NUPRC Opposes Establishment of Oil, Gas Decommissioning Commission
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has opposed the National Commission for Decommissioning of Oil and Gas Installations (NC-DOGI) establishment Bill (2024).
The position of NUPRC was contained in a memorandum submitted at a public hearing organised by the House Committee on Petroleum Resources (Upstream) in Abuja.
Earlier, the Chairman, House Committee on Petroleum Resources (Upstream), Rep. Ado Doguwa (APC-Kano), said that over the years, Nigeria’s petroleum industry had continued to face challenges in the decommissioning and abandonment of oil and gas facilities.
According to him, these challenges have environmental, economic and social impacts, particularly on host communities.
“This, therefore, calls for a closer look at whether the existing regulatory frameworks are sufficient or need to be strengthened and whether establishing a dedicated body, such as the proposed commission, would better serve national interests.
“It is, however, important to note that the Petroleum Industry Act (PIA) already provides for decommissioning and abandonment under Sections 232 and 233, assigning specific responsibilities to the NUPRC and MDPRA and also establishing a fund to ensure these activities are properly planned and financed in line with regulations,” he said.
The chairman said that the NC-DOGI bill which was sponsored by the leadership of the house is a significant legislative proposal as it sought to address matters that affected human and environmental welfare.
He said it reflected parliament’s commitment to ensuring the growth of the oil and gas sectors as well as ensuring environmental responsibility and sustainable community development.
Doguwa explained that the public hearing was part of the legislative process of the National Assembly that ensured transparency, participation and inclusiveness in lawmaking.
He said that the purpose for engagement was to provide a formal platform for stakeholders to express their views, make observations and offer recommendations that will ensure a fair and informed decision by parliament.
In the memorandum the NUPRC had opposed the proposed establishment of the commission, saying it is unnecessary, duplicative and contrary to international best practices and is likely to discourage investments in the oil and gas industry.
The commission maintained that the PIA already empowers NUPRC and Nigerian Midstream and Downstream Petroleum Regulatory Authority (MDPRA) to effectively manage decommissioning in their respective sectors of the oil and gas industry and these responsibilities are currently being discharged competently.
“Section 232 of the Petroleum Industry Act (PIA 2021) mandates every licensee/lessee to submit a Decommissioning and Abandonment Plan aligned with the approver Feld Development Plan and the Commission already enforces this requirement through an established review workflow.
“The House Committee on Petroleum Resources (Upstream) is respectfully urged to maintain decommissioning and abandonment oversight within the existing petroleum regulatory framework (NUPRC and NMDPRA).
“This approach will ensure technical coherence, economic efficiency and alignment with both PlA 2021 and global standards, thereby safeguarding Nigeria’s interests in the oil and gas sector and promoting the Federal Government’s ease of doing business initiatives,” it said. #NUPRC Opposes Establishment of Oil, Gas Decommissioning Commission#
