Abstract
It is trite that the declining trend in the use of fossil fuel resources due to associated environmental destruction, has given rise to the demand and investment in a more environmentally friendly energy sources to meet global energy demand. Within the oil and gas industry, the life cycle of its projects involves four fundamental stages which are: exploration, development, production, and decommissioning. Each of the stages bears with it environmental challenges that have occasioned dimensional crises and affected the commercial viability of smooth and continuous operations in most nations including Nigeria. This has resulted in the shift waves of asset divestment by multinationals to national corporations because they (the MNCs) consider divestment as crucial aspect of their strategy to renew and enhance their portfolio. This is because it fits into their objective of net-zero emission energy companies. The host communities of the oil and gas industry attribute the environmental harm caused to national corporations who have a controlling stake in oil and gas assets whereas, national corporations lack the sustainability practices, environmental commitments, and reporting standards that the multinationals have. On the basis of the above, this paper appraises divestment, decommissioning of oil and gas installations, and environmental justice therefrom to the host communities under the Nigerian regulatory regime in the context of existing challenges and gaps with a focus on accountability and best management practices as applied in a range of international jurisdictions and practices.
Keywords: Abandonment, Divestment, Decommissioning, Environmental Justice, Environmental Protection, and Oil and Gas