Tension as Niger Delta 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 its Oil Mining Leases (OMLs) 86 and 88 if their grievances over security contracts are not addressed.

The ultimatum, conveyed in a letter dated March 28, 2025, was signed by key representatives from the affected communities, including Chief Christopher Tuduo (Ezetu 1), Dr. Amakiri Ngozi (Fishtown), and eight others.

The dispute centers 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.

The eight aggrieved 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.

The letter showed that one of the vessels has now been awarded to a contractor unknown to the host communities, a move the aggrieved host communities view as a violation of long-standing agreements.

Accordingly, OMLs 86 and 88 were previously operated by Chevron Nigeria Limited (CNL) before being divested to NNPCL.

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.

“If our demands are not met within 14 days, we will take all necessary steps to shut down oil production at OMLs 86 and 88,” the statement reads in part.

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.

The development comes amid the Nigerian government's renewed quest to ramp up crude oil production.

President Bola Ahmed Tinubu's administration targets raising oil production to two million barrels daily by 2027 and three million daily by 2030.

In a related development, President Bola Ahmed Tinubu on Wednesday announced the and the firm's board.