Introduction
Decommissioning and abandonment are related but distinct end-of-life obligations in upstream petroleum operations. Decommissioning concerns the cessation of operations and the shutdown, removal or disposal of petroleum installations, structures and related infrastructure, together with debris management and environmental restoration where applicable. Abandonment refers more specifically to the plugging and abandonment of a well. Although these obligations arise most visibly at the end of an asset’s productive life, the governing legislation requires them to be planned and funded earlier.
The Petroleum Industry Act 2021 (PIA) establishes the statutory foundation of Nigeria’s decommissioning and abandonment regime. It requires the decommissioning and abandonment of petroleum wells, installations, structures, utilities, plants and pipelines to follow good international petroleum industry practice and applicable regulatory guidelines. It also prohibits decommissioning and abandonment without the written approval of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC or the Commission), or the relevant Authority.
The Nigeria Upstream Petroleum
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