Disputes in the oil industry are typically inevitable. Not only are the investments in this industry capital intensive, but also the associated risks which range from political to environment, social, and governance (ESG) further aggravate the nature of disputes in this enclave. The Nigerian oil industry is no exception to the snarl of disputes especially through the stages of exploration and production of petroleum. Decommissioning disputes have become increasingly common due to environmental protection policies and demands for sustainability based on the adverse effects of climate change. Furthermore, the current trajectory of divestment in Nigeria have facilitated the need to scrutinize obligations on decommissioning and the potential disputes that could erupt. This chapter intends to explore the challenges surrounding these issues and the role of arbitration in the resolution of these disputes. It examines the evolving nature of the oil industry, the relevant legal frameworks, and how arbitration is shaping dispute resolution in this sector.