NUPRC secures $400m in decommissioning liabilities, approves 94 plans

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has confirmed it has secured more than $400 million in pre-sale decommissioning and abandonment liabilities, as part of tighter regulations governing recent asset transfers in the oil and gas sector. The initiative is designed to avert the financial and environmental risks that have burdened other countries in the wake of global divestment cases.

NUPRC Chief Executive, Engineer Gbenga Komolafe, revealed this during the Nigerian Extractive Industries Transparency Initiative (NEITI) Companies Forum in Lagos.

Speaking on his behalf, the Deputy Director of Human Resources, Efemona Bassey, detailed the commission’s progress in strengthening accountability within the industry.

“The results from 2024 speak for themselves,” Bassey said. “Over $400 million in pre-sale decommissioning and abandonment liabilities have been secured through Letters of Credit and escrow accounts.”

He explained that the commission is also enforcing full compliance with Host Community Development Trust obligations. Furthermore, environmental remediation commitments valued at more than $9.2 million have been pledged, pending the official gazetting of the Environmental Remediation Fund (ERF) Regulations.

Since April 2023, the commission has approved 94 Decommissioning and Abandonment (D&A) plans in line with the Petroleum Industry Act (PIA). These approvals represent total liabilities of $4.424 billion, which will be progressively deposited into dedicated escrow accounts over the production lifespan of the respective fields.