By Paul Effiong, Abuja
Critical stakeholders in the oil and gas sector on Thursday opposed a legislative proposal seeking to create a new commission for decommissioning and abandonment of oil facilities.
They noted that the move could lead to duplication of existing regulatory structures.
In his welcome address during the strategic meeting convened by his panel, the Chairman, House of Representatives Committee on Petroleum Resources, (Upstream), Alhassan Doguwa said the meeting was strategic to seek the imput of key players on the new legislation.
At the meeting, industry players insisted that the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, and other agencies already handle such responsibilities under existing laws.
The event drew participants from the Ministry of Petroleum Resources, Ministry of Environment, National Oil Spill Detection and Response Agency, NOSDRA, as well as the National Environmental Standards and Regulations Enforcement Agency, NESREA, including NUPRC.
Doguwa, who described the proposed NC-DOGI Bill as a landmark legislation intended to streamline decommissioning efforts and ensure that host communities and the environment are protected from the adverse effects of abandoned oil infrastructure, charged major stakeholders to feel free and contribute their views and opinions.
However, NUPRC’s Director of Production and Development, Mark Emmanuel argued that the Petroleum Industry Act, PIA, is already providing robust provisions for decommissioning and abandonment under Sections 232 and 3 of the Act.
He emphasized that licensees are mandated to fund and execute decommissioning projects, with funds kept under strict regulatory supervision.
He expressed reservations, stating that creating a new agency would be “wasteful and unnecessary,” given that most oil fields remain in active production rather than approaching decommissioning stages.
In her presentation. Rofikat Odetoro of the Ministry of Environment’s Environmental Assessment Department argued that environmental regulations already integrate decommissioning obligations through Environmental Impact Assessments, EIAs.
She urged lawmakers to strengthen existing institutions like NOSDRA instead of contemplating to establish a new structure, which could add to bureaucratic bottlenecks and drain public resources meant for Nigeria and Nigerians.
Meanwhile, the chairman of the Committee assured stakeholders that their submissions would guide further deliberations, even as he vowed to pursue an inclusive process with additional consultations and possible oversight assessments in oil-producing communities before the House will decide the fate of the proposed legislation.
