International Law Compliance in the Nigerian Oil and Gas Industry: Environmental and Contractual Obligations

📖 ABSTRACT/OVERVIEW

This study examines international law compliance requirements in Nigeria's oil and gas industry, focusing on the interaction between environmental treaty obligations, production sharing contracts, and host community rights. Nigeria's oil sector, concentrated in the South South geopolitical zone, operates within a complex web of domestic regulation and international legal requirements drawn from environmental law, investment law, and human rights instruments. Using a professional review methodology, the research analyses the obligations arising under MARPOL, the UN Guiding Principles on Business and Human Rights (UNGPs), and the Oil Pollution Act framework, and assesses how international oil companies operating in Nigeria manage compliance with these obligations. It draws on recent SPDC, Total, and Eni environmental incident reports, the work of the National Oil Spill Detection and Response Agency (NOSDRA), and the findings of the Ogoniland assessment conducted by UNEP. The paper identifies compliance gaps particularly in the areas of oil spill remediation timelines, community consultation before new drilling operations, and transparency in beneficial ownership of oil block licences. It also evaluates the capacity of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in enforcing international legal standards. Findings indicate persistent non-compliance linked to institutional weaknesses and inadequate contract enforcement mechanisms. Recommendations include mandatory UNGPs reporting requirements for oil companies in Nigeria, enhanced NOSDRA enforcement capacity, and community benefit agreements as a contractual compliance tool. Keywords: oil and gas, environmental compliance, UNGPs, South South Nigeria, NUPRC.

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