NUPRC Approves 94 Decommissioning Plans, $4.4bn FDP Liabilities in 2 Years

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has approved 94 Decommissioning and Abandonment Plans, with a total Field Development Plan (FDP) liability of $4.4 billion in two years. This approval aligns with the Petroleum Industry Act of 2021.

NUPRC Chief Executive, Gbenga Komolafe, revealed that the liabilities will be remitted progressively during the production life of the respective fields. The Nigerian Extractive Industries Transparency Initiative (NEITI) confirmed the safeguarding of a $400 million decommissioning liability.

The NUPRC is enforcing stricter rules for asset transfers to prevent costly mistakes. This move aims to ensure a smooth transition in the industry.