BAYELSA, Nigeria – Communities in the KEFFES region of Bayelsa State have issued a 14-day ultimatum to NNPC Exploration & Production Limited (EPL) to reverse a contentious decision regarding security vessel contracts at oil fields OMLs 86 and 88. Failure to comply could result in a complete shutdown of oil operations, further complicating Nigeria's already struggling oil production.
The dispute centers on Pennington Production Limited, a subsidiary of NNPC, which recently terminated the contract of Multiplan Nigeria Limited, a community-nominated security contractor. The company also reduced the number of community security vessels from three to two, with one now awarded to an unknown contractor.
Host communities view this move as a breach of long-standing agreements and a threat to regional peace and stability. The security vessels were originally provided by Chevron Nigeria Limited in 2007 to address unrest and ensure security in the oil fields.
During its 2021 takeover of OMLs 86 and 88 from Chevron, NNPC agreed to inherit all existing liabilities and contracts, including the security vessel agreements. The communities insist that any changes to these contracts require their approval, as the vessels are considered community-owned assets.
In a letter dated March 28, 2025, the communities demanded 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.
Nigeria's crude oil production has been declining, reaching an average of 1.4 million barrels per day in February 2025, down from 1.737 million barrels per day in January. This potential shutdown could exacerbate the situation, impacting both the national economy and global oil markets.
The communities have vowed to mobilize all necessary resources to halt production at OMLs 86 and 88 if their demands are not met within the specified timeframe. This standoff highlights ongoing tensions between host communities and oil operators in the Niger Delta region.