Managing Abandonment Issues in Nigerian Oil & Gas Industry
Article from: OGEL 4 (2020), in Decommissioning
Abstract
Asset Retirement Obligation (ARO) will play a major role in the valuation of Nigerian petroleum assets, as well as in providing a regulatory mechanism which may be used to hold a licensee accountable to Nigerian legislation governing environmental liability for field reclamation and retirement of oil & gas installations by the end of their useful economic life. Viewed as the potential elephant in the room, this lifecycle environmental liability can sometimes exceed terminal asset value, unless it is carefully managed. Experts believe that Nigeria's ARO liability may exceed ...