Abuja – The House of Representatives Ad-hoc Committee investigating decommissioning and abandonment in the oil and gas sector has accused the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of failing to fully enforce critical provisions of the Petroleum Industry Act (PIA) 2021, leaving a potential $20 billion liability hanging over host communities and the environment.
The sharp rebuke came on Monday during the committee’s resumed investigative hearing when senior officials appeared on behalf of the two Chief Executives who were absent.
NUPRC was represented by Executive Commissioner (Development & Production), Engr. Enorense Amadasu, while NMDPRA sent Executive Director (Health, Safety, Environment & Communities), Dr. Mustafa Lamorde.
Both agencies admitted that bureaucratic bottlenecks, including delays at the Ministry of Justice and issues with Central Bank of Nigeria escrow account guidelines, have stalled full implementation of decommissioning and abandonment (D&A) regulations despite the clear mandates in Sections 232 and 233 of the PIA.
The committee expressed frustration that regulations first drafted in 2003 remain un-gazetted more than two decades later.
Committee Chairman, Hon. Bassey Ekpenyong, said the excuses were unacceptable, stressing that aging oil facilities across the Niger Delta and other producing areas pose imminent environmental and financial risks if operators walk away without proper funding and restoration plans.
“The law is clear. Every field development plan must now come with a decommissioning plan and funded escrow accounts. We are seeing slow movement and that is putting communities in danger of inheriting billions of dollars in liabilities,” Hon. Ekpenyong warned.
The probe is examining:
– Compliance with mandatory D&A plans by operators
– Adequacy of escrow funding for future clean-up
– Enforcement actions taken by regulators against defaulting companies
Lawmakers directed both agencies to return with detailed reports on all approved field development plans since the PIA came into force, evidence of funded decommissioning accounts, and timelines for resolving the outstanding regulatory bottlenecks.
The committee vowed to ensure that no oil company is allowed to abandon wells, platforms, or pipelines without fully funding environmental restoration as required by law.
