International oil companies (IOCs) divesting from Nigeria’s upstream sector must address abandonment and decommissioning of oil assets.
The Group Managing Director of the Nigerian National Petroleum Company Limited (NNPC), Mallam Mele Kyari. disclosed this on Monday in Abuja, at the opening session of the fifth edition of the Nigerian International Energy Summit.
He said the NNPC must sustain a prosperous business environment for Nigeria by paying particular attention to abandonment and relinquishment costs; severance of operator staff; third party contract liabilities; and competency of the buyer.
Kyari said while the country understands the right of companies to freely divest, it was however, critical to ensure that the right thing is done so as to avoid disruption.
The NNPC GMD said obligations related to abandonment and decommissioning must be fully addressed and discharged in line with global best practices, regulations, convention and law.
