This research work sets out to examine the factors responsible for the conflictual relationship between oil companies and their host communities. In doing so, the research sourced data’s from both primary and secondary sources: while the frustration-aggression theory was adopted as a framework for theoretical analysis..The main objective of this study was to ascertain the possible causes of conflict in oil producing communities. Thus, the research raised the fundamental question; what are the reasons for the conflictual relationship between oil communities and oil producing communities?. The research concludes based on findings that the acrimony between the host communities and the oil companies is as a result of long term negligence by the oil companies, and their inability to fulfill the expectations of the host communities which has resulted into long term frustration and manifested in the form of aggression. To this end, and based on the findings, the research made recommendations which includes; government should formulate and implement realistic policies that are aimed at protecting the environment and developing the oil producing areas.

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