Employee unrest
In April 2008, workers of Mobil Producing Nigeria (MPN), an affiliate of Exxon Mobil, went on a strike over pay and working conditions.
Exxon Mobil, the largest oil producer in Nigeria, produces about 800,000 barrels per day in a joint venture with the state. The company’s equity share is around 427,000 bpd. The eight day strike by workers resulted in the stoppage of the full production of 800,000 barrels per day and forced the company to declare force majeure on its shipments. Therefore, the company could not fulfill contractural obligations to clients.The strike resulted in a decline of the Exxon Mobil’s oil production by more than half.
Further, in May 2008, port workers of Exxon Mobil carried out a strike at the Los Angeles-area refinery in Torrance, California. Such employee actions adversely affect the operations of the company and result in decline in the productivity.