Niger Delta Communities Threaten Oil Production Shutdown

Niger Delta Communities Threaten Oil Production Shutdown

Host communities in the oil-rich KEFFES region of Bayelsa State have issued a 14-day ultimatum to the Nigerian National Petroleum Company (NNPC) Exploration & Production Limited (NEPL), demanding the reversal of a controversial decision regarding security vessel contracts at oil fields OMLs 86 and 88.

The communities warned that failure to address their concerns would result in a complete halt in oil production in the area. Such a shutdown could exacerbate Nigeria’s ongoing struggles with crude oil output, which has already seen a decline from 1.737 million barrels per day (bpd) in January to 1.4 million bpd in February.

Dispute Over Security Contracts

The conflict stems from Pennington Production Limited, an NNPC subsidiary and the operator of OMLs 86 and 88, terminating the contract of Multiplan Nigeria Limited, a security contractor chosen by the community. Additionally, the company reduced the number of community security vessels from three to two, awarding one of the remaining contracts to a firm unfamiliar to the host communities.

The oil fields, which were transferred from Chevron Nigeria Limited (CNL) to NNPC in 2021, fall within eight coastal communities in Bayelsa State. Local leaders argue that the recent contract changes violate long-standing agreements and threaten the region’s stability.

Chevron had initially deployed security vessels in 2007 to help address unrest and protect oil infrastructure. When NNPC took over the fields, it reportedly agreed to uphold existing liabilities and contracts, including the security vessel agreements.

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Community Leaders Demand Immediate Action

In a letter dated March 28, 2025, addressed to NEPL, the community leaders—including Chairman Christopher Tuduo (Ezetu 1), Dr. Amakiri Ngozi (Fishtown), Tuadei Alex C. (Ezetu 2), and several others—insisted that their security vessels are community assets. They emphasized that any modifications to the contract require their consent.

The letter stated:

“KHCDT is demanding the immediate reinstatement of all 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.”

Failure to meet these demands within 14 days, the communities warned, would lead to the mobilization of resources to shut down oil production at OMLs 86 and 88 until their concerns are addressed.

Implications for Nigeria’s Oil Sector

If the threatened shutdown materializes, it could further complicate Nigeria’s oil production, which remains a key revenue source for the country. The dispute highlights ongoing tensions between host communities and oil firms over contract terms, resource control, and security arrangements.

As the deadline approaches, all eyes will be on NEPL and the federal government to see how they respond to the growing unrest in the Niger Delta.

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