NNPCL, NUPRC, Minister Oppose Bill to Create Oil & Gas Decommissioning Commission
By Naija Enquirer Staff
Key institutions in Nigeria’s oil and gas sector the Ministry of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian National Petroleum Company Limited (NNPCL) have rejected a proposed bill aiming to establish the National Commission for the Decommissioning of Oil and Gas Installations (NC-DOGI).
They cautioned that creating the new agency would duplicate existing regulatory functions, disrupt the Petroleum Industry Act (PIA) framework, and threaten investor confidence in the sector. Their positions were presented at a public hearing organised by the House of Representatives Committee on Petroleum Resources (Upstream) in Abuja.
Minister: New Body Unnecessary, Risks Investor Confidence
Minister of State for Petroleum Resources (Oil), Dr. Heineken Lokpobiri, argued that the proposed commission would not address any gaps currently unfilled by existing regulations and agencies.
“Creating a Commission for decommissioning and abandonment would not solve community-related issues. The Host Community Development Trust Fund (HCDT) already addresses these matters and has generated nearly N400 billion for community development,” Lokpobiri said.
He added that tampering with the PIA structure — which has helped restore investor confidence since 2021 — could reverse progress and send negative signals to global investors.
NUPRC: Bill Contradicts Global Practice, Threatens Regulatory Stability
Echoing the Minister’s concerns, NUPRC Chief Executive, Engr. Gbenga Komolafe, stressed that decommissioning responsibilities belong to the upstream regulator under international oil and gas standards.
“Decommissioning is part of field development planning. Creating a separate regulator breaks that structure and will jeopardise the objectives of the sector,” Komolafe stated.
He also reminded lawmakers that regulatory uncertainty between 2014 and 2021 led to a 75% drop in oil investment before the PIA stabilised the sector.
NNPCL: Activity Not Frequent Enough to Justify New Agency
Executive Vice-President, Upstream, NNPCL, Mr. Udobong Ntia, also opposed the bill, noting that decommissioning happens toward the end of field lifecycle — sometimes decades apart.
“What will such a commission be doing when NNPC has no decommissioning obligations until 2045?” Ntia asked. He warned that adding new bureaucracy would burden the sector rather than strengthen it.
Lawmakers Cite Environmental Concerns
The Chairman of the House Committee on Petroleum Resources (Upstream), Hon. Alhassan Ado Doguwa, said the bill aims to strengthen environmental protections in oil-producing regions, particularly the Niger Delta.
However, stakeholders maintained that the PIA already assigns decommissioning responsibilities to the NUPRC, making the proposed commission redundant.
With major industry institutions aligned against the bill, lawmakers may face pressure to reconsider the proposal as Nigeria works to sustain investor confidence and maintain regulatory clarity in its energy sector.
