27 May 2012
MUSCAT -- Officials of the Ministry of Oil and Gas scrambled yesterday to resolve an outbreak of industrial action that threatened crude oil output from key production sites in the southern part of Petroleum Development Oman's (PDO) concession. According to reports, the strike action involves some categories of Omani staff employed by private contractors providing oilfield services to PDO.

They struck work last Wednesday reportedly to press for the payment of a special 'risk' or 'hardship allowance' as recompense for working in what they regard as potentially hazardous conditions. A number of sites within the southern part of PDO's sprawling Block 6 concession are believed to have been affected by the strike. They include oilfield facilities and camps in and around Marmul, Amal, Nimr and even Qarn Alam, it is learnt.

A senior government official who declined to be named said the crisis had no immediate impact on oil production. However, he warned that any prolonged strike action by the contractor crews could adversely impact output. Underscoring these concerns, senior officials of the Ministry of Oil and Gas airdashed to Marmul yesterday to take stock of the situation, as well as to negotiate an end to the crisis.

It is learnt that Nasser bin Khamis al Jashmi, Oil and Gas Ministry Under-Secretary, was leading efforts to bring about an early resolution of the strike action. A PDO official, while confirming the work stoppage, stated: "PDO is working closely with the contracting management and relevant government authorities to resolve the issue."

Last year, PDO operations were hit by a wave of stoppages mainly involving contractor staff demanding higher salaries and improved benefits. In many of the cases, the walkouts were spearheaded by local transport staff who refused to ferry employees from residential camps to oilfield sites scattered around the central desert. It is believed that a similar tactic was employed in the latest round of industrial action.

Another ploy commonly used in the past year is to time the stoppage typically on a weekend in a move designed to catch authorities off-guard and thereby heap pressure on them to come to an agreement.

Again, the current protest began late on Wednesday at the start of the weekend holiday.

Earlier this year, PDO Managing Director Raoul Restucci blamed work stoppages along with adverse weather and other factors, for the loss of 410 days worth of work last year. Late yesterday evening, a source familiar with the progress of discussions with the striking workers, said officials were hopeful of an early breakthrough. Both sides appeared to be inching towards a solution during talks that began yesterday.

© Oman Daily Observer 2012