Ifeanyi Ibeh
On Wednesday, the House of Representatives commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), led by its Chief Executive Officer, Gbenga Komolafe, for establishing comprehensive guidelines for decommissioning and abandonment procedures in the oil sector.
The commendation was followed by a resolution to investigate the ongoing divestment of assets by international oil companies (IOCs) operating in the Niger Delta region. This investigation aims to ascertain the level of compliance with the decommissioning and abandonment guidelines set by the NUPRC as mandated by the Petroleum Industry Act (PIA) of 2021.
The resolution was adopted following a motion sponsored by Hon. Ikenga Ugochinyere, Chairman of the House Committee on Petroleum Resources (Downstream). Ugochinyere highlighted the necessity for IOCs involved in asset divestment in the Niger Delta to adhere strictly to the NUPRC’s decommissioning and abandonment regulations as enshrined in the PIA.
Ugochinyere emphasized, “The House notes that the National Assembly is tasked with making laws for the peace, order, and good governance of the Federation or any part thereof as stipulated in Section 4(2) of the Constitution of the Federal Republic of Nigeria, 1999 (as amended).”
He also noted that Sections 88(1) and (2) of the Constitution empower the National Assembly to investigate the activities of any authority executing or administering laws made by the National Assembly. He further explained that Section 232 of the PIA 2021 mandates that the decommissioning and abandonment of petroleum wells, installations, structures, utilities, plants, and pipelines must follow international petroleum industry practices and guidelines issued by the Commission.
“The House is cognizant that in exercising the powers conferred on it by Section 232(1)(b) of the Petroleum Industry Act, 2021, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) issued the Nigerian Upstream Decommissioning and Abandonment Regulations, 2023. These guidelines outline specific procedures for offshore decommissioning operations,” Ugochinyere added.
Ugochinyere expressed concern that many IOCs are divesting their assets in Nigeria without complying with the NUPRC’s decommissioning and abandonment guidelines. This non-compliance has led to significant environmental degradation in the Niger Delta, damaging farmlands and water bodies and leaving local ecosystems severely exploited.
“The House is worried that if consent is granted for the divestment of the IOCs’ assets without ensuring their compliance with the guidelines and regulations, the host communities will suffer irredeemably. Furthermore, the companies taking over the assets will not be able to remedy the environmental degradation,” he stated.
The House has mandated its Committees on Petroleum Resources (Midstream), Host Communities, Gas Resources, Petroleum Resources (Downstream), and Petroleum Resources (Upstream) to investigate and report back within four weeks for further legislative action.
