House of Reps blocks oil companies’ divestment in Niger Delta over compliance issues

The House of Representatives has directed the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Minister of State for Petroleum to withhold consent for international oil companies (IOCs) involved in the divestment of assets in the Niger Delta region until they comply with the Petroleum Industry Act (PIA) and NUPRC decommissioning guidelines.

The lawmakers instructed its Committees on Petroleum Resources (Midstream), Host Communities, Gas Resources, Petroleum Resources (Downstream), and Petroleum Resources (Upstream) to investigate compliance with the decommissioning and abandonment guidelines of the NUPRC, as enshrined in the PIA.

These resolutions followed the adoption of a motion sponsored by Hon. Ikenga Imo Ugochinyere during Wednesday’s plenary.

The motion, titled “Need to Ensure International Oil Companies Involved in the Divestment of Assets in Niger Delta Region of Nigeria Comply with the Decommissioning, Abandonment Regulations and Guidelines of the NUPRC as Enshrined in the Petroleum Industry Act (PIA),” highlighted the National Assembly’s role in ensuring peace, order, and good governance, as stipulated in Section 4(2) of the Constitution.

Ugochinyere noted that Sections 88(1) and (2) of the Constitution empower the National Assembly to investigate the activities of any authority executing laws made by the Assembly. He emphasised the importance of adhering to Section 232 of the Petroleum Industry Act 2021, which mandates that the decommissioning and abandonment of petroleum operations be conducted following good international petroleum industry practices and guidelines issued by the NUPRC.

“Section 232(1)(b) of the Petroleum Industry Act 2021 authorises the NUPRC to issue decommissioning and abandonment regulations, which were established in 2023,” Ugochinyere stated. He commended the NUPRC and its Chief Executive Officer, Engr. Gbenga Komolafe, FNSE, for their visionary leadership in aligning these guidelines with global best practices.

He raised concerns about the environmental degradation in the Niger Delta caused by IOC activities, stressing the need for strict compliance with decommissioning and abandonment guidelines to prevent further harm to host communities. Ugochinyere urged the Minister of Petroleum Resources and the NUPRC Chief Executive Officer to refrain from granting consent for IOC divestments until full compliance with the PIA and NUPRC guidelines is ensured.

The House adopted the motion and mandated the committees to report back within four weeks for further legislative action.