Reps Launch Probe Into Oil Sector Decommissioning Compliance

The House of Representatives has set up an ad hoc committee to investigate compliance with decommissioning and abandonment regulations in Nigeria’s petroleum industry.

Speaking at the
Inauguration in Abuja, the Speaker, Dr Abbas Tajudeen said the probe is aimed at enforcing the Petroleum Industry Act, particularly provisions on environmental protection, host community welfare and the lifecycle management of oil and gas assets.

He said the review has “wide-ranging implications for host communities, the environment and the credibility of regulatory institutions.”

The committee will scrutinize operators’ decommissioning plans, statutory compliance and the adequacy of financial provisions meant to prevent future liabilities.

On his part, the Chairman of the Committee, Bassey Ekpenyong summoned the Managing Directors of the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA.

This followed the failure of their representatives to provide essential documents requested by the committee.

The committee directed both Managing Directors to appear before it on Wednesday, noting that if they are unable to attend in person, they must formally delegate competent representatives with full authority to speak and submit required documents.

Ekpenyong described the assignment as a matter of national importance, stressing that abandoned or poorly decommissioned oil and gas facilities far beyond their design life pose serious risks, including environmental degradation, economic loss, community conflict, and safety hazards.

He emphasized that the PIA established clear obligations for responsible asset stewardship, lifecycle planning, decommissioning fund contribution, safe facility retirement, and environmental remediation.

He further disclosed that the committee would engage with NUPRC and NMDPRA as primary regulators, as well as operators, licensees, host communities, environmental and safety experts, civil society, academia, and financial specialists handling decommissioning funds.

Oduyemi Odumade, Edited By Grace Namiji