Home Economy Bayelsa Host Communities Threaten Shutdown Over Security Vessel Contract Dispute with NNPC Subsidiary

Bayelsa Host Communities Threaten Shutdown Over Security Vessel Contract Dispute with NNPC Subsidiary

by Radarr Africa
Bayelsa Host Communities Threaten Shutdown Over Security

Tension is rising again in Bayelsa State’s coastal oil-producing areas, as eight host communities have issued a seven-day ultimatum to NNPC Exploration and Production Limited (NEPL) over disputes surrounding the award of security vessel contracts. The communities, which include Koluama 1 and 2, Ezetu 1 and 2, Foropa, Fish Town, Ekeni, and Sangana, are threatening to shut down operations at Oil Mining Leases (OMLs) 86 and 88 if their concerns are not addressed.

The renewed hostilities were triggered by allegations that NEPL and its contractors have sidelined local stakeholders in awarding security contracts. These contracts, according to the communities, are traditionally seen as a form of community engagement that helps maintain peace and stability in the oil-rich but restive region.

In a strongly worded letter to NEPL, the Chairman of the KEFFES Host Communities Development Trust (HCDT), Chief Tuduo Christopher, accused the company and its subcontractors of displaying a nonchalant attitude towards the concerns of the host communities. Chief Christopher said this attitude could spark civil unrest and disrupt oil operations in the area.

The KEFFES Trust specifically pointed fingers at Pennington Production Limited — a subsidiary of NEPL operating in the area — along with its contractors, Multiplan Nigeria Limited and EDEMX. The Trust claimed these firms failed to engage the host communities before taking over the security contracts.

The host communities further expressed their frustration over the refusal of the new contractors to attend dialogue meetings organised between April and May 2025. According to the Trust, repeated invitations were ignored. Also, several local contractors are reportedly yet to be paid for services rendered, with some outstanding payments dating back to 2023.

The letter stressed the importance of the security vessels, describing them as “monuments of peace” that serve not just a security role but also as economic lifelines. The contracts, it said, provide livelihoods for more than 250 direct and 400 indirect beneficiaries across the eight communities.

Citing Section 257(2) of the Petroleum Industry Act (PIA) 2021, the Trust warned that continued neglect of local interests could lead to sabotage, vandalism, or full-scale unrest. The Trust held NEPL accountable for any potential breakdown of peace, saying the letter serves as an official notice of the company’s failure to act in good time.

The communities gave NEPL seven days to organise a meeting between the KEFFES Trust’s Board of Trustees and the new contractors. Failure to do so, they said, would result in demands for the immediate removal of all contractors and security vessels from the oil fields within 14 days, or face a complete shutdown of oil operations at OMLs 86 and 88.

The letter was also copied to top government authorities, including the Office of the National Security Adviser, the Nigerian Upstream Petroleum Regulatory Commission, the Minister of State for Petroleum Resources (Oil), and NEPL’s Executive Director of Business Services.

“We are indeed exhausted of the back-and-forth movement of things when it comes to the KEFFES communities’ security vessels contract,” the letter stated. “We urge you to act decisively and responsibly within the stipulated timeframe to ensure the continuity of peace and prosperity in the KEFFES Host Communities. A stitch in time saves nine,” it concluded.

Earlier in April, a similar standoff between the communities and NEPL, but the issues remain unresolved. Bayelsa is one of Nigeria’s major oil-producing states and contributes significantly to the country’s crude oil output. The region, however, has long been plagued by tensions between host communities and oil companies over employment, environmental degradation, and lack of meaningful development.

This latest faceoff also reflects the wider challenge faced by Nigerian oil operators — especially as international oil companies continue to divest from onshore and shallow water assets, leaving indigenous and government-run firms to manage complicated relationships with local communities.

Efforts to get a response from the NNPC Limited spokesperson, Femi Soneye, were unsuccessful as he did not respond to enquiries.

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