The Ministry of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian National Petroleum Company Limited (NNPC) have jointly opposed the proposed National Commission for the Decommissioning of Oil and Gas Installations (NC-DOGI) bill, 2024.
Eniola Akinkuotu, Head, Corporate Communications and Media, in a statement said the position was presented at a public hearing by the House of Representatives Committee on Petroleum Resources (Upstream).
Dr. Heineken Lokpobiri, Minister of State for Petroleum Resources, argued that the new commission would not solve community issues, which are already addressed through the Host Community Development Trust Fund (HCDT), generating nearly N400 billion for community projects.
He emphasized that Nigeria’s upstream, midstream, and downstream sectors are witnessing renewed investment and activity following years of stagnation, attributing this progress to the Renewed Hope administration of President Bola Tinubu.
Dr. Lokpobiri warned that creating NC-DOGI risks deterring investors by introducing regulatory duplication, as the NUPRC currently holds responsibility for decommissioning under the Petroleum Industry Act (PIA) 2021.
Engr. Gbenga Komolafe, Chief Executive of the NUPRC, stated the establishment of NC-DOGI conflicts with global best practices, where decommissioning is managed by the upstream regulator.
He explained that splitting responsibilities between different bodies for Field Development Plans and decommissioning would undermine regulatory coherence and jeopardize development objectives.
Highlighting the 75% decline in oil and gas capital expenditure from 2014 to 2021 due to regulatory instability, Engr. Komolafe cautioned that altering the current framework could send negative signals to international investors.
Mr. Udobong Ntia, Executive Vice-President, Upstream at NNPC, agreed with the Ministry and NUPRC on the unnecessary nature of a new agency.
He noted that decommissioning occurs at the end of a field’s life—which for NNPC assets would not happen until 2045—and questioned the interim role of NC-DOGI.
The House Committee Chairman, Hon. Alhassan Ado Doguwa, explained that the bill was prompted by concerns over environmental and local community challenges in oil-producing areas.
The Ministry, NUPRC, and NNPC have recommended that the bill be set aside to preserve regulatory stability and sustain investor confidence.
