Tension In Energy Sector: Stakeholders Reject New Oil Decommissioning Plan

Stakeholders in Nigeria’s oil and gas industry have pushed back strongly against a legislative proposal to establish a new agency solely tasked with the decommissioning and abandonment of oil production facilities. They argue the move is unnecessary, duplicative, and could complicate existing regulatory structures.

The opposition emerged during a consultative session with the House of Representatives Committee on Petroleum Resources (Upstream), held on Thursday.

Present at the meeting were key players from regulatory bodies such as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Ministry of Petroleum Resources, Ministry of Environment, National Oil Spill Detection and Response Agency (NOSDRA), and the National Environmental Standards and Regulations Enforcement Agency (NESREA).

Doguwa Defends Bill as Necessary Safeguard

Despite the pushback, Committee Chairman Alhassan Ado Doguwa defended the National Commission for the Decommissioning of Oil and Gas Infrastructure (NC-DOGI) Bill. He described it as a visionary legislative effort meant to align Nigeria with global best practices for decommissioning while ensuring the protection of host communities and the environment.

“This bill is more than just another legislative proposal; it’s a leadership initiative,” Doguwa said. “It aims to strengthen accountability in the sector and prevent the environmental damage caused by poorly managed facility abandonment.”

NUPRC: Existing Laws Already Cover Decommissioning

However, regulators and industry experts disagreed, warning that the proposed agency could lead to bureaucratic delays and regulatory overlap. Mark Emmanuel, Director of Production and Development at NUPRC, argued that the Petroleum Industry Act (PIA) already provides a comprehensive legal structure for decommissioning.

“Sections 232 and 3 of the PIA clearly define the obligations of licensees to plan, fund, and execute decommissioning at the end of a field’s life,” Emmanuel noted. “The decommissioning funds are managed by the operating companies under our oversight—they are not government revenue.”

He stressed that most of Nigeria’s oil fields are still active, making a standalone decommissioning agency premature. “Unlike the North Sea, Nigeria is in an expansion phase, not winding down,” he said.

Environment Ministry and Others Echo Concern

Rofikat Odetoro, Director of Environmental Assessment at the Ministry of Environment, echoed Emmanuel’s position. She pointed out that existing environmental regulations and Impact Assessment frameworks already address decommissioning adequately.

“We don’t need new institutions. We need stronger funding and enforcement of the ones we have,” she stated.

Other stakeholders echoed this sentiment, warning that creating overlapping agencies could breed inefficiency and dilute accountability. Instead, they called for the harmonization of roles among NOSDRA, NESREA, and NUPRC.

“The PIA was enacted to resolve these issues. Let’s give it time to work,” one participant was quoted by Daily Trust as saying.

As concerns deepen within the sector, the future of the NC-DOGI Bill remains uncertain, with the House Committee expected to continue consultations in the coming weeks.