Extraordinary Federal Republic of Nigeria Official Gazette No. 41 Lagos - 3rd March, 2023 z Vol. 110 Government Notice No. 15 ? The following is published as supplement to this Guzelte + Short Title Page B69-109 8 — Midstream and Downstream Petroleum Operations Regulations. emment Printer. Lagos. Nigeria 50, Printed and Published by The Federal Got EGP 26/2 ‘Local : NS0.000,00 Overseas : N6S,000.00 [Surface Mail] Dbserihers who wish (o obtain Gaze for amended Subscriptions Anna Subscription from #st January. 2023, :80.000.00 [Second Class Air Mull], Present isswe N3.000 per copy fier Ist January should apply to the Federal Government Printer. 1B69 PETROLEUM INDUSTRY ACT, NO. 6, 2021 MIDSTREAM AND DOWNSTREAM PETROLEUM OPERATIONS REGULATIONS, 2023 ARRANGEMENT OF REGULATIONS Regulation Parr 1 — General, Provisions 1, Objectives. 2. Application. 3. Application for licence. permit or authorisation. Par If — Duries aNp OBLiGations 4. Duties of licensee and permit holder 5. Duties ofa manager. 6. Duty to provide information. Paar IIL — Importation, Exporrarton, SippinG, UNSUIPPING, LANDING OF PETROLEUM, PETROLEUM DERIVATIVES, PETROLEUM LiQuiDs OR PerRoL.FuM PRobucTSs 7. Entry into prescribed port. 8. Compliance with statutory requirements for berthing, 9. Declaration of quantity and quality of petroleum, petroleum derivatives, petroleum liquids or petroleum products carried by vessels entering harbour. 10. Declaration by vessel leaving harbour. IL. Testing of samples of petroleum or petroleum derivatives, petroleum liquids, or petroleum products. Prohibition of discharge into waters. Payment to the Authority, Midstream and Downstream Gas Infrastructure Fund. op Part IV — Mipstream AND Downstream Gas OPERATIONS 14. Licences, permits and authorisations for midstream and downstream: gas operations. 15. Gas transportation and distribution. 16. LPG or CNG bulk cylinder peddling (exchange) operations. 17. Bulk gas storage. 18. Wholesale gas supplyB70 19, 29, 31 32. RB. 34, 85, 36. 37, 38. 39, 40. 4 42. Ad, 4s. 46. 41, 48. 49. Retail gas supply Gas aggregation Indlustrial gas storage and utilisation. Gas export and import terminal facilities. Natural gas and gas products import and export permit V— Minstream axb DowNstriam Perrotcum Liguins OPerarions Licenses. permits and authorisations for midstream and downstream petroleum liquids operations Petroleum liquids transportation pipeline. Petroleum liquids and petroleum product transport network operator. Virtual transportation for petroleum liquids. Bulk petroleum liquids storage Petroleum products backloading. Petroleum products distribution Wholesale petroleum liquids supply. Bunkering and barge vessel licence. Industrial petroleum liquids storage and utilisation Petroleum liquids export and import Petroleum liquids and petroleum products import and export permit. Product certification and accounting. Part VI — MisceLaNrous Provisions Midstream and downstream oil and gas service compa Conformity assessment. Technology adaptation Deferment of operations, Reconciliation, Right to enter and i Prescribed Returns. Form of application. Notices for non-compliance. General offences. Powers to issue guidelines. Interpretation, Citation, Scweputes spect premises in case of offences,S. L No. 8 of 2023 PETROLEUM INDUSTRY ACT, NO. 6, 2021 MIDSTREAM AND DOWNSTREAM PETROLEUM OPERATIONS REGULATION: (9h Day of February, 2023) In ever ise of the powers conferred on it by sections 33, 125(3) and 174(3) of the Petroleum Industry Act, No, 6,2021 (“the Act”) and all other powers enabling it in that behalf, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (“the Authority”), makes the following Regulations — Parr I~ GENERAL PROVISIONS, 1. The object es of these Regulations are to— (wy regulate the operations of companies in the Nigerian midstream and downstream petroleum sector : (4) provide procedure for the grant of licences, permits, authorisations and payment of fees : and (c) provide sanctions and penalties for failure to comply with these Regulations, 2. These Regulations applies to operations in the midstream and downstream petroleum sector. 3.1) Subjectto the provisions of these Regulations, an application fora licence, permit or authorisation to undertake any of the operations under these Regulations shall be made in a form prescribed in a guidelines or directions issued by the Authority (2) A licence issued pursuant to these Regulations shall expire on the 31st December of the year issued, except otherwise stated in the licence. (3) Without prejudice to subregulation (2) of this regulation, where there is a modification of a facility with change in capacity or product slate on oF before the 3 I st of December, the subsisting licence shall become invalid, and a new licence shall be issued. (4) An application for renewal ofa licence, permit or authorisation shall be made not less than 30 days, or such longer period as the Authority may prescribe. before the