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Nigeria: Authorities want to end activities of oil companies engaged in exploration resulting in oil spills

Author: PM News (Nigeria), Published on: 4 December 2019

‘Senate moves against foreign companies involved in oil spill’ 27 November 2019

The Senate has commenced moves to put an end to what it described as the “illegal” activities of oil companies engaged in exploration resulting in oil spills and environmental degradation of host communities in Nigeria. The Senate on Wednesday mandated its Committee on Petroleum (Upstream) to comprehensively review relevant laws governing abandonment, decommissioning and remediation with a view to establishing the level of compliance by oil companies operating in Nigeria.

…The upper chamber also charged its committee to urge all oil companies operating in Nigeria to give a comprehensive account of budgeted allocations in their annual budgets for mandatory abandonment and decommissioning, running into billions of dollars unaccounted for. It further called for further investigations as to how budgeted allocations for this purpose were applied or expended over the years.

…According to the lawmaker, such laws make sufficient provisions for mandatory abandonment and decommissioning for oil companies. Senator Bassey bemoaned the conduct of oil companies in Nigeria for “failing to restore exploited sites after the expiration of their lease as witnessed in the Niger Delta.” He added that at the point of transfer of interest by one company to another, “there is lack of clarity in many instances with regards to financial liability for abandonment and decommissioning thereby causing untold hardship to the host community.”

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