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 essentialto the oil and gas industry and the economic development ofpetroleum energy based economies. Accordingly, theobligation to carryout global best practices in theimplementation of a decommissioning programme for oil andgas installations is very important especially in Nigeria.Over the years, oil and gas exploration and exploitationactivities have been carried out with little or nosustainability measures which led to the ecologicaldevastation of the environment of the Niger-Delta area ofNigeria where most of the oil exploration takes place. TheInternational Oil Corporations (IOCs) have paid lip servicesto the obligation to ensure sustainable development due toan absence of a legal framework on decommissioning to holdIOCs liable over the years. However, with the enactment ofthe Petroleum Industry Act (PIA) 2021 the much neededimpetus has been given to the quest for global best practicesin the process. Using doctrinal approach, the articleanalyses the obligation to adhere to sustainable measures inthe implementation of decommissioning programme or plan.It seeks to identify the challenges militating against theapplication of global best practices in decommissioning ofoil and gas installations in Nigeria. The paper finds thatcorruption and politicisation of the entire oil and gasindustry 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.