expiration of the original licence and in a manner prescribed by the Authorit (5) A licensee or permit holdershall obtain requisite approvals Authority prior to the commencement of any petroleum operation B71 Commen ment Objectives. Application. Application for licence. permit or authorisation,B72 Duties of licensee ancl permit holder Duties of a ‘manager Part {] — Dutics anp OpiiGations 4. A licensee or permit holder shall — (4) appoint, in writing. a manager who shall take continual chai operations authorised by the Authorit (5) notify the Authority of every appointment made under paragraph (a) of this regulation and any subsequent change not later than 7 nours of such appointment or change (c) provide its personnel with personal protective equipment and ensure that such equipment is maintained in good con (dl) establish emergency medical procedures including an appropriately manned and well-equipped onsite clinic, standard first aid boxes, automated external defibrillators situated at strategic locations in the facility, and medical evacuation procedures : (ce) provide fire-fighting and first aid equipment at every facilit installation in accordance with best industry standards : ions or (f) ensure that all personnel and contractors undergo occupational fitness tests and minimum industry training as may be specified by the Authority ; (g)_ provide clear, comprehensive, safe and practical operational procedures and guidelines for its personnel : (A) develop good health protection and promotion programmes for its sonnel and mandate all its contractors to take similar actions : (2) ensure thatall contract documents entered into with contractors specify the responsibilities of contractors with regards to safely of operations ; (7) develop and maintain contingeney procedures and measures for the safety of personnel and equipment in an emergency : (A) develop and regularly update an integrated emergency plan for the management of hazardous events and accident situations likely to occur and ensure that drills are carried out periodicals pe (2) ensure that laboratories used for petroleum operations are accredited by, and operated in a manner prescribed by the Authority ; (im) ensure that its operations are undertaken pursuant to a valid licence, permit or authorisation as stipulated in the First Schedule to these Regulations ; and (2) perform such other duties as the Authority may prescribe from time to time. 5. A manager appointed under these Regulations shall — (q) ensure compliance with the provisions of these Regulations, guidelines or any other directives issued by the Authority ;(6) appoint in writing, a legal and regulatory compliance officer and report the appointment and any subsequent change to the Authority not later than 72 hours of such appointment or change ; (©) appoint in writing, competent persons for the purpose of general supervision of specific operations in midstream and downstream facilities. including construction, operations, maintenance, processing, storage, distribution, retailing, health, safety. environment, and community matters: (a) report any appointment and subsequent change of a competent person not later than 72 hours of such appointment or change to the Authority ; (@) ensure that competent persons are given appropriate training for the efficient and safe performance of their duties : (7) maintain a register setting out the details and responsibilities of the competent persons, mutual relationships and lines of reporting and communication : (g) provide operational office and accommodation for the personnel of the Authority as the Authority may direct : (J) ensure that every operation or procedure is carried out by qualified and competent personnel, and adequate systems are put in place to determine and approve qualified personnel for each operation and procedure ; (i) ensure the availability of critical spare parts for equipment in compliance with the requirements and directives of the Authority : (/) ensure that the facility’s landscaping, surroundings, and environment are well maintained at all times and kept in good condition : and (4) ensure that the facility is free of items, which may constitute hindrance to evacuation or escape of personnel in the event of a fire, leak or spill 6. The Authority may direct a person to provide information ordata on any midstream and downstream operations and the person shall comply with the directive in the prescribed manner within the time-frame stipulated in the direction. Parr II] — Importation, EXPortarion, S1uppinG, UNSIIPPING, LANDING OF PETROLEUM, PETROLEUM DeRivarives, PETROLEUM LiguiDs OR PETROLEUM PRopucTs: 7—(1) A person shall not import petroleum, petroleum derivatives, Petroleum liquids or petroleum products through a port in Nigeria other than a prescribed port. (2) A person who intends to import petroleum, petroleum derivatives, Petroleum liquids or petroleum products through a port other than the prescribed Port shall apply to the Authority in writing, stating the quality, quantity and nature of the petroleum, petroleum derivatives, petroleum liquids or petroleum products to be imported B73 Duty to provide information, Entry into prescribed portB74 ‘Compliance with statutory requirements five herthing Declaration of quantity and quatity petroleum. Fiquidls or petrofeum praduets ccartiod by vessels centering harbour Decla by vessel harbour 8. A ship. tanker or vessel entering a Nigerian harbour shall comply with statutory requirements for berthing. loading and discharge of petroleum. petroleum derivatives, petroleum liquids or petroleum products. 