By NY Staff
AbdulWahab al-Washali, The general secretary of conflict resolution at the petroleum syndicate has accused oil company DNO-Yemen of disrespecting local and international business ethics. He considers the arbitrary dismissal of nearly a hundred employees unprofessional and corrupt.
“DNO has taken this decision because of the war led by the Saudi coalition on Yemen and the low security in the country,” said Al-Washali. This is unacceptable, especially as other oil companies like OMV and Total are still practicing their oil activities normally and still pay their staff.
DNO-Yemen AS is a Norwegian oil company that has been doing business in Yemen since 2000 and was supposed to act professionally to hand over the three oil blocks to the government rather than halting operations and dismissing its staff.
Al-Wahsli has attributed this to the series of strikes conducted by the staff to gain more rights over the past few years, saying that the company has taken this opportunity while it knows that the government is inoperative. The decision will make the company face a court case that may end with repealing its Production Sharing Agreement (PSA) with Yemen’s Ministry of Oil and Minerals.
By April 27th, the company had sent notification messages to all its employees via SMS and emails informing them of the termination decision. Later on, DNO local staff directed a message to the Ministry of Oil and Minerals to carefully investigate the unjustified announcement of DNO and compare it to other oil companies operating within the same basin in al-Masila, Hadhramout. The staff was disappointed by DNO’s total ignorance and disrespect of business ethics. “I have been left a worthless person and my kids will lose their future by such a disrespectable company,” said one employee.
The government keeps 70% of profits and the company owns 30%. Over the past years, the company has made good profits and it should respect the past and present for its future partnership with the government of Yemen. “If the company does not want it that way, the company should pay the difference of the past prices compared to the new ones,” said al-Washali.
DNO-Yemen AS oil Block 32 Howarime (Nabraja) – PSA is still valid until 2017, Tassour Block 43 in south Howarime is valid until 2020, and Block 47 is valid until 2030. According to these agreements, the company has no right to terminate staff contracts. The Oslo-listed operator stated, “DNO has suspended production in Yemen due to the continuing deteriorating of security conditions in the country.”