August 5, 2025
Business

Bayelsa Oil Communities Threaten Shutdown Over Security Contract Dispute With NNPC Subsidiary

A potentially disruptive crisis is unfolding in Nigeria’s oil-rich Bayelsa State as host communities have issued a stern 14-day ultimatum to NNPC Exploration & Production Limited (NEPL), threatening to completely halt oil production at Oil Mining Leases (OMLs) 86 and 88 over security contract controversies.

The communities, operating under the KEFFES Host Communities Development Trust, are protesting NEPL’s decision to terminate the contract previously awarded to Multiplan Nigeria Limited, a security contractor specifically nominated by the communities. They have also expressed outrage over the reduction of community-owned security vessels from three to two, with allegations that one of the contracts was secretly awarded to an unknown contractor without any consultation with community stakeholders.

In a strongly-worded letter dated March 28, 2025, obtained exclusively by media representatives from the affected communities – including Sangana and Fish Town in Brass Local Government Area, alongside Koluama 1, Koluama 2, Foropa, Ekeni, Ezetu 1, and Ezetu 2 in Southern Ijaw Local Government Area – have demanded immediate reinstatement of the terminated security contract.

The letter, bearing signatures from prominent community leaders including Chief Christopher Tuduo of Ezetu 1, Dr. Amakiri Ngozi representing Fish Town, and Chief Thankgod Bunafigha from Koluama 1, described NEPL’s actions as a fundamental breach of trust and longstanding agreements that have been instrumental in maintaining peace throughout the volatile region.

“We find the unilateral decision to terminate and demobilize Multiplan Nigeria Limited, as well as reduce the number of community security vessels, completely unacceptable and potentially destabilizing. The communities demand an immediate reversal of these decisions to prevent certain disruption of oil operations in OMLs 86 and 88,” the letter stated in unambiguous terms.

The community leaders pointedly reminded NEPL that when it acquired the oil assets from Chevron Nigeria Limited in 2021, it had explicitly agreed to honor all existing liabilities and contracts, including established security arrangements. They emphasized that the security vessels are community-owned assets that were introduced by Chevron in 2007 as a critical component of broader efforts to safeguard oil infrastructure and maintain stability in the historically volatile region.
The host communities have issued three specific demands:

Immediate reinstatement of all three security vessel contracts, Full settlement of outstanding invoices dating back to 2024.
An urgent meeting with NEPL management within seven days to comprehensively resolve the issue

Their ultimatum comes with a clear warning that failure to meet these demands within 14 days will result in coordinated action to completely shut down oil production at the affected OMLs.

“Failure to resolve this matter expeditiously will leave us with absolutely no choice but to mobilize our people to completely halt operations in the oil fields. The breakdown of trust and failure to honor agreements could significantly destabilize the region, and we will not allow that to happen under any circumstances,” the letter warned.

This looming crisis raises serious concerns about potential disruptions to Nigeria’s oil production and revenue streams, as the affected oil blocks represent significant assets in the country’s offshore sector. The standoff further highlights the persistent tensions between host communities and oil operators, particularly as multinational companies continue divesting from onshore and shallow-water operations, leaving local and state-owned operators to navigate increasingly complex community relations.