The Ministry of Petroleum Resources, alongside the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian National Petroleum Company Limited (NNPC Ltd.), has jointly opposed the proposed bill to establish the National Commission for the Decommissioning of Oil and Gas Installations (NC-DOGI), 2024.
A statement in Abuja by Eniola Akinkuotu, Head of Corporate Communications and Media at NUPRC, confirmed that the position was delivered during a public hearing organised by the House of Representatives Committee on Petroleum Resources (Upstream).
In his submission, the Minister of State for Petroleum Resources, Dr Heineken Lokpobiri, said that creating a commission for decommissioning and abandonment would not address any community issues, contrary to assumptions by lawmakers. He explained that such issues are already being managed through the Host Community Development Trust Fund (HCDT), which has generated nearly N400 billion for community development projects.
Dr Lokpobiri highlighted that Nigeria has been recording new Final Investment Decisions (FIDs) and witnessing renewed activity across upstream, midstream, and downstream operations—sectors that remained largely stagnant for over a decade before the Renewed Hope administration of President Bola Tinubu.
He warned that the establishment of NC-DOGI could deter investors. “Creating a new agency to handle decommissioning and abandonment would duplicate responsibilities already vested in the NUPRC under Sections 232 and 233 of the Petroleum Industry Act (PIA) 2021,” the minister said. He urged the committee to withdraw the bill, noting that a predictable and stable legal framework attracts investment.
Supporting the minister’s position, NUPRC Chief Executive Mr. Gbenga Komolafe said establishing a separate commission for decommissioning would not align with global best practices, where such functions remain with the upstream regulator.
He asserted, “Decommissioning is not a stand-alone affair. Having a separate regulator for Field Development Plans (FDP) and a different agency for decommissioning and abandonment will prevent the NUPRC from having full oversight of FDPs, as decommissioning and abandonment are integral to any development plan and crucial to achieving its objectives.”
Mr. Komolafe also noted that between 2014 and 2021, capital expenditure for oil and gas investment declined by about 75% due to an unstable legal and regulatory framework, which has only stabilised with the PIA. “Creating such a commission now would signal instability to the international community and deter investment,” he added.
Echoing this view, NNPC Executive Vice-President, Upstream, Mr. Udobong Ntia, stated that a new agency was unnecessary. He pointed out that decommissioning and abandonment are infrequent activities, usually occurring at the end of a field’s lifecycle, which for NNPC, would not be until 2045. “What would such a commission be doing in the meantime?” he asked.
Earlier, the Chairman of the House Committee on Petroleum Resources (Upstream), Mr. Alhassan Doguwa, explained that the bill was intended to address local environmental issues and challenges in oil-producing communities.
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