Oil crisis looms as Bayelsa host communities threatens shutdown

Faith Alofe
2 Min Read

Nigeria’s oil production could face fresh disruptions as host communities in Bayelsa State have issued a 14-day ultimatum to NNPC Exploration & Production Limited, demanding a reversal of changes to security vessel contracts at oil fields OMLs 86 and 88.

The KEFFES host communities, in a letter dated March 28, 2025, warned that failure to reinstate the previous security arrangements would result in a complete shutdown of oil operations in the region.

The conflict arose after Pennington Production Limited, a subsidiary of the Nigerian National Petroleum Company Limited and operator of OMLs 86 and 88, terminated the contract of Multiplan Nigeria Limited, a security contractor nominated by the host communities.

The number of community security vessels was also reduced from three to two, with one contract awarded to an external firm that the communities claim was imposed without their consent.

OMLs 86 and 88, formerly operated by Chevron Nigeria Limited, were divested to NNPCL in 2021.

The communities argue that NEPL had agreed to inherit all existing contracts and liabilities, including security agreements.

According to the host communities, Chevron originally provided the security vessels in 2007 to address unrest in the area, and any modification to these agreements should have community approval.

Signed by key community representatives, including Christopher Tuduo (Ezetu 1), Dr. Amakiri Ngozi (Fishtown), and Uroh Kiani (Sangana), the letter outlined three core demands, “Reinstatement of all three security vessel contracts, Full payment of outstanding invoices from 2024, An urgent meeting with NEPL’s management within seven days.”

Failure to meet these demands within 14 days, the communities warned, would lead to an immediate shutdown of oil production at the affected fields.

Nigeria’s crude oil production has already been under pressure, dropping to 1.4 million barrels per day (bpd) in February, down from 1.737 million bpd in January.

Any disruption in Bayelsa could further weaken the country’s oil output at a time when the government is struggling to meet production targets.

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