Global Processing

Nigerian oil union opposes Chevron sale

September 30, 2008

Bizjournals reports that Nigeria’s top union for oil workers is against Chevron Corp.’s proposed sale of Texaco stations and other assets in the West African nation. Chevron plans to sell 350 Texaco stations in Nigeria to Corlay Global SA, a Panama business. The sale also includes two aviation facilities, lubricants blending plant and a commercial and industrial fuel business. Union troubles in the region are part of a pattern of both legal and criminal action against big oil companies working in Nigeria. Local residents of Nigeria have long sought money and other concessions from oil businesses working in the area — including those owned by their own government. Militants have attacked oil installations, blown up pipelines, and kidnapped oil company employees. This labor fight and these sales don’t affect Chevron’s upstream business —finding oil and pumping it out of the ground — in the area. In August the San Ramon company agreed to sell 2,000 Texaco gas stations and related businesses in Brazil for about $730 million.