Nigeria union, Exxon resume talks to end 8-day strike

By Daniel Flynn

LAGOS (Reuters) - Nigerian oil union leaders restarted talks with Exxon Mobil on Thursday in a bid to end an eight-day-old strike which has shut down nearly all the U.S. oil major's production in the West African country.

Negotiations between the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and Exxon management resumed for a third day in the capital Abuja after the two sides failed to reach an agreement on wage increases on Wednesday.

The stoppage has shut down virtually all Exxon's 800,000 barrels per day of production in Nigeria. It forced the U.S. oil major on Monday to declare force majeure on its shipments, meaning it could not fulfill contractual obligations.

"The status (of production) remains the same," said Exxon Mobil spokeswoman Gloria Essien-Danner. "There will be no change until they come out of the talks. The outcome of the talks will determine what happens with production."

The strike and attacks by Niger Delta rebels have slashed production in the world's eighth-largest oil exporter by more than half, driving prices to a record high around $120 a barrel on Monday. Oil has since fallen back to around $115 a barrel.

Union representatives have called for a 25 percent salary increase and improvements to pensions and working conditions.

Delegates to the talks, who asked not to be identified, said that by Wednesday there was agreement on all points except the size of the wage increase.

STRIKE CONTINUES