Mkpoikana Udoma
Port Harcourt — Nigeria’s Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has urged the National Assembly to halt moves to establish a new National Commission for the Decommissioning of Oil and Gas Installations, NC-DOGI, warning that such legislation would duplicate existing functions already provided for under the Petroleum Industry Act, PIA.
Speaking during a public hearing organised by the House of Representatives Committee on Petroleum Resources (Upstream), Lokpobiri said the PIA has ushered in a new era of stability and investor confidence across Nigeria’s oil and gas value chain, which must not be disrupted by conflicting laws.
“Our oil sector is witnessing a robust transformation today because of the leadership President Bola Ahmed Tinubu has injected into the system, especially with the full implementation of the Petroleum Industry Act, PIA,” the Minister stated.
“The PIA has restored investor confidence and encouraged new investments across the value chain.”
He noted that under the current administration’s Renewed Hope agenda, the industry is experiencing renewed activity, with multiple Final Investment Decisions being recorded after years of stagnation.
“The sector is now recording new FIDs and witnessing renewed operations in upstream, midstream, and downstream activities, developments that were stagnant for over a decade before the Tinubu administration,” Lokpobiri said.
Highlighting specific provisions of the Act, the Minister reminded lawmakers that Sections 232 and 233 of the PIA already provide for the management and funding of decommissioning and abandonment obligations, with the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, designated as the responsible authority.
According to him, creating a new commission would not only be redundant but could also undermine investor confidence in Nigeria’s reform-driven petroleum framework.
“I advised the House to step down the Bill, as it would duplicate existing responsibilities. A predictable and stable legal framework attracts investors; any deviation will send wrong signals to the global community, something we cannot afford at this crucial time,” he warned.
Lokpobiri further stressed that consistency in policy and regulation is key to sustaining the positive momentum the PIA has generated.
“The influx of investments we have attracted highlights the critical importance of a stable legal framework like the PIA, which has reinforced investor confidence,” he added.
According to him, his position underscores the Tinubu administration’s commitment to maintaining a unified regulatory environment, particularly at a time when Nigeria seeks to expand crude production capacity and attract global capital into upstream projects.
The hearing was part of legislative efforts to assess the environmental, technical, and financial implications of decommissioning aging oil and gas assets across the Niger Delta.
This article was originally posted at sweetcrudereports.com
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