By Obiabin Onukwugha
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has secured over $400 million, an equivalent of ₦603.4 billion, in pre-sale decommissioning and abandonment liabilities in the divestment processes by oil multinationals.
NURPC Chief Executive, Gbenga Komolafe, disclosed this while speaking on the theme: “Divestments, Liabilities, and the Impact of Ongoing Reforms on Extractive Companies in Nigeria” at the Nigerian Extractive Industries Transparency Initiative (NEITI) Companies Forum in Lagos, on Wednesday,
A statement by NUPRC’s Head of Media and Strategic Communications, Eniola Akinkuotu, said Komolafe said the Commission’s approach was hinged on lessons from the North Sea, where decommissioning costs are projected to hit £27 billion by 2032; the Gulf of Mexico with costs exceeding $9 billion; and Canada’s Alberta province with more than 97,000 inactive wells carrying liabilities estimated between C$30 billion and C$70 billion.
“These lessons guided recent divestment approvals involving major players such as NAOC to Oando Energy Resources; Equinor to Chappal Energies; Mobil Producing Nigeria Unlimited to Seplat Energies; SPDC to Renaissance Africa Energy; and TotalEnergies to Telema Energies.
“Without a robust and enforceable framework for abandonment and decommissioning, divestment transitions can create lasting financial and environmental burdens. Nigeria is not immune to this challenge, which is why bold steps have been taken under the Petroleum Industry Act and regulatory actions to prevent costly mistakes,” he said.
The NURPC chief executive, who was represented at the event by the Deputy Director, Human Resources, Corporate Services & Administration, Efemona Bassey, further stated that since April 2023, the commission has approved 94 Decommissioning and Abandonment (D&A) plans, in line with the PIA.
“These represent liabilities of $4.424 billion, which will be remitted progressively over the life of the respective oil fields into designated escrow accounts, he said, adding, “The results from 2024 speak for themselves. Over $400 million in pre-sale decommissioning and abandonment liabilities have been secured through Letters of Credit and escrow accounts.”
Komolafe said Host Community Development Trust obligations are fully honoured, while environmental remediation commitments worth over $9.2 million have been pledged.
He added that each of the divestment was subjected to rigorous scrutiny, including assessments of technical and financial capacity, as well as upfront escrow arrangements for decommissioning obligations.
NEITI’s Executive Secretary, Dr. Orji Ogbonnaya Orji, described the NEITI Companies Forum as a key platform for fostering closer partnerships with oil, gas, and mining firms while improving Nigeria’s overall business environment.
He emphasized that compliance with NEITI’s audit process is not optional but a legal requirement for companies in Nigeria’s extractive industries, adding that transparency and accountability remain vital for building investor confidence, strengthening public trust, and aligning Nigeria’s extractive sector with global best practices.
