NUPRC opposes establishment of oil, gas decommissioning commission

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has opposed the National Commission for Decommissioning of Oil and Gas Installations (NC-DOGI) constitution Bill (2024).

The presumption of NUPRC was contained successful a memorandum submitted astatine a nationalist proceeding organised by the House Committee connected Petroleum Resources (Upstream) successful Abuja.

Earlier, the Chairman, House Committee connected Petroleum Resources (Upstream), Rep. Ado Doguwa (APC-Kano), said that implicit the years, Nigeria’s petroleum manufacture had continued to look challenges successful the decommissioning and abandonment of lipid and state facilities.

According to him, these challenges person environmental, economical and societal impacts, peculiarly connected big communities.

“This, therefore, calls for a person look astatine whether the existing regulatory frameworks are capable oregon request to beryllium strengthened and whether establishing a dedicated body, specified arsenic the projected commission, would amended service nationalist interests.

“It is, however, important to enactment that the Petroleum Industry Act (PIA) already provides for decommissioning and abandonment nether Sections 232 and 233, assigning circumstantial responsibilities to the NUPRC and MDPRA and besides establishing a money to guarantee these activities are decently planned and financed successful enactment with regulations,” helium said.

The president said that the NC-DOGI measure which was sponsored by the enactment of the location is simply a important legislative connection arsenic it sought to code matters that affected quality and biology welfare.

He said it reflected parliament’s committedness to ensuring the maturation of the lipid and state sectors arsenic good arsenic ensuring biology work and sustainable assemblage development.

Doguwa explained that the nationalist proceeding was portion of the legislative process of the National Assembly that ensured transparency, information and inclusiveness successful lawmaking.

He said that the intent for engagement was to supply a ceremonial level for stakeholders to explicit their views, marque observations and connection recommendations that volition guarantee a just and informed determination by parliament.

In the memorandum, the NUPRC had opposed the projected constitution of the commission, saying it is unnecessary, duplicative and contrary to planetary champion practices and is apt to discourage investments successful the lipid and state industry.

The committee maintained that the PIA already empowers NUPRC and Nigerian Midstream and Downstream Petroleum Regulatory Authority (MDPRA) to efficaciously negociate decommissioning successful their respective sectors of the lipid and state manufacture and these responsibilities are presently being discharged competently.

“Section 232 of the Petroleum Industry Act (PIA 2021) mandates each licensee/lessee to taxable a Decommissioning and Abandonment Plan aligned with the approver Feld Development Plan and the Commission already enforces this request done an established reappraisal workflow.

“The House Committee connected Petroleum Resources (Upstream) is respectfully urged to support decommissioning and abandonment oversight wrong the existing petroleum regulatory model (NUPRC and NMDPRA).

“This attack volition guarantee method coherence, economical ratio and alignment with some PlA 2021 and planetary standards, thereby safeguarding Nigeria’s interests successful the lipid and state assemblage and promoting the Federal Government’s easiness of doing concern initiatives,” it said.

(NAN)

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