NUPRC Opposes Creation Of Agency To Oversee Dismantling Of Oil Facilities

The Nigerian Upstream Petroleum Regulatory Commission, NUPRC, has opposed a new bill that seeks to create an agency to oversee the dismantling of oil and gas facilities, saying current regulations already cover the process.

In a submission to the House of Representatives Committee on Petroleum Resources (Upstream), A Director in NUPRC
EMMANUEL MACJAJA
said the proposed National Commission for Decommissioning of Oil and Gas Installations (NC-DOGI) Bill, 2024, would duplicate existing responsibilities and create regulatory confusion.

The commission said the Petroleum Industry Act (PIA) 2021 already provides a “comprehensive and globally benchmarked” framework for managing the decommissioning and abandonment of oil and gas facilities.

It explained that under the PIA, oversight of decommissioning is shared between NUPRC and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), both of which are equipped to manage late-life oil assets.

NUPRC warned that forming a new body would increase bureaucracy, strain public finances, and discourage investment in the oil and gas sector.

The commission also clarified that decommissioning funds established under the PIA are already held in escrow accounts to ensure transparency and accountability.

“There is no global precedent for a standalone decommissioning commission, citing examples from Norway, the United States, and the United Kingdom, where existing petroleum regulators oversee the entire lifecycle of oil and gas operations, he said

The director urged lawmakers to retain decommissioning oversight within the existing regulatory framework, saying that doing so would promote efficiency, prevent fragmentation, and align with Nigeria’s ease-of-doing-business reforms.

Oduyemi Odumade, Edited By Grace Namiji