The Ministry of Petroleum Resources, alongside the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and Nigerian National Petroleum Company Limited (NNPC Ltd.), have jointly opposed the proposed National Commission for the Decommissioning of Oil and Gas Installations (NC-DOGI) Bill, 2024. Their stance was announced during a public hearing held by the House of Representatives Committee on Petroleum Resources (Upstream).
Minister of State for Petroleum Resources, Dr. Heineken Lokpobiri, emphasized that existing frameworks—particularly the Petroleum Industry Act (PIA) 2021—already give NUPRC responsibility for decommissioning and abandonment of oil installations. He noted that the Host Community Development Trust Fund (HCDT) has generated nearly N400 billion for community projects, addressing concerns about local community support.
Officials warned that creating the NC-DOGI would duplicate regulatory roles already held by NUPRC, potentially scaring away investors and creating instability in the regulatory environment. NUPRC’s Chief Executive, Gbenga Komolafe, added that separation of decommissioning from upstream regulation contradicts global best practices and would obscure oversight of Field Development Plans, harming project objectives.
NNPC’s Executive Vice-President for Upstream, Mr. Udobong Ntia, agreed while noting that decommissioning is a rare, end-of-life activity for fields, often decades away—questioning what immediate role NC-DOGI would serve.
The bill’s proponents argued it was necessary to address environmental and community challenges in oil-producing areas, but officials urged the committee to reconsider to maintain a stable and predictable legal framework that attracts investments.
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