take to ensure that the rights of employees and the obligations of the company are fully maintained and respected all through," he said.
According to him, all the staff that were being relief of their jobs had been paid their due entitlements adding that the SPDC would provide counselling and other support programme to them.
He added that this phase being passed through by the company was a milestone in its "securing our future" (SOFU) programme, which had key features as an integrated business systems project, a structural cost review and an operating model review.
Omuku said that other aspects of the programme's implementation would involve the adoption of a more efficient organisational structure as well as streamlined business process.
"These would eliminate resource fragmentation and place the company firmly on the path of sustained growth," he said.
He stated that the SOFU exercise has a lot of benefits including drastical reduction - operating costs, thereby freeing additional funds for investment in capital projects, especially asset integrity which will help the company to achieve its projected production aspirations.
"The management of SPDC wishes the concerned staff well in their future endeavours and enjoins those retained to brace up for emerging challenges of the re-organisation programme" he said.
In year 2003, SPDC proposed a full oil and gas growth programme budget for the joint venture of $2.7 billion.
But, government made available to the joint venture $2.3 billion. To this effect, some oil and gas development projects were deferred.
Oil production increased during the period to an average of 910,000 barrel's per day.
SPDC's gas supply during the year to the Nigeria LNG plant increased while about 1,171 million standard cubic feet per day (mmscf/d) of gas was sold against 1,100mmscf/day in 2002.
SPDC is a major stakeholder in the NLNG and supplier to the plant.
Shell produces over one million barrels of crude oil per day.