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OIL AND GAS SECTOR House Pushes For Law On Decommissioning Of Facilities Nationwide

 

Nigeria’s Lower Legislative Chamber is seeking support of stakeholders in the oil and gas sector to establish a regulatory framework for the safe and sustainable decommissioning of petroleum facilities across the country.

Chairman, House Committee on Petroleum Resources (Upstream), Alhassan Ado-Doguwa, made this known during a public hearing on the National Commission for Decommissioning of Oil and Gas Installations Bill, 2024, held at the National Assembly Complex, Abuja

Ado-Doguwa explained that the proposed legislation underscores the National Assembly’s commitment to balancing economic growth in the oil and gas sector with environmental protection and the welfare of host communities.

The committee Chairman stressed that the public hearing was convened to provide a transparent and inclusive platform for stakeholders to make inputs that will guide the House in taking an informed decision on the Bill for easy implementation by the executive.

He assured that establishing a commission will address the long-standing challenges on the decommissioning and abandonment of oil and gas facilities, issues that have continued to generate environmental, economic, and social concerns, particularly at the host communities.

Ado-Doguwa, who commended stakeholders for honouring the Committee’s invitation and their continued commitment to support national development urged them to engage constructively and provide well-informed perspectives to be used in transforming the oil and Gas industry.

In his submission, a Director at the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Emmanuel Macjaja, told the committee that creating a separate agency would undermine the regulatory clarity and predictability that the Petroleum Industry Act (PIA) 2021 sought to achieve.

Macjaja maintained that the PIA 2021 clearly delineated the roles of the Nigerian Upstream Petroleum Regulatory Commission and the Midstream and Downstream Authorities, which are effectively discharging their decommissioning and abandonment regulatory responsibilities.

He, therefore, urged the committee to retain decommissioning and abandonment oversight within the existing petroleum regulatory framework to ensure technical coherence, economic efficiency, and alignment with the PIA 2021 and global standards.

On his part ,Speaker of the house, Abbas Tajuddeen, represented by the Leader Julius Ihonvbere, said the hearing was part of the house commitment to complement federal government’s reforms process in the oil and Gas sector for rapid economic growth.

Abbas however, assured the participating stakeholders that the House will continue to run an open and transparent operation that consider citizens voice relevant.

Stakeholders at the public hearing include the Ministry of Petroleum Resources, the Federal Ministry of Environment, the National Oil Spill Detection and Response Agency (NOSDRA), the National Environmental Standards and Regulations Enforcement Agency, oil and gas operators, civil society groups, and academia among others.

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