Communities issue 14-day ultimatum to shut down oil production

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, threatening to shut down operations at Oil Mining Leases 86 and 88 if their grievances over security contracts are not addressed.

The ultimatum, conveyed in a letter dated March 28, 2025, obtained by our correspondent on Wednesday, 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 communities said the 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 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.”

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.

It noted that 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 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, 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 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.

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 will take all necessary steps to shut down oil production at OMLs 86 and 88.

“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.

“It is imperative that NEPL acknowledges the seriousness of this matter and acts. Promptly to address these concerns. Neglect, refusal, or evasion of these demands will not only jeopardise the existing peace but also undermine the trust and goodwill that have sustained operations in the KEFFES region.”

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.

Attempts to get a response from the NNPCL spokesperson, Femi Soneye, on the issue were unsuccessful, as he didn’t respond to enquiries.