Environmental Due Diligence in Petroleum Asset Transactions: Professional Standards for Legal Practitioners in Nigeria

This study examines professional standards for environmental due diligence in petroleum asset sale and acquisition transactions in Nigeria, addressing a growing area of legal risk as IOCs divest onshore assets to local operators. Environmental due diligence identifies legacy contamination, unquantified remediation liabilities, and ongoing regulatory non-compliance before asset transfer, yet no formal professional standard for this practice exists in Nigerian petroleum law. Using a professional legal research design, the study reviews the content of twelve environmental due diligence reports prepared for petroleum asset transactions in Nigeria between 2020 and 2024, supplemented by interviews with eight petroleum transaction lawyers and three environmental consultants in Lagos and Port Harcourt. Findings indicate that current due diligence practice varies widely in scope and quality, often undervaluing environmental liability exposure. The study recommends the adoption of a mandatory environmental due diligence protocol for NUPRC-approved petroleum asset transfers and accreditation of environmental due diligence practitioners by a recognised professional body. Keywords: environmental due diligence, asset transactions, petroleum law, Nigeria, professional standards.