9,—(1) The master of a vessel carrying petroleum, petroleum derivatis petroleum liquids or petroleum products shall upon entry into a prescribed port. deliver'a written declaration to the Authority, stating the — roleum (a) quantity and quality of petroleum, petroleum derivatives. p sand liquids or petroleum products contained in the vessel (b) quantity and quality of petroleum, petroleum derivatives, petroleum liquids or petroleum products intended to land at that port or any other port in Nigeria and specifying the part and type of product 2) Notwithstanding the provisions of subregakation (1) of this regulation. where the agent of a vessel delivers the written declaration to the harbour in anticipation ofa vessel's arrival, the master of the vessel may not be mast required to make any declaration. (3) A vessel shall not commence discharge of petroleum, petroleum derivatives, petroleum liquids or petroleum products without obtaining vessel clearance from the Authority at a prescribed fee. 10.—(1) Petroleum, petroleum derivatives. petroleum liquids ot petroleum products shall not be exported from Nigeria without a valid approval or export permit. (2) Crude oil, condensates, liquid petroleum products and natural gas iquiids shall not be exported from Nigeria without a valid wholesale petroleum liquid supply licence from the Authority and export permit. (3) The owner of petroleum, petroleum derivatives, petroleum liquids or petroleum products to be exported from a port shall, in addition to complying with all statutory requirements, deliver to the harbour master, before and after loading any ship, written declarations, stating, in the case of a declaration made — (co) before loading a vessel, the approximate quantity of petroleum: petroleum derivatives, petroleum liquids or petrofeum products with which that vessel is to be loaded : and (b) after loading a vessel, the quantity of petroleum, petrofeu derivatives, petroleum liquids or petroleum products with which the vessel has been loaded.11. Imported petroleum, petroleum derivatives, petroleum liquids or petroleum products shall not be discharged without — (a) sampling (h) testing of products from an approved laboratory : and (c) the issuance of a certificate of quality from the Authority. 12. A person shall not discharge or allow the eseape of petroleum, petroleum derivatives, petroleum liquids or petroleum products into the Nigerian waters 13.—(1) There shall be a payment of 0.5% of wholesale price of petroleum products sold in Nigeria to the Authority, which shall be collected from wholesale customers for — (a) imported petroleum products sold in Nigeria ; and (h) petroleum products processed and sold in Nigeria. (2) There shall be a payment of 0.5% of wholesale price of petroleum products and natural gas sold in Nigeria to the Midstream and Downstream Gas Infrastructure Fund which shall be paid by wholesale customers for — (@) imported petroleum products and natural gas sold in Nigeria ; and (4) petroleum products and natural gas processed and sol Nigeria. (3) Following the issuance of certificate of quantity or reconciliation of products sold in Nigeria, the Authority shall issue a debit note for the payment stipulated in subregulations (1) and (2) of this regulation, (4) Payments stipulated in subregulations (1) and (2) of this regulation shall be made within 21 days of issuance of the debit note by the Authority, and the Authority shall ensure collection at wholesale points. (5) Where the sum referred to in subregulations (1) and (2) of this regulation is not paid within 21 days of the issuance of debit note, a sum equal to 10% of the amount unpaid shall be added for each or part of the month after the date on which payment ought to have been made. (6) The Authority may, in addition to the penalty specified in subregulation (5) of this regulation, suspend the operations of the facility into which the product was processed, discharged, or stored until the payment is made. (7) Notwithstanding the provisions of subregulation (6) of this regulation, for subsequent transactions, the Authority shall require the producer of petroleum products and natural gas or the importer to pay the levy before allowing evacuation or vessel discharge. B15 ‘Testing of samples of petroleum, petroleum derivatives. petroleum