By Gift ChapiOdekina, Abuja
ABUJA — The House of Representatives Ad-hoc Committee on Decommissioning and Abandonment in the oil sector has raised concerns over the non-compliance with provisions of the Petroleum Industry Act (PIA) and other relevant laws by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), describing it as a major impediment to effective decommissioning.
The remarks followed submissions by officials of the two agencies at a resumed investigative hearing of the committee at the National Assembly. The CEOs of both agencies were represented by senior officials: NUPRC CEO Eng. Farouk Ahmed by Executive Commissioner, Development and Production Engineering, Enorense Amadasu, and NMDPRA CEO Eng. Gbenga Komolafe by Executive Director of Health, Safety, Environment and Communities, Dr. Mustafa Lamorde.
The committee was inaugurated to investigate the adherence of operators and regulators to PIA provisions regarding decommissioning and abandonment (D&A), following concerns over a $20 billion funding gap and the environmental and fiscal risks posed by aging oil infrastructure. The probe examines companies’ D&A plans, financial provisions including escrow accounts, and regulatory enforcement to safeguard communities and the environment from liabilities arising from abandoned assets.
During the hearing, both NUPRC and NMDPRA officials cited several challenges delaying full implementation of D&A regulations, including legal technicalities at the Ministry of Justice, responsibilities of the Central Bank of Nigeria regarding escrow accounts, and other operational constraints.
NUPRC’s Enorense Amadasu stated: “The NUPRC has strongly enforced Sections 232 and 233 of the PIA 2021, engaging extensively with operators to ensure approved field health plans include comprehensive decommissioning and abandonment strategies. The goal is to ensure that at the end of an asset’s life cycle, the environment is restored close to its original state.”
Committee Chairman Hon. Bassey Ekpenyong expressed disappointment over the delays in implementing the PIA and other extant laws. “The regulation was approved in 2003 and submitted to the Minister of Justice, yet significant delays persist,” he said, emphasizing the urgent need for regulatory compliance to prevent environmental degradation and fiscal losses.
The committee urged both NUPRC and NMDPRA to accelerate enforcement of decommissioning provisions and ensure that oil operators fulfill their obligations under the law.
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