Stakeholders Divided Over Plan For New Oil Decommissioning Body

By Gloria Ikibah

Industry players in Nigeria’s oil and gas sector have expressed reservations about a proposal to create a new regulatory body focused solely on the decommissioning and abandonment of oil production sites.

The stakeholders maintain that the current agencies are sufficiently capable of handling these responsibilities.

At an interactive session of lawmakers and key players in the sector, representatives from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and other stakeholders emphasised that establishing another commission would lead to overlapping duties and increased bureaucratic complexity.

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The session, led by Chairman House Committee on Petroleum Resources Upstream, Rep. Alhassan Ado Doguwa, included participants from the Ministry of Petroleum Resources (MPR), Ministry of Environment (FME), NUPRC, National Oil Spill Detection and Response Agency (NOSDRA), and the National Environmental Standards and Regulations Enforcement Agency (NESREA).

In his opening remarks, Doguwa underscored the significance of the proposed commission, describing the NC-DOGI Bill as a “landmark legislative proposal aimed at establishing a dedicated commission to coordinate all decommissioning efforts in Nigeria’s oil and gas sector.”

“This Bill is not just another legislative initiative—it is a leadership Bill.

“It is designed to ensure Nigeria meets globally accepted standards of decommissioning, while protecting host communities and the environment from the harmful effects of improper facility abandonment,” he said.

Despite the Chairman’s optimistic framing, the proposal faced strong opposition from industry regulators and stakeholders, who insisted that Nigeria already has an effective framework under the Petroleum Industry Act (PIA) and other regulatory instruments to handle decommissioning and abandonment.

The Director of Production and Development of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mark Emmanuel argued that the obligations for decommissioning are embedded in current licensing frameworks and are strictly enforced under the supervision of the commission.

“The PIA under Sections 232 and 3 already makes elaborate arrangements for decommissioning and abandonment

“It is the legal obligation of the licensee or lessee to fund, plan, and carry out decommissioning at the end of an oil field’s life cycle. The funds set aside for this purpose are not government revenue but are controlled by the operators under the NUPRC’s supervision.”

He further cautioned that setting up a new agency would be premature and wasteful, noting that most oil fields in Nigeria are still productive and far from their decommissioning phase.

“If you create a standalone commission now, it will be idle for the foreseeable future. Unlike the North Sea, where decommissioning is active, Nigeria is still in a growth phase. More investments are being made to expand production, not shut it down,” he added.

The Director, environmental assessment department, Ministry of Environment Mrs Rofikat Odetoro, echoed the sentiments, warning against creating redundant structures.

“This is already embedded in the Environmental Impact Assessments (EIA) and current regulations. Instead of creating a new agency, let’s empower NOSDRA and the relevant existing institutions,” she said.

During the discussions, attention was drawn to the gap between official policies and the actual situation on the ground—especially in the Niger Delta, where local communities continue to bear the impact of pollution and damage caused by neglected oil facilities.

Rep. Doguwa wrapped up the session by stressing the committee’s dedication to making decisions that are both inclusive and well-informed.

“We will collect all documentary submissions and review every perspective. If these agencies do not return for further dialogue, we will go to the field and meet them there. Your guidance is crucial as we shape this legislative framework,” he noted.

Stakeholders Divided Over Plan For New Oil Decommissioning Body, Point To Existing System

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