liquids. or petroleum of discharge into waters. Payment to Midstream. and Downstream Gas Infrastructure Fund.Licences. permits and authorisations fir midstream and downstream ws operations, Parr [LV — Miosrrcam aNp Downstream Gas OPERATIONS 14. A person shall not undertake the following gas operations in the Nigerian Midstream and Downstream sector without a valid licence, permit, or authorisation issued by the Authority — (a) the establishment, design, construction, or operation of a gas processing facility, including the modification and decommissioning of such facilities : (b) the offtake of natural gas or gas products and derivatives from a gas facility ; (c) the establishment, construction, or operation of a natural gas blending facility ; (d) blending operations in a gas depot, including modification and decommissioning of such depots ; (e) third party blending operations in a gas processing plant ; (f) establishment, construction and operation of a gas transportation and distribution pipeline ; (@ the construction and operation of a gas distribution system ; (h) the operation of a gas transportation network ; (i) the virtual transportation of gas and gas derivatives : (A) liquefied petroleum gas (LPG) or compressed natural gas (CNG) bulk cylinder exchange to Micro-Distribution centres or resellers. (k) LPG or CNG truck peddling or retailing activities : ()) the establishment, construction, modification, operation, and decommissioning of a bulk gas storage facility ; (m) the establishment, construction, modification, operation, and decommissioning ofa gas refilling or refueling facility ; (n) the establishment, construction, modification, operation, and decommissioning of a CNG or LNG facility ; (0) the establishment, construction, modification, operation, and decommissioning of gas import and export terminals ; (p) the selection, design, construction, installation, and operation of metering facilities ; (q) wholesale gas supply operations ; (r) retail gas supply operations ; (s) industrial gas storage and utilisation, including gas stored and utilised by ministries, departments, and agencies of the federal, state, and local governments for their own use ; (4) industrial natural gas liquids, ineluding plant condensate, storage and utilisation, which shall include gas stored and utilised by ministries departments, and agencies of the federal, state, and local governments for their own use :(w) domestic gas aggregation ; (v) wholesale gas trading and settlement operations ; (1) coastal vessel gas operations : (x) technology adaptation for gas facilities ; and (v) importation and exportation of natural gas, natural gas liquids and gas derivatives, 15.—(1)_ Anapplication fora gas transportation and distribution pipeline licence shall be made in accordance with the Petroleum Pipeline Regulations issued by the Authority. (2) A licensee shall obtain the approval of the Authority to introduce hydrocarbons into a newly constructed or refurbished pipeline system prior to the commencement of operations on the pipeline, (3) Aholder of a gas distribution licence shall — (a) distribute and sell its natural gas without discrimination to consumers ina local distribution zone ; and (4) be entitled to sell natural gas to non-wholesale customers. (4) A gas distribution licence may — (a) include provisions for providing third-party access to the gas distribution network, gas retailer or gas distributor on its own initiative ; and (5) authorise a gas retailer access to the gas distribution network under terms and conditions agreed to by the parties. (5) A gas transportation network operator licence shall be applicable, where a pipeline is operated on a common carrier basis or a network. (6) Where a pipeline is operated on a common carrier basis, the terms for access to the gas transportation pipeline shall comply with the relevant network code. (7) Where a pipeline is operated for its own account, the facilities shall operate subject to open access conditions under these Regulations. (8) A person intending to carry out virtual transportation activities for % gas and gas derivatives shall register the mode of transportation with the Authority. (9) Where the virtual transportation referred t subregulation (8) of this regulation is operated on a common carrier basis, the terms for the operation of the natural gas transportation shall comply with the relevant provisions of these Regulations. Gas transportation and distribution,B78 LPG or 16.—(1) LPG or CNG bulk cylinder exchange to Miero-Distribution CNG bulk Centres (MDC) or resellers shat not be operated without approval from the ctlting Authority. (exchange) (2) Atruck for the peddling of LPG shall not be operated without permit ‘operations from the Authority. Bulk gas 17.