20 August 2016, Lagos – The Nigeria Liquefied Natural Gas (NLNG) has given an insight into why it decided to reduce the wages of the seafarers working for one of its subsidiaries, NLNG Shipping Management Limited (NSML).
It stated that its decision to review manning levels and wage scale for officers on board one of its subsidiaries, Bonny Gas Transport (BGT) vessels was in line with the depressed global market situation.
The firm explained that besides the 60 per cent reduction in its revenues, global oil price have dropped from $140 to about $40 per barrel in recent times .
Signed by its General Manager (External Relations), Dr. Kudo Eresia-Eke, NLNG revealed that the reviewed manning levels and wage scale would only become effective on September 1, 2016.
The statement which was made available to THISDAY said: “This action is in line with the depressed global market situation, and consistent with prevailing industry rates – and has been taken in the interest of the sustainability of the business. In reality, the reviewed wage scale cannot be said to be a salary reduction as claimed. The fact is that company has simply adjusted and aligned wages with internationally obtainable benchmarks”.
Continuing, Eresia Eke said: “For example, our Nigerian officers’ dollar denominated wages upon conversion at existing rates far exceed wages for their peers who are paid in naira. This decision has been taken in absolute good faith, in response to a more than 60 per cent reduction in company revenues and global oil price, which have dropped from $140 to about $40 per barrel. Several BGT vessels have already been laid up while many more areas of reduction are being explored. This is consistent with the national oil company guideline for relevant industry operators to reduce OPEX costs by 40 per cent.
- This Day