The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), in collaboration with the Central Bank of Nigeria (CBN), the Office of the Accountant-General of the Federation (AGF) and other key stakeholders, has intensified efforts to strengthen the oversight and administration of the Decommissioning and Abandonment Fund in the oil and gas industry.
The Authority’s Health, Safety, Environment and Community Directorate convened a high-level stakeholders’ engagement with representatives of the CBN, the Nigeria Revenue Service(NRS), the AGF and other regulatory institutions to address financial security concerns and enhance compliance in the management of the fund.
The Decommissioning and Abandonment Fund is designed to ensure that oil and gas operators set aside adequate financial resources for the safe retirement of petroleum facilities at the end of their operational life.
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According to the Authority, the engagement focused on improving the administration of the fund to guarantee that sufficient financial provisions are available for the dismantling and removal of facilities, environmental restoration and the fulfilment of regulatory obligations.
It noted that an effective fund administration framework is critical to protecting the environment, promoting financial accountability and ensuring operators comply with the provisions of the Petroleum Industry Act (PIA) 2021.
The Authority said the forum underscored the importance of collaboration among regulators and financial institutions in safeguarding the integrity of the fund and ensuring that decommissioning liabilities are adequately financed.
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It added that the initiative forms part of ongoing efforts to strengthen governance in the petroleum sector and ensure that operators meet their environmental and financial responsibilities throughout the lifecycle of oil and gas assets.