—(1) A bulk gas storage facility shall not be used for export and storage import of gas without the approval of the Authority. (2) Natural gas or gas derivatives products shall not be exported from a bulk gas storage facility without valid wholesale supply licence issued by the ‘Authority, and export permit from the relevant authority. (3) Aholder of a bulk gas storage licence shall undertake the activities prescribed by the licence in compliance with section 133 of the Act. Wholesale 18.—(1) Wholesate natural eas supply shall be conducted at licenced ply wholesales points. (2) Aholder ofa wholesale gas supply licence shall be entitled to — (a) purchase natural gas or gas products .ctly from a third-party ; and (b) sell and deliver wholesale gas to wholesale customers end gas distributors at any location in Nigeria, (3) Awholesale gas supplier shall undertake the activities preseribed by the wholesale gas supply licence in compliance with the provisions of section 143 of the Act. (4) Aholder of wholesale gas supply licence shall — (a) conduct its activities in compliance with regulations on health, salty and environment issued by the Authority ; and (6) comply with customer protection measures in accordance with sections 164, 165 and 166 of the Act. (5) Awholesale gas supplier shall undertake its activities in compliance with the conditions of the licence. 19. A holder of a retail gas supply licence shall be entitled to — (a) purchase marketable natural gas directly from a producer, wholesale gas supplier or third-party on a free market basis ; and (b) sell of retail compressed or liquefied natural gas to customers at any location in Nigeria on a free market basis. Gas 20. A domestic gas aggregation licence — agoregation ve = (a) shall be for a period of two years effective from the date of the grant of the licence : andwy (b) may be renewed in accordance with the provisions of the Act and guidelines issued by the Authority, 21.—(1) Industrial gas storage and utilisation licence shall not serve as licence for the sales of industrial gas, but only for consumption by the licensee within the licenced premises. (2) Industrial gas storage tanks shall be separated from buildings or fixed sources of ignition, to — (cd) reduce the risk of fire spreading to the tank ; and () maintain safe dispersal of natural gas or gas products, (3) A gas storage tank shall be situated outdoors the accumulation of vapour at ground level. 1 a position to prevent (4) Gas storage construction and installation shall be in accordance with guidelines issued by the Authority from time to time. 22.—(1)_ From the commencement of these Regulations, a gas export and import terminal shall not be operated where the terminal — (a) is not established by an Order issued by the Authori : (A) fails to comply with the Petroleum (Transportation and Shipment) Regulations made by the Authority ; and (c) does not have a valid licence, permit and authorisation issued by the Authority (2) Natural gas and gas products shall not be evacuated from the terminal for export or supply to bulk customers in Nigeria without a valid wholesale gas supply licence issued by the Authority. (3) The loading or unloading of gas shall not be carried out without the authorisation of the Authority 23. Natural gas and gas products shall not be (a) imported without an appropriate permit issued by the Authority ; or (5) exported from Nigeria without Wholesale Gas Supplier Licence. Part V— Minsrream AxD Downstream Perrotcum Liguins OPERATIONS 24. A person shall not undertake the following petroleum liquids operations in the Nigerian midstream and downstream petroleum sector without avalid licence. permit, or authorisation issued by the Authority — (a) the establishment, design, construction, or operation of hydrocarbon processing facilities and installations including the modification and decommissioning of such facilities, which shall be in accordance with the Hydrocarbon Refining Facility Regulations issued by the Authority B79 Industrial gas storage and utilisation, Gas export and import tenninal facilities, Natural gas products import and export permit Licenses. permits and thorisations, formidstream cand downstream petroleum, Tiquids operations,B80 (b) the offtake of petroleum products : (c) the establishment, construction or operation of'a hydrocarbon liquid blending plant. waste recycling facility, waste treatment facility and bitumen processing plant : construction or operation of a lubricant refilling (a) the establishment, ity {v) blending operations in a petroleum products depot including the modification and decommissioning of such depot : (/) third party blending operations : (g) establishment, construction and operation of petroleum liquids transportation and distribution pipelines : (i) establishment, construction and operation of petroleum products distribution systems : (i) operation of petroleum liquids and petroleum products transportation networt (j) virtual transportation of petroleum liquids (A) establishment, construction, modification, operation. and decommissioning of a bulk petroleum liquids storage facility : (J) the bulk storage. sale and distribution of petroleum produets : (m) petroleum products backloading operations ; (1) establishment, construction, modification, operation, and decommissioning of petroleum products jetties : (0) wholesale petr eum liquids supply operations : (p) establishment, construction, and operation of petroleum liquids retail operations and infrastructure ; (q) establishment, construction, fabrication and operation of petroleum filling or service stations, floating filling stations, mobile containerised filling stations. operated for industrial use or storage and sales. riverine or marine filling station plants and associated infrastructure : (r) the construction or installation of small-scale industrial petroleum products storage and utilisation facilities : (s) operation of bunkering vessels and barges utilised in the stor supply of petroleum products, natural (0 establishment, construction, installation, and operation of AGO or DPK storage and sates facilities ; (u) peddling, storage and sales of AGO and DPK by trucks ; (v) industrial petroleum products storage and utilisation which shall include petroleum products stored and utilised by ministries, departments, and agencies of the federal, state and local governments for their use ; or gas and natural gas products() importation and exportation of petroleum, petroleum liquids and petroleum products and its derivatives : and (+) technology adaptation for petroleum liquids facilities, 25.—(1) Anapplication fora petroleum liquids pipeline licence shall be made in accordance with the Petroleum Pipeline Regulations issued by the Authority (2) A licensee shall obtain the approval of the Authority to introduce hydrocarbons into a newly constructed or refurbished pipeline system prior to the commencement of operations on the pipeline 26.—(1} Aperson within the petroleum liquids transportation network shall not operate without an appropriate licence issued by the Authority. ed on a common carrier basis, the development and operation of the terms for access to the petroleum liquids transportation pipeline shall comply with the relevant network code issued by the Authority (2), Where a pipeline is oper: (3) Where a pipeline is operated for its own account, the facilities shall be operated subject to, open access conditions tnsier these Regulations (4) Aholder of petroleum liquids transportation network operator licence shall be entitled to conduct activities specified in the licence, including. (a) conveying petroleum liquids through the transportation network : (5) balancing the inputs and offtakes from the transportation network ; (c) providing open access to the transportation network ; and () charging fees for the use of the transportation network. (5) The Authority — (a) shall grant one petroleum liquids transportation network operator licence for specified petroleum liquids within a geographically defined area toa single network operator ; and (1) may at its discretion, issue licences to other parties for the operation of isolated or dedicated pipelines. ~ 27.—(1)_A person intending to carry out virtual transportation of petroleum liquids activities shall register the mode of such transportation with the Authority. z (2) A mode of virtual transportation shall not be used for transporting petroleum liquids without obtaining appropriate licence, permit, or authorisation from the Authority (3) A person within the virtual transportation network shall not operate \sithout obtaining appropriate licence, permit or authorisation from the Authority: Petroleum Fiquids transportation pipeline Petroleum liquidsand petroleum product transport network operator. Virtw transportation for petroleum, liquids.B 82 Bulk, petroleum liquids storage. 28.—(1)_A person shal! not ioad or unload petroleum products in a licensed bulk storage facility without the approval of the Authority. (2) A bulk petroteum liquid storage facility shall not be used for products export and import without obtaining the approval or permit from the Authority (3) Petroleum products for export from depot facilities shatl only be sourced from refineries and petrochemical plants. (4) Petroleum products shall not be exported from a bulk petroleum liquids storage facility without a valid certificate of quantity and quality and wholesale petroleum liquids supply licence issued by the Authority. (5) A third-party petroleum product shall not be stored in a depot without a valid throughput agreement and the throughput agreement shall be submitted to the Authority. (6) Aholder of a bulk petroleum liquid storage licence shall undertake the activities stipulated in the licence in compliance with the following obligations, to— (a) establish and make available to the public at its office — (i) procedure and terms for obtaining thi services on open access basis, and (ii) method of response to the request for its services ; party access or throughput (5) procure, construct, install, operate, and