• Petition NSA, minister over lingering dispute
Nigeria’s already fragile oil revenues, strained by underperformance, may face a fresh crisis as Niger Delta communities, yesterday, threatened to shut down key oil production facilities.
The KEFFES Host Communities Development Trust (HCDT), made up of eight oil-producing communities issued a seven-day notice to shut down production of NPC Exploration & Production Limited (NEPL), a subsidiary of Nigerian National Petroleum Company Limited (NNPC).
The communities, comprising Koluama 1 & 2, Ezetu 1 & 2, Foropa, Fish town, Ekeni and Sangana, demanded swift action over what they describe as the neglectful handling of security vessel contracts by Pennington Production Limited and its contractors.
Nigeria’s oil production, which averaged just 1.4 million barrels per day (bpd) in recent months, well below the national budget benchmark of 2.06 million bpd, has already cost the country dearly.
In a letter to NEPL’s Executive Director of Production and Asset Management, the Chairman of KEFFES HCDT, Chief Tuduo Christopher, listed deep-seated grievances tied to the reassignment of security vessel contracts for the OML 86 and 88 operational fields.
Christopher noted that despite multiple meetings and assurances between April and May with NEPL, the new contractors had shown little interest in meaningful engagement.
According to him, failure to meet the deadline would result in evacuation demands for all contractors and vessels from the OML 86 and 88 fields within 14 days, with the risk of a total operational shutdown.
Christopher also cited Section 257(2) of the Petroleum Industry Act, 2021, cautioning that the situation could spiral into vandalism, sabotage, or civil unrest, further jeopardising production.
“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 letter reads.
The communities have additionally raised concerns over outstanding invoice payments dating back to 2023, noting that the unpaid sums had placed immense strain on local contractors supporting over 250 direct and 400 indirect beneficiaries.
“The vessels are not merely assets, but are regarded as monuments of peace,” Christopher said.
Copies of the letter were sent to senior government officials, including the Minister of State for Petroleum (Oil), the National Security Adviser, and the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), urging NEPL to recognise the urgency and act decisively.
Spokesperson for NNPC, Femi Soneye, did not respond to requests by The Guardian on the issue at the time of filing this report.