It was gathered that the company's shut in of crude oil production commenced since Friday last week, indicating that over one million barrels of crude oil have been shut in since then. The company's workers in a letter by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) addressed to the permanent secretary in the Ministry of Labour and Productivity disclosed that the restructuring exercise clearly favours expatriates to the detrimens of Nigerians. "We are surprised that while dialogue is on-going, and with the intervention and advice of the Ministry of Labour, which called for a meeting on July 6,2004, management decided to toe this part," a PENGASSAN letter to the Ministry of Labour, signed by Dr. M.M. Fadakinte, the PE said. The letter urged the permanent secretary in the ministry of labour to call on the management of the company to re-open the production fields and allow the process of dialogue to continue. In another letter addressed to the company's managing director, the union noted that it was surprising that it was the party inflicting the injury that has resorted to a shut down instead of the aggrieved which is well disposed to dialogue. "For the avoidance of doubt, notwithstanding your seeming lack of commitment in resolving our valid grievances, we the aggrieved have not embarked on any industrial action," the letter signed by PENGASSAN branch chairman stated. The issues raised in the union's collective grievances include: *Lopsided organisational structure; *Expatriate influx; *Disparity in the conditions of service for Nigerians on expatriation as against other nationals within the group; *Lack of empowerment for Nigerians; Geo-sciences and Reservoir studies in France. In its re-action to the development, the federal ministry of labour and productivity has in a letter dated 4th June, 2004, invited both the union and management of the company to a meeting at the federal secretariat complex in Port Harcourt today as part of efforts to resolve the conflict. The ministry in a letter signed by Mrs O. Olarenwaju, a deputy director in the ministry also urged both parties not to take any action capable of threatening industrial peace and harmony in any way. Efforts to get a reaction from the company's external relations department proved abortive at the time of filing this report. In another letter dated 5th of June, 2004, the union pointed out that the company's closure of its five production facilities was in direct violation of the advice by the ministry of labour and productivity, adding that the decision to close down the wells was a unilateral one by the managing director. "This action took the entire staff by surprise for obvious reasons. In the 42 years history of our company's existence in Nigeria, this is the first time an MD/CEO will unilaterally order a shut down of production facilities allegedly for unfounded reasons. "While Nigerians have continuously complained of frustrations, imbalances, and other forms of oppression, injustice, discriminatory practices, etc, meted out on our members in the system over the years, the MD/CEO have not considered it necessary to take steps towards achieving reddress," the union pointed out. In a related development, Dr. Brown Ogbeifun, the PENGASSAN president has raised alarm over threat to his life after four armed men allegedly stormed his Abuja residence asking after his whereabout. The armed men were alleged to have broken into his neighbours house thinking it was his residence. It was gathered that Dr. Ogbeifun was not at home when the armed men visited, while the security man at the gate was beaten to a state of coma. Three other girls in the neighbour's house were also locked up in a toilet, while the house was ransacked in search of the unionist. Dr. Ogbeifun in his reaction disclosed that the matter has been reported to the Lugbe police station in Abuja. PIN//Alafrica