Nigeria's 2026 Decommissioning Regulations for Oil Sector

The Nigeria Upstream Petroleum Decommissioning and Abandonment Regulations 2026 were issued under sections 232 and 233 of the Petroleum Industry Act 2021 (PIA), replacing the 2023 Regulations. These regulations require upstream operators, investors, and lenders to plan and fund decommissioning and abandonment activities earlier in the project lifecycle.

Key changes include a project-stage approach for submitting decommissioning and abandonment plans, which must now be submitted with applications for work programmes or Field Development Plans. Existing plans must be updated within six months of the 2026 Regulations' commencement.

The regulations prohibit decommissioning and abandonment without written approval from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). Additionally, the framework distinguishes between a Decommissioning and Abandonment Plan and a Decommissioning and Abandonment Programme, with the former being part of the project-planning and funding architecture.

These changes aim to enhance compliance with good international petroleum industry practices.