ExxonMobil Strikes Deal to End Nigerian Strike

ExxonMobil has reached a deal with a Nigerian oil union to end a strike which has shut down production for more than eight days.

The stoppage has halted 800,000 bpd of production in Nigeria and forced the company to halt shipments earlier this week.

The PENGASSAN managers union struck a deal with the US oil major on four out of their five demands, but negotiations over the size of a salary increase are set to resume, union representatives told Reuters.

The union, which is seeking a 25 percent wage hike, told the news agency that Exxon has agreed to reduce the quota of expatriate workers, improve pensions, diminish casual labour and improve pipeline safety.

The strike, along with attacks by Niger Delta rebels, have slashed production in Nigeria by more than half, helping to drive prices to a record high of nearly US$120 a barrel on Monday this week.

Oil prices have fallen to their lowest for two weeks at US$113 a barrel.

By staff writer