PETROLEUM MINISTRY, NUPRC, NNPC REJECT NEW DECOMMISSIONING COMMISSION
By: Safiya Abdulrahim Dabban
The Ministry of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian National Petroleum Company Limited (NNPCL) have opposed a bill seeking to create the National Commission for the Decommissioning of Oil and Gas Installations (NC-DOGI), 2024.
At a public hearing by the House Committee on Petroleum Resources (Upstream), the Minister of State for Petroleum Resources, Dr. Heineken Lokpobiri, warned that establishing another agency would duplicate existing roles under the Petroleum Industry Act (PIA) and could scare away investors.
Lokpobiri explained that community concerns were already addressed through the Host Community Development Trust Fund, which has generated nearly ₦400 billion. He emphasized that investor confidence has only recently improved under the Renewed Hope administration, with new investment decisions in the oil and gas sector.
NUPRC Chief Executive, Engr. Gbenga Komolafe, argued that decommissioning and abandonment should remain with the upstream regulator, as done globally, stressing that separating the function would disrupt regulatory efficiency and investment flow.
Similarly, NNPCL’s Executive Vice-President (Upstream), Udobong Ntia, questioned the relevance of a new commission when most decommissioning activities are decades away, noting that the NNPCL’s next such operation isn’t due until 2045.