Nigeria’s oil production is facing a new crisis as host communities in Bayelsa State have given a 14-day ultimatum to NNPC Exploration & Production Limited (NEPL). They are threatening to shut down operations at Oil Mining Leases (OMLs) 86 and 88 over a dispute regarding security contracts.
In a letter dated March 28, 2025, obtained by our correspondent, community leaders from Ezetu 1, Fishtown, Ezetu 2, Ekeni, Koluama 1, Koluama 2, Foropa, and Sangana expressed their dissatisfaction. They accused NEPL’s subsidiary, Pennington Production Limited, of breaching agreements by terminating Multiplan Nigeria Limited’s security contract and awarding one of the three security vessel contracts to an unknown contractor.
Communities demand reinstatement of security contracts
The communities argue that these security contracts have been in place since 2007, originally introduced by Chevron Nigeria Limited before it divested the oil blocks to NNPCL. They insist that NEPL had agreed to uphold all existing agreements, including the security contracts, when it took over in 2021.
The KEFFES Host Communities Development Trust, representing the affected areas, has issued three key demands:
- Reinstatement of all three security vessel contracts
- Full payment of outstanding invoices from 2024
- An urgent meeting with NEPL’s management within seven days
Threat to shut down oil production
The host communities have warned that if their demands are not met within 14 days, they will mobilise to shut down operations at OMLs 86 and 88. They stressed that the changes to security arrangements were made without consulting them, violating their agreements with NEPL.
“If no resolution is reached, we will take necessary steps to ensure a complete shutdown of OMLs 86 and 88,” the letter stated. “Ignoring our demands will jeopardise the peace and trust that have sustained oil operations in the region.”
The dispute raises concerns about potential disruptions to Nigeria’s oil production and revenue. It also highlights ongoing tensions between host communities and oil firms, especially as international companies exit onshore operations, leaving state-owned firms to navigate complex community relations.
Attempts to get a response from NNPCL spokesperson Femi Soneye were unsuccessful at the time of filing this report.
