US embassy cable - 03ABUJA813

UNCLAS ABUJA 000813 
 
SIPDIS 
 
 
E.O. 12958: N/A 
TAGS: CASC, ASEC, EPET, ENRG, ECON, PINS, PGOV, NI 
SUBJECT: NIGERIA: AGREEMENT REACHED ON OIL RIG HOSTAGE 
CRISIS 
 
 
REF: A. ABUJA 810 
     B. ABUJA 807 
     C. ABUJA 806 
     D. ABUJA 768 
 
 
1. National Union of Petroleum and Natural Gas Workers 
(NUPENG) local and national leadership on May 3 agreed 
unconditionally that all 273 hostages and 99 striking workers 
on board the four Transocean Forex Sedco rigs near Port 
Harcourt would be allowed to disembark. The Settlement was 
negotiated by Nigeria Labor Congress (NLC) President Adams 
Oshiomhole, who was the real hero in this crisis. Oshiomole 
said the local NUPENG leadership had been in communication 
with the striking workers on the rig, and they had agreed to 
comply. Managing Director of Transocean Sedco Forex Ian 
Clark, who did not participate in the negotiations but was 
allowed to state his company's position as the session 
opened, also confirmed to the Ambassador on May 3 that an 
agreement had been reached and all persons on board the rigs 
would be offloaded by ship and helicopter over the next few 
days. Some would disembark this evening, but it would 
probably be Sunday before all were on land, Clark added. 
 
 
2. In informing the Ambassador about the agreement, 
Oshiomhole emphasized that the company made no concessions in 
the negotiations and that in coming days, talks between the 
company and NUPENG and NLC representatives might occur at a 
place of the company's choosing. Oshiomhole further stressed 
that making concessions would have set a bad precedent for 
industrial relations in the country and insisted that had 
there been concessions, other workers would seek to use 
similar tactics in the future. Clark, meanwhile, said that 
the priority now was to get people off the rigs and that the 
striking workers would be dealt with next week. 
 
 
3. Clark said that he was enormously appreciative of Embassy 
efforts in helping to resolve the crisis. In particular, he 
was grateful for our efforts to involve President Obasanjo as 
well as NLC President Oshiomhole whose efforts he said were 
key to resolution of the crisis. Comment: We will continue to 
monitor the situation over the weekend to ensure that the 
agreement is actually implemented. End Comment. 
 
 
4. The following is the text of the agreement: 
 
 
(Begin Text) 
COMMUNIQUE OF MEETING BETWEEN THE 
MANAGEMENT OF TRANS OCEAN, NUPENG AND 
PENGASSAN BROKERED BY THE 
NIGERIA LABOUR CONGRESS ON 
2ND OF MAY 2003 
 
 
Following the intervention of the Nigeria Labour Congress 
(NLC) and under its auspices, the management of Trans Ocean, 
the national secretariats and local chapter of NUPENG and 
PENGASSAN met over the ongoing industrial action on some of 
the operational sites of the company. 
 
 
It was agreed by all parties that the industrial action be 
suspended immediately and the rigs be vacated forthwith to 
pave way for the restoration of normalcy in their operations. 
 
 
The meeting also agreed that the national leadership of the 
NLC, NUPENG and PENGASSAN would further assist the parties to 
immediately evolve a framework of dialogue to deal with the 
concerns of the management and the workers in a mutually 
acceptable manner. 
 
 
Management of Trans Ocean and the unions expressed 
appreciation for the intervention of the NLC. 
 
 
Signed: 
Adams Aliyu Oshiomhole, President, NLC 
Ian Clark, Managing Director, Trans Ocean 
Peter Akpatason, President, NUPENG 
L.B. Ogbeifun, President, Petroleum and Natural Gas Senior 
Staff Association (PENGASSAN) 
Salvation Akpaghoro, NUPENG, Transocean Branch 
Uzomah Samuel, PENGASSAN, Transocean Branch 
 
 
Witnessed by: 
S.A. Ajibola, Federal Ministry of Labor and Employment 
Austin Ezenwaka 
Nigeria National Petroleum Corporation 
(End Text) 
JETER