Major oil companies, including Exxon Mobil, Shell, TotalEnergies, and Eni, have expressed their intention to exit Nigeria’s onshore oil operations due to security concerns such as sabotage and theft in the Niger Delta region.
However, their plans have been delayed by government authorities over the responsibility for cleaning up oil spillages.
This development came to light during a meeting held on Friday in Abuja between the oil companies and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). Gbenga Komolafe, the Chief of NUPRC, presented two options to expedite the process.
Komolafe proposed a short-term option that offers faster approval if the companies commit to cleaning up spills and compensating affected communities. Under this option, the companies would sign an undertaking acknowledging their obligations.
READ ALSO: Peter Obi Missing as EFCC Reveals 58 Ex-Govs Embezzled N2.187 Trillion
Alternatively, Komolafe outlined a long-term option where NUPRC would identify and assign all liabilities, potentially delaying final approval until August.
NUPRC aims to facilitate a balanced and expeditious exit strategy for the major oil companies, prioritizing environmental protection, meeting community demands, and ensuring the sustainable management of oil assets.
As the companies weigh their options regarding cleanup costs, NUPRC is tasked with assessing the impact of the departure of 26 oil blocks on Nigeria’s revenue sources.
“We aim to ensure that the companies that take over these blocks have the necessary financial resources and possess the technical expertise required to responsibly manage the blocks throughout their lifecycle in accordance with good asset stewardship practices,” Komolafe said.
According to NUPRC, these oil blocks are estimated to hold reserves of approximately 13.76 billion barrels of oil, 2.70 billion barrels of condensate, and around 90.717 trillion cubic feet of gas.
