DISCHARGING SUSTAINABLE DEVELOPMENT OBLIGATIONS BY PARTIES TO A DECOMMISSIONING PROGRAMME UNDER THE PETROLEUM INDUSTRY ACT (PIA) 2021: ENSURING GLOBAL BEST PRACTICES

Abstract

The obligation to ensure sustainable development is essential to the oil and gas industry and the economic development of petroleum energy based economies. Accordingly, the obligation to carryout global best practices in the implementation of a decommissioning programme for oil and gas installations is very important especially in Nigeria. Over the years, oil and gas exploration and exploitation activities have been carried out with little or no sustainability measures which led to the ecological devastation of the environment of the Niger-Delta area of Nigeria where most of the oil exploration takes place. The International Oil Corporations (IOCs) have paid lip services to the obligation to ensure sustainable development due to an absence of a legal framework on decommissioning to hold IOCs liable over the years. However, with the enactment of the Petroleum Industry Act (PIA) 2021 the much needed impetus has been given to the quest for global best practices in the process. Using doctrinal approach, the article analyses the obligation to adhere to sustainable measures in the implementation of decommissioning programme or plan. It seeks to identify the challenges militating against the application of global best practices in decommissioning of oil and gas installations in Nigeria. The paper finds that corruption and politicisation of the entire oil and gas industry process in Nigeria among others constitute a hinderance to the effective compliance of global best practices which engenders sustainable development. It is suggested that sustainable development obligation be enforced through stringent compliance by the Regulatory body under the PIA 2021.