Communities Give 14-Day Ultimatum to Shut Down Oil Production in Nigeria, Names Affected Regions
- As host communities in Bayelsa State's coastal region deal with a new issue, Nigeria's oil production may be affected
- The communities have issued a 14-day ultimatum to NNPC Exploration & Production Limited
- According to communities, the action erodes trust and collaboration for peaceful operations
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
Nigeria's oil production is facing a new crisis as host communities in the coastal region of Bayelsa State have threatened to shut down operations at Oil Mining Leases 86 and 88 if their complaints about security contracts are not resolved.
Source: Getty Images
The communities have given NNPC Exploration & Production Limited a 14-day ultimatum.
Nigeria's oil production is facing a new crisis as host communities in the coastal region of Bayelsa State have threatened to shut down operations at Oil Mining Leases 86 and 88 if their complaints about security contracts are not resolved.
This was communicated in a letter dated March 28, 2025 and signed by key representatives from the affected communities, Ezetu 1, Fishtown, Ezetu 2, Ekeni, Koluama 2, Koluama 1, Ezetu 2, Foropa, and Sangana.
What the community perceives
According to the communities, the move not only violates the agreements that have been in place but also erodes the confidence and collaboration that have allowed for peaceful operations in the fields.
The letter read,
“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) concerning the termination and demobilisation of Multiplan Nigeria Limited and the award of 3 community service security vessels contracts at OMLS 86 and 88 operational fields.
“KEFFES Host Communities deems this action unacceptable and demands immediate redress to avoid any disruption to the longstanding peace and stability in the KEFFES region.”
Cause of dispute
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.
According to the report, one of the ships has now been given to a contractor that the host towns are unaware of, which they believe violates long-standing agreements.
Prior to being sold to NNPCL, OMLs 86 and 88 were run by Chevron Nigeria Limited.
As part of an agreement Chevron introduced in 2007 to preserve stability and protect oil infrastructure, 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 depended on these security contracts.e.
The communities reminded NEPL in their letter that it had committed to inheriting all current contracts and liabilities, including the security vessel arrangements, when it took over operations in 2021.
They contend that since the boats belong to the community, any management changes ought to have been approved in advance.
Representing the impacted communities, the KEFFES Host Communities Development Trust has called for the three security vessel contracts to be reinstated immediately, the full payment of 2024 invoices that are still pending, and an urgent meeting with NEPL's management to settle the matter within seven days.
“The three security vessels represent long-standing community service contracts initiated in 2007 which had been maintained through 2020 under Chevron Nigeria Limited. 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.
Source: Getty Images
The letter further read,
“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.
“All three security vessel contracts must be reinstated as community service contracts without delay to preserve regional peace and harmony.”
The communities warned that if their demands are not met within 14 days, they they will take all necessary steps to shut down oil production at OMLs 86 and 88.
FG speaks on withdrawing licenses of dormant oil blocks
Legit.ng reported that Senator Heineken Lokpobiri, the State Minister of Petroleum Resources (Oil), threatened to take oil blocks away from owners who haven't developed them.
This comes as the Federal Government of Nigeria has urged foreign oil companies doing business in the country to increase their investment in the oil and gas industry, highlighting the fact that the current administration has offered all the incentives required to guarantee smooth and successful operations.
In keeping with the push to increase oil production, Lokpobiri stated that the government will start putting the Petroleum Industry Act's "drill or drop" provisions into effect in 2025, with the Federal Government aiming to produce 2.06 million barrels per day.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Legit.ng
