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This study is all about charting a new course in the way the oil companies operating in the Niger Delta region carry out their activities in order to ensure the environmental sustainability of the region, and improve the economy of the rural communities in the region at the same time. It identifies the constraints to effective implementation of Nigeria s environmental laws and policies especially the Environmental Impact Assessment (EIA) as it concerns oil prospecting, which has hitherto contributed in hindering her environmental sustainability. It also unveils the critical issues concerning the deplorable state of the economy of the local populace of the region. After identifying the various problems contributing to the environmental woes, and the poor economic growth of the region, this research proffers recommendations that should be conscientiously and vigorously implemented to reverse the trend. Although, the oil companies have made some efforts towards providing the necessary infrastructures needed in the region, they need to do more in the area of capacity building, and use of green technologies to ensure healthy environment of their host communities.