Delta OML 42 Host Communities Petition NEPL Over Alleged FTO Breaches
By Rejoice Egbaseimokumor
Host communities in Delta State have formally notified the Managing Director and Chief Executive Officer of NNPC E&P Limited (NEPL) of their decision to reject the proposed 2026 Freedom to Operate (FTO) Agreement with Jones Creek Hydrocarbon Limited, citing what they described as persistent violations of host community rights and repeated breaches of previously executed agreements.
The communities, Okerenkoko Federated Community, Akpata Gbegbe Community and Ekpemu Community, all within the Jones Creek Field of OML 42, made their position known through their solicitors, Dr. I. J. Akpolu, Esq., in a petition dated June 23, 2026, addressed to the Managing Director of NEPL.
According to the petition, the communities alleged that despite signing FTO Agreements with Jones Creek Hydrocarbon Limited in 2024 and 2025, the company failed to comply with key provisions designed to guarantee host community participation and benefits.
The petition stated that the agreements required Jones Creek Hydrocarbon Limited to allow the host communities to nominate all unskilled workers and 40 percent of skilled workers employed on its operations. It also provided for community participation in contracts, subcontracts and services, including security, supplies, repairs and the integration of qualified indigenous contractors.
However, the communities alleged that these provisions were consistently ignored, accusing the company of awarding contracts without consulting community leadership, sidelining qualified indigenous contractors and delaying payments for completed jobs. They further claimed that when payments were eventually made, they were often reduced without explanation, resulting in financial losses for affected contractors.
The petition described the company’s actions as a gross violation of extant laws governing host community rights in the Nigerian oil and gas industry and a breach of the terms contained in the 2024 and 2025 FTO Agreements.
As a result, the three communities announced that they would no longer execute the 2026 FTO Agreement or any subsequent agreement with Jones Creek Hydrocarbon Limited.
Instead, they urged NEPL, as the operator representing the OML 42 Joint Venture partners, to engage directly with the host communities and ensure that all rights, benefits and obligations due to them are administered without the involvement of Jones Creek Hydrocarbon Limited.
The communities maintained that their decision followed years of alleged neglect and disregard for agreements freely entered into by both parties, insisting that they would not reverse their position unless their concerns are addressed.
At the time of filing this report, Jones Creek Hydrocarbon Limited had not publicly responded to the allegations contained in the petition.
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