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Senate To Investigate Use Of Budgetary Allocation For Decommissioning Oil Projects

November 28, 2019

The Senate made this resolution during plenary on Wednesday.



The Senate has resolved to investigate the use of budgetary allocations made by oil companies for decommissioning petroleum-related projects. 

The Senate made this resolution during plenary on Wednesday.

The motion titled ‘The need to investigate the degree of enforcement of abandonment and decommissioning obligations in oil and gas exploration contracts,’ was made by Gershom Bassey, who represents Cross River South. 

Stella Odua, an Anambra lawmaker, said the livelihood of the host communities where these projects were sighted need to be protected.

“We need to ensure host communities are protected from the horrible practice that goes on in oil exploration.” 

Clifford Odia from Edo State supported the move, saying such projects damage the ecosystem.

He said, “This is all about disrupting the ecosystem. 

"I think it is important to ensure these provisions are properly endorsed in order to protect the environment.” 

Following the support of the motion by various senators, the chamber decided it would mandate the Committee on Petroleum Resources (Upstream) to conduct a comprehensive review of the relevant laws, product sharing contracts, Joint Venture Contracts and arrangements, governing abandonment, decommissioning, remediation and investigate the degree of compliance with these laws by oil companies operating in Nigeria.

The petroleum resources committee is also tasked with summoning all exploration companies operating in Nigeria to give a comprehensive account of budgeted allocation in their annual budget for mandatory abandonment and decommissioning running into billions of dollars unaccounted for.