Tension as host communities threaten oil production shutdown

Nigeria’s oil production faces a fresh crisis as host communities in Bayelsa State’s coastal region have issued a 14-day ultimatum to NNPC Exploration & Production Limited (NEPL), threatening to shut down operations at Oil Mining Leases (OMLs) 86 and 88 if their grievances over security contracts are not addressed.

The ultimatum, conveyed in a letter dated 28th March 2025, was signed by key representatives from the affected communities, including 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 dispute centres around NEPL’s decision to terminate the contract of Multiplan Nigeria Limited, a community-nominated security contractor, and reduce the number of community-owned security vessels from three to two. One of the vessels has now been awarded to a contractor unknown to the host communities, a move they view as a violation of long-standing agreements.

OMLs 86 and 88 were previously operated by Chevron Nigeria Limited (CNL) before being divested to NNPCL. The eight host communities—Sangana and Fish Town in Brass Local Government Area, as well as Koluama 1, Koluama 2, Foropa, Ekeni, Ezetu 1, and Ezetu 2 in Southern Ijaw Local Government Area—have long relied on these security contracts as part of an arrangement introduced by Chevron in 2007 to maintain stability and safeguard oil infrastructure.

In their letter, the communities reminded NEPL that when it took over operations in 2021, it had agreed to inherit all existing liabilities and contracts, including the security vessel arrangements. They argue that the vessels are community-owned assets, and any changes to their management should have been discussed with them beforehand.

The KEFFES Host Communities Development Trust (KHCDT), representing the affected areas, has demanded the immediate reinstatement of the three security vessel contracts, full payment of outstanding invoices from 2024, and an urgent meeting with NEPL’s management within seven days to resolve the issue.

The communities 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 threat of a shutdown raises concerns over potential disruptions to Nigeria’s oil production and revenue, as the affected oil blocks are important assets in the country’s offshore sector.

The standoff also underscores the broader tensions between host communities and oil companies, especially as international oil firms divest from onshore and shallow water operations, leaving state-owned and local operators to navigate complex community relations.

ALSO READ FROM NIGERIAN TRIBUNE