Nigeria’s oil production is facing a new crisis as host communities in Bayelsa State’s coastal region have issued a 14-day ultimatum to NNPC Exploration & Production Limited (NEPL). They have threatened to shut down operations at Oil Mining Leases (OMLs) 86 and 88 unless their concerns over security contracts are addressed.
The ultimatum, communicated in a letter dated March 28, 2025, and obtained by our correspondent on Wednesday, was signed by prominent representatives from the affected communities. These include Chief Christopher Tuduo (Ezetu 1), Dr. Amakiri Ngozi (Fishtown), Mr. Tuadei Alex C. (Ezetu 2), Mr. Aneri Ebimene (Ekeni), Engr. Ileberi Ebiwei (Koluama 2), Chief Thankgod Bunafigha (Koluama 1), Chief Saighe Martins (Ezetu 2), Ekemeghuesuotei Sese (Foropa), and Hon. Uroh Kiani (Sangana).
The communities argue that NEPL’s recent actions contradict the terms of existing agreements and jeopardize the trust and cooperation that have sustained peaceful operations in the region. The letter states: “We write to formally address the recent resolution by the management of Pennington Production Limited (a subsidiary of NNPC and operators of OMLS 86/88) regarding the termination and demobilization of Multiplan Nigeria Limited and the awarding of three community service security vessel contracts for the OMLS 86 and 88 operational fields.”
The dispute stems from NEPL’s decision to end its contract with Multiplan Nigeria Limited, a security contractor nominated by the community, and reduce the number of community-owned security vessels from three to two. One of the vessels has been awarded to a contractor unfamiliar to the host communities, which they view as a breach of longstanding agreements.
Previously operated by Chevron Nigeria Limited before being divested to NNPCL, OMLs 86 and 88 have been underpinned by community security contracts since 2007, an arrangement designed to ensure stability and protect oil infrastructure. These agreements have continued uninterrupted since NEPL took over operations in 2021.
The affected communities remind NEPL that, upon taking over the operations, the company agreed to inherit all liabilities and contracts from Chevron, including the security vessel agreements. They contend that the vessels are community-owned assets and that any changes to their management should have been discussed with them beforehand.
Representing the affected communities, the KEFFES Host Communities Development Trust has called for the immediate reinstatement of all three security vessel contracts, the full payment of outstanding invoices from 2024, and an urgent meeting with NEPL’s management within seven days to resolve the issue.
The letter further reads: “The three security vessels represent long-standing community service contracts initiated in 2007, which were upheld through 2020 under Chevron Nigeria Limited. These contracts continued uninterrupted after the divestment of the fields to NEPL in 2021. It is essential that NEPL honors all prior agreements, including the security vessel contracts, as agreed during initial discussions between NEPL, Chevron, and the host communities.”
The communities also warned that if their demands are not met within 14 days, they will take all necessary steps to shut down oil production at OMLs 86 and 88. The letter concludes: “If no satisfactory resolution is reached within fourteen (14) days of this correspondence, the KEFFES host communities will have no choice but to mobilize all available resources at their disposal to ensure a complete shutdown of OMLs 86 and 88 operations until the matter is resolved to the satisfaction of the host communities.”
This threat of a shutdown raises concerns about potential disruptions to Nigeria’s oil production and revenue, as the affected oil blocks are crucial assets in the country’s offshore sector. The situation also highlights ongoing tensions between host communities and oil companies, particularly as international oil firms divest from onshore and shallow water operations, leaving state-owned and local operators to handle complex community relations.
Efforts to obtain a comment from NNPCL spokesperson Femi Soneye on the matter were unsuccessful, as he did not respond to inquiries.