Major oil companies like ExxonMobil and Shell, seeking to exit Nigeria’s onshore oil sector due to security concerns, may receive expedited approval by taking responsibility for spills, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
At a meeting in Abuja, NUPRC chief Gbenga Komolafe proposed a short-term option for faster approval if companies commit to cleaning up spills and compensating affected communities.
This option could significantly shorten the approval process, currently slated for June.
Alternatively, companies can choose the long-term option, awaiting NURPC’s identification and assignment of liabilities, which could extend approval until August. NUPRC aims to balance expediting the exit process with safeguarding the environment and local communities.
The accelerated option may incur significant costs for oil majors, including cleanup and reparations. Nonetheless, with the departure of major players, NUPRC highlights the significant reserves available in the onshore sector, totaling billions of barrels of oil and cubic feet of gas.
Komolafe emphasizes the importance of ensuring that companies taking over these blocks possess the financial resources and technical expertise necessary for responsible management. The companies are currently evaluating their options and are expected to respond soon.
