The coastal communities of Bayelsa State, Nigeria, are once again embroiled in a heated dispute with the Nigerian National Petroleum Company (NNPC) Exploration & Production Limited (NEPL) over the awarding of security vessel contracts for Oil Mining Leases (OMLs) 86 and 88. These contracts, traditionally viewed as community service initiatives and vital to local economies, are at the heart of a renewed standoff that threatens to disrupt oil production in the region. Eight communities, collectively represented by the KEFFES Host Communities Development Trust (HCDT), have issued a stern ultimatum to NEPL, demanding immediate action to resolve the contract dispute or face a complete shutdown of operations within the affected oil fields. This latest escalation underscores the deep-seated tensions between host communities and oil operators, particularly in the wake of divestments by international oil companies that leave local entities to grapple with complex community relations.
The core issue revolves around the alleged sidelining of local stakeholders in the awarding of security vessel contracts to new contractors, namely Multiplan Nigeria Limited and EDEMX, by Pennington Production Limited, a subsidiary operating the OMLs 86 and 88. The KEFFES HCDT accuses NEPL and its contractors of failing to engage or consult with the host communities before awarding these contracts, a breach of established practice and a disregard for the communities’ economic and social well-being. These contracts are not merely business arrangements; they represent a critical source of income and stability for over 650 individuals, both directly and indirectly employed through these operations. Furthermore, the communities perceive these vessels as symbols of peace and security in the region, adding another layer of significance to the dispute.
The KEFFES HCDT, in a strongly worded letter addressed to NEPL, articulated their grievances and warned of the potential consequences of the company’s “nonchalant attitude.” The letter detailed several unresolved issues, including the new contractors’ alleged refusal to attend meetings with community representatives and the delayed payment of local contractors, some of whom are owed payments stretching back to 2023. The HCDT emphasizes the critical role these contracts play in sustaining livelihoods and maintaining peace in the region. The letter explicitly cites Section 257(2) of the Petroleum Industry Act (PIA) 2021, highlighting the risk of vandalism, sabotage, and civil unrest should the dispute remain unresolved. This legal invocation underscores the seriousness of the situation and the potential legal ramifications for NEPL if operations are disrupted.
The KEFFES HCDT has issued a seven-day ultimatum to NEPL, demanding a meeting between the Trust’s Board of Trustees and the newly appointed contractors. Failure to comply with this demand will trigger a further escalation, with the communities demanding the evacuation of all contractors and vessels from OMLs 86 and 88 within 14 days. Should this second deadline also pass unmet, the communities have vowed to initiate a complete shutdown of all operations within the affected oil fields. The letter has been widely circulated to relevant government authorities, including the Office of the National Security Adviser, the Nigerian Upstream Petroleum Regulatory Commission, and the Minister of State for Petroleum Resources (Oil), signaling the communities’ intent to pursue all available avenues for redress.
This is not the first time such a dispute has arisen between NEPL and the KEFFES communities. Earlier this year, in April, a similar standoff was reported, further highlighting the persistent and unresolved nature of the underlying issues. The continuing tensions underscore the challenges faced by local operators in managing community relations, particularly in the context of the ongoing divestment of international oil companies from onshore and shallow water operations in Nigeria. The departure of these international players often leaves local companies to navigate complex local dynamics without the same level of experience or resources. This incident serves as a microcosm of the broader issues facing the Nigerian oil industry, highlighting the urgent need for effective communication and collaborative solutions to address community concerns and ensure the sustainable operation of oil and gas facilities.
The ongoing silence from the NNPCL spokesperson, despite repeated attempts to solicit a response, further complicates the situation and contributes to the escalating tension. This lack of communication fuels distrust and hinders the potential for a mediated resolution. The KEFFES communities, feeling ignored and marginalized, are left with little option but to escalate their actions in an attempt to be heard. As the deadline approaches, the potential for disruption to oil production in Bayelsa, a major oil-producing state, becomes increasingly real, posing significant economic and security risks. The situation requires urgent intervention from relevant authorities to facilitate dialogue and prevent further escalation of the conflict. A failure to address these issues proactively risks not only immediate disruptions to operations but also long-term damage to the relationship between oil companies and host communities, potentially jeopardizing the future of oil production in the region.