maintain its facilities i safe, economical, reliable, and environmentally sustainable manner, taking into consideration strategic plans formulated by the Authority ; and (c) shut down its facilities in an emergency. to carry out maintenance or in response to curtailment directives as may be issued by the Authority. (7) Where a licensee operates for its own account, it shall — (a) grant to third-parties, the right to use or have access to capacity within its facilities to ensure competitive gas supply : (6) consult with, and obtain a written approval of the Authority, prior to any modification of technical and operational rule of practice relating to the operation in the facility ; (6) condutct its licenced activities in a non- the licence is issued on an open access basis ; (d) manage its facilities as a prudent operator and abstain from activities, which in the opinion of the Authority may prevent, restrict, or distort competition : (e) condiict its licenced activities in accordance with the Act, Midstream and Downstream Petroleum (Safety) Regulations issued by Authority and any other applicable law ; scriminatory manner, where(f) comply with the requirements for environinental protection, management, and restoration issued by the Authority and any other applicable law : and (g) mark, maintain and secure the boundaries of its facilities and associated infrastructure constructed under the terms of its licence and any other applicable law. 29. A holder of a bulk storage licence shall not conduct petroleum products backloading without obtaining the approval of the Authority. 30.—(1) A holder of petroleum product distrivutor licence shal! — (a) develop and maintain a safe, efficient, reliable, and economical service, for the distribution of petroleum products to individual customers and petroleum product retailers : (5) carry on its business in a manner that promotes competition and discourages monopoly in the retail supply of petroleum products in Nigeria: (c) conduct its licenced activities in accordance with the Act, applicable Regulations and any other applicable law: (qd) avoid undue preference or discrimination between persons or class of persons in establishing prices ; and (e) comply with customer protection measures prescribed by the Authority. (2) Apetroleum products distribution licence may — (a) include provisions for third party access to a distribution network by petroleum products retailers or distributors ; and (A) permit petroleum product retailers or distributors to access a distribution network under terms and conditions agreed to by the parties. 31.—(1) Wholesale petroleum liquids supply shall be conducted at a licenced wholesales point. (2) A producer of petroleum liquids or natural gas shall not export or deliver petroleum liquids or natural gas to bulk customers in Nigeria without a valid wholesale petroleum liquids supply licence. (3) Aholder of crude oil refining or bulk petroleum liquids licence shall not export petroleum products fiom a refinery or depot withouta valid wholesale petroleum liquids supply licence. (4) A wholesale petroleum liquids supplier shall conduct the activities under its licence in compliance with the following general obligations, to— (a) provide a reliable supply of petroleum liquids to purchasers on request ; and B83 Petroleum products backloading. Petroleum products distribution Wholesale petroleum, liquids supplyBunkering and barge vessel licence. Industrial petroleum liquids storage and utilisation, Petroleum liquids export and, import, (b) desist from activities, which in the opinion of the Authority may prevent, restrict or distort competition. (5) Aholder of wholesale petroleum liquid supply licence shall — (a) conduct the activities under its licence in accordance with Midstream and Downstream Petroleum (Safety) Regulations issued by the Authority and any other applicable law ; and () comply with customer protection measures under sections 164, 165 and 166 of the Act. (6) Awholesale petroleum liquids supplier shall conduct its activities in compliance with the covenants and conditions of the licence and with customer protection measures prescribed by the Authority. 32. Aperson shall not load or discharge petroleum liquids and petroleum products into a vessel or barge within Nigerian territorial waters, without ty. 33.—(1) Industrial storage and utilisation licence shall not be used for sales, but only for consumption by the licensee within the licenced premises. (2) Where a person contravenes the provision of subregulation (1) of this regulation, the Authority may — (a) seal the facility ; and (4) suspend, cancel or terminate the licence. (3) Industrial petroleum liquids tanks shall be separated from a building or fixed source of ignition, to— (a) reduce the risk of fire spreading to the tank : and (8) ensure safe dispersal of petroleum products. (4) Petroleum liquids storage tanks shall not be situated outdoors in a position that allows accumulation of yapour at ground level. 