Stakeholders in Nigeria?s oil and gas industry have raised concerns over a proposal to establish a new regulatory agency solely dedicated to the decommissioning of oil production facilities, insisting that existing structures are already adequately equipped for the task.

During an interactive session with members of the House of Representatives and key players in the sector on Thursday, representatives of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and others argued that creating a new commission would amount to duplication of responsibilities and unnecessary bureaucracy.

The meeting, chaired by the House Committee chairman on Petroleum (Upstream), Alhassan Ado Doguwa, brought together officials from the Ministry of Petroleum Resources (MPR), Ministry of Environment (FME), NUPRC, the National Oil Spill Detection and Response Agency (NOSDRA), and the National Environmental Standards and Regulations Enforcement Agency (NESREA).

Doguwa underscored the significance of the proposed commission, describing the NC-DOGI Bill as a ?landmark legislative proposal aimed at establishing a dedicated commission to coordinate all decommissioning efforts in Nigeria?s oil and gas sector.?

?This Bill is not just another legislative initiative?it is a leadership Bill,? he said. ?It is designed to ensure Nigeria meets globally accepted standards of decommissioning, while protecting host communities and the environment from the harmful effects of improper facility abandonment.?

Despite the Chairman?s optimism, the proposal met strong opposition from industry regulators and stakeholders, who maintained that Nigeria already has a sufficient legal and institutional framework under the Petroleum Industry Act (PIA) to manage decommissioning and abandonment.

The Director of Production and Development at the NUPRC, Mark Emmanuel, argued that decommissioning obligations are already embedded in the licensing framework and it is strictly enforced.

?The PIA under Sections 232 and 3 already makes elaborate arrangements for decommissioning and abandonment,? he said. ?It is the legal obligation of the licensee or lessee to fund, plan, and carry out decommissioning at the end of an oil field?s life cycle. The funds set aside for this purpose are not government revenue but are controlled by the operators under the NUPRC?s supervision.?

He further warned that establishing a new agency would be premature and wasteful, stressing that most oil fields in Nigeria are still active.

?If you create a standalone commission now, it will be idle for the foreseeable future. Unlike the North Sea, where decommissioning is active, Nigeria is still in a growth phase. More investments are being made to expand production, not shut it down,? he added.

The Director, Environmental Assessment Department at the Ministry of Environment, Mrs. Rofikat Odetoro, echoed similar concerns, warning against creating overlapping structures.

?This is already embedded in the Environmental Impact Assessments (EIA) and current regulations,? she said. ?Instead of creating a new agency, let?s empower NOSDRA and the relevant existing institutions.? (Weekend Trust)

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