Host communities in the Niger Delta region have threatened to halt Nigeria's crude oil production following an unresolved dispute with Nigerian National Petroleum Company Exploration & Production Limited (NEPL) and its partners.
Tuduo Christopher, chairman of KEFFES Host Communities Development Trust, issued the warning in a statement on Wednesday, expressing frustration over what he described as the "nonchalant attitude" of Pennington Production Limited and its security vessel contractors toward the host communities.
The communities' grievances center on NEPL's handling of security vessel contracts for the OML 86 and 88 operational fields. According to the statement, NEPL granted contracts traditionally considered "community service contracts" to external contractors without prior consultation or approval from the host communities.
"Please note that if this happens, this letter serves as official notice and may be used as evidence of your failure to resolve this issue amicably," the communities warned in their statement.
Seven-Day Ultimatum
The host communities have given NEPL a seven-day ultimatum to convene an urgent meeting between the trust's board of trustees and the new contractors. If this deadline is not met, they threaten to demand the evacuation of all contractors and vessels from the OML 86 and 88 operational fields within fourteen days—or face a complete shutdown of operations.
This development comes at a critical time for Nigeria's oil sector. The country is targeting production of 2.1 million barrels per day for 2025, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The NUPRC recently reported that Nigeria's crude oil output had increased to 1.486 million barrels per day, achieving 99 percent of the Organisation of the Petroleum Exporting Countries' (OPEC) target of 1.5 million barrels per day.
Any disruption to production in the Niger Delta region could significantly impact these targets and Nigeria's oil revenue, which remains a crucial component of the national economy.
Neither NEPL nor Pennington Production Limited had issued an official response to the ultimatum at the time of reporting.