10,000 Nigerian oil contract jobs’ threatened by low oil prices

Over 10,000 contract staff on the employment of international oil companies (IOCs) and local crude producers will not be confirmed in 2019.

This came as the companies advanced plans to cancel many projects that they consider to be “uneconomic” with the current oil price slip rocking the global crude industry.

The contract staff members were working for the firms either through proxy or direct engagements. An industry source said last weekend that the current price slip, which, he said, pushed Nigeria and other oil producers into earlier major economic crisis, has made the decision by the oil companies to be justifiable.

“The hope by these contract staff that they may get direct employment is now dashed,” he said, adding that “over 10,000 staff will remain contract staff, if they do not even lose their jobs in 2019 if the trend of this falling oil prices continues in 2019. As I talk to you now, some projects that are considered uneconomic will not fly again. In fact, you will start hearing of the cancellation of many of them if these falling prices elongate into 2019.”

A management staff of one of the multi-nationals had earlier also indicated that IOCs operating in Nigeria had placed an embargo on employment. This, he said, was earlier caused by the difficult time that oil companies are going through in Nigeria coupled with the falling oil prices.

Source: New Telegraph