Oil production threatened in Nigeria as communities issue 14-day ultimatum to shut down production

• As big communities successful Bayelsa State's coastal portion woody with a caller issue, Nigeria's lipid production
• The communities person issued a 14-day ultimatum to NNPC Exploration & Production Limited
• According to communities, the enactment erodes spot and collaboration for peaceful operations

Legit.ng writer Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Nigeria's lipid accumulation is facing a caller situation arsenic big communities successful the coastal portion of Bayelsa State person threatened to unopen down operations astatine Oil Mining Leases 86 and 88 if their complaints astir information contracts are not resolved.

The communities threatened to instrumentality each indispensable measures to halt lipid accumulation if their demands were not fulfilled wrong 14 days. Photo Credit: Contributor
Source: Getty Images

The communities person fixed NNPC Exploration & Production Limited a 14-day ultimatum.

Nigeria's oil production is facing a caller situation arsenic big communities successful the coastal portion of Bayelsa State person threatened to unopen down operations astatine Oil Mining Leases 86 and 88 if their complaints astir information contracts are not resolved.

This was communicated successful a missive dated March 28, 2025 and signed by cardinal representatives from the affected communities, Ezetu 1, Fishtown, Ezetu 2, Ekeni, Koluama 2, Koluama 1, Ezetu 2, Foropa, and Sangana.

What the assemblage perceives

According to the communities, the determination not lone violates the agreements that person been successful spot but besides erodes the assurance and collaboration that person allowed for peaceful operations successful the fields.

The missive read,

“We constitute to formally code the caller solution by the absorption of Pennington Production Limited (a subsidiary of NNPC and operators of OMLS 86/88) concerning the termination and demobilisation of Multiplan Nigeria Limited and the grant of 3 assemblage work information vessels contracts astatine OMLS 86 and 88 operational fields.“KEFFES Host Communities deems this enactment unacceptable and demands contiguous redress to debar immoderate disruption to the longstanding bid and stableness successful the KEFFES region.”

Cause of dispute

The quality centres astir NEPL’s determination to terminate the declaration of Multiplan Nigeria Limited, a community-nominated information contractor, and trim the fig of community-owned information vessels from 3 to two.

According to the report, 1 of the ships has present been fixed to a contractor that the big towns are unaware of, which they judge violates long-standing agreements.

Prior to being sold to NNPCL, OMLs 86 and 88 were tally by Chevron Nigeria Limited.

As portion of an statement Chevron introduced successful 2007 to sphere stableness and support lipid infrastructure, the 8 big communities—Sangana and Fish Town successful Brass Local Government Area, arsenic good arsenic Koluama 1, Koluama 2, Foropa, Ekeni, Ezetu 1, and Ezetu 2 successful Southern Ijaw Local Government Area—have agelong depended connected these information contracts.e.

The communities reminded NEPL successful their missive that it had committed to inheriting each existent contracts and liabilities, including the information vas arrangements, erstwhile it took implicit operations successful 2021.

They contend that since the boats beryllium to the community, immoderate absorption changes ought to person been approved successful advance.

Representing the impacted communities, the KEFFES Host Communities Development Trust has called for the 3 information vas contracts to beryllium reinstated immediately, the afloat outgo of 2024 invoices that are inactive pending, and an urgent gathering with NEPL's absorption to settee the substance wrong 7 days.

“The 3 information vessels correspond long-standing assemblage work contracts initiated successful 2007 which had been maintained done 2020 under Chevron Nigeria Limited. These contracts person continued uninterrupted since the divestment of the fields to NEPL successful 2021. Be reminded that during the introductory gathering betwixt CNL, NEPL and the KEFFES big communities, NEPL agreed to judge each liabilities and assets from CNL arsenic they look successful the agreements betwixt CNL and the KEFFES big communities, which includes these information vessels contracts.

The communities threatened to instrumentality each indispensable measures to halt lipid accumulation if their demands were not fulfilled wrong 14 days. Photo Credit: FG
Source: Getty Images

The missive further read,

“Any caller oregon renewed contracts signed with Multiplan Nigeria Limited oregon immoderate different contractor indispensable stay unexecuted to forestall the breakdown of bid and stableness successful the operational fields.“All 3 information vas contracts indispensable beryllium reinstated arsenic assemblage work contracts without hold to sphere determination bid and harmony.”

The communities warned that if their demands are not met wrong 14 days, they they volition instrumentality each indispensable steps to unopen down lipid accumulation astatine OMLs 86 and 88.

FG speaks connected withdrawing licenses of dormant lipid blocks

Legit.ng reported that Senator Heineken Lokpobiri, the State Minister of Petroleum Resources (Oil), threatened to instrumentality lipid blocks away from owners who haven't developed them.

This comes arsenic the Federal Government of Nigeria has urged overseas lipid companies doing concern successful the state to summation their concern successful the lipid and state industry, highlighting the information that the existent medication has offered each the incentives required to warrant creaseless and palmy operations.

In keeping with the propulsion to summation lipid production, Lokpobiri stated that the authorities volition commencement putting the Petroleum Industry Act's "drill oregon drop" provisions into effect successful 2025, with the Federal Government aiming to nutrient 2.06 cardinal barrels per day.

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Source: Legit.ng