34.—(1) From the Commencement of these Regulations, Petroleum ids export and import terminal shall not be operated where the terminal — (a) is not established by an Order issued by the Authority ; (5) fails to comply with the Petroleum (Transportation and Shipment) Regulations made by the Authority ; and (6) does not have a valid licence, permit and authorisation issued by the Authority. (2) Petroleum liquids shall not be evacuated from the terminal for export or supply to bulk customers in Nigeria without a valid wholesale petroleum liquid supply licence issued by the Authority. __ (3) Loading or unloading of petroleum liquids shall not be carried out without the approval of the Authority.35.—(1)_A person shall not import, store, sell, or distribute petroleum. petroleum products, petroleum derivatives and petroleum products additives in Nigeria without a valid permit or licence granted by the Authority. (2) A person shall not export petroleum or petroleum products from Nigeria without a valid wholesale petroleum liquid supply licence from the Authority, and export permit from appropriate authority. (3) The Authority shall process application for export of petroleum and petroleum products in Nigeria. 36.—(1) The Authority may grant approval to an application for product certification to petroleum marketers only where the conditions for issuance of product certification are met (2) There shall be reconciliation and accounting of petroleum liquids, petroleum derivatives and petroleum products by the Authority to ensure traceable record and data of import Parr VI— MISCELLANEOUS PROVISIONS 37.—(1) A company shall not render or be engaged to render any service to the midstream and downstream petroleum sector without a permit to carry out such service issued by the Authorit (2) An application for permit shall be made to the Authority upon payment of prescribed fees, and in compliance with any other requirements prescribed by the Authority. (3) The Authority shall on receipt of an application under sub-regulation (2) of this regulation, after due consideration, issute the applicant with a permit in the relevant category. (4) A licensee or permit holder shall only engage the services of companies with appropriate and valid midstream and downstream petroleum sector service permit. (5) Alicensee or permit holder shall be responsible for ensuring that the service provider complies with the requirements stipulated by the Authority. 38. A pipeline, midstream and downstream facility, including storage facility and installations shall be subjected to annual conformity assessment in line with the requirements of the Authority. 39%—(1)_ Anew technology shall be subjected to technology qualification process before deployment into the midstream and downstream petroleum sector. (2) A new technology shall not be deployed into the midstream and downstream petroleum sector without valid approval from the Authority. B85 Petroleum fiquidsand petroleum, products Import and export permit Product certification and accounting, Midstream and downstream il and gas companies Conformity assessment. Technology adaptation,B 86 Deferment of operations. Reconniliaion, eto center and inspeet premises in case of offences. Prescribed Returns. Form of Notices for non compliance, (3) Technology qualification exercise shall include technical verification and validation of technology, laboratory evaluation of technology. and pilot implementation of qualified technology. it holder who intends to deter the operations iting not less than 12 months 40.—(I) A licensee or pen of its facility. shall notify the Authority in we before such deferment. (2) Where a licensee or permit holder deters the operations of its facility without the authorisation of the Authority, the facility shall be deemed to be operational, and subject to the terms and conditions of the licence or permit, 41, All petroleum, petroleum derivatives, petroleum liquids, or petroleum products produced or imported into the country shall be subject to reconciliation at such intervals as may be determined by the Authority. 42. An officer authorised by the Authority may at any time enter and inspect any facility or premises where the officer has reasonable grounds to suspect that the provisions of these Regulations is being contravened. 43. The Authority may by notice in writing require any person carrying out midstream and downstream petroleum operations to submit such returns and other information as may be required from time to time, in such form and at such times as may be specified in the notice. 44.—(1) An application for a licence, permit or authorisation shall be made in a manner prescribed by the Authority. (2) An application made by an affiliate of a person that has applied for or holds any other licence, permit, or authorisation from the Authority, shall disclose such relationship. (3) The Authority