Nigeria’s crucial oil production faces a significant threat as host communities in Bayelsa State have issued a 14-day ultimatum to NNPC Exploration & Production Limited (NEPL), warning of a complete shutdown of Oil Mining Leases (OMLs) 86 and 88. This dramatic move stems from a bitter dispute over security contracts, igniting tensions between the communities and the state-owned oil giant.
The ultimatum, detailed in a letter dated March 28, 2025, and signed by key community representatives, reveals deep discontent over 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. “This action is not only contrary to the established agreements but also undermines the trust and cooperation that have sustained peaceful operations in the fields,” the letter stated, highlighting the communities’ sense of betrayal.
The core of the issue lies in NEPL’s alleged breach of agreements made when it took over operations from Chevron Nigeria Limited in 2021. The communities assert that NEPL had agreed to inherit all existing liabilities and contracts, including the security vessel arrangements, which have been in place since 2007.
“These contracts have continued uninterrupted since the divestment of the fields to NEPL in 2021. Be reminded that during the introductory meeting between CNL, NEPL and the KEFFES host communities, NEPL agreed to accept all liabilities and assets from CNL as they appear in the agreements between CNL and the KEFFES host communities, which includes these security vessels contracts,” the letter emphasized.
The KEFFES Host Communities Development Trust, representing eight affected communities—Sangana, Fish Town, Koluama 1, Koluama 2, Foropa, Ekeni, Ezetu 1, and Ezetu 2—demands 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.
“Any new or renewed contracts signed with Multiplan Nigeria Limited or any other contractor must remain unexecuted to prevent the breakdown of peace and stability in the operational fields,” the letter warned.
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The communities have made it clear that if their demands are not met within 14 days, they will mobilize to shut down oil production at OMLs 86 and 88. This threat carries significant implications for Nigeria’s oil output and revenue, as these offshore oil blocks are crucial to the nation’s economy.
The dispute also sheds light on the broader challenges faced by host communities in Nigeria’s oil-producing regions. As international oil companies divest from onshore and shallow water operations, local and state-owned entities must navigate complex community relations and honor existing agreements.
I’ve observed that such disputes often escalate due to a perceived lack of respect for local agreements. The communities’ insistence on the restoration of previously agreed terms underscores the importance of honoring local agreements in the oil and gas sector.
Attempts to get a response from NNPCL spokesperson, Femi Soneye, were unsuccessful, adding to the uncertainty surrounding the situation. The coming days will be critical in determining whether a resolution can be reached, or if Nigeria faces another significant disruption to its oil production. The communities have clearly stated “If no satisfactory resolution is reached within fourteen (14) days of this correspondence, the KEFFES host communities will have no choice but to mobilise all available resources at their disposal to ensure a complete shutdown of the OMLS 86 & 88 field operations until the matter is resolved to the satisfaction of the host communities.” This emphasizes the seriousness of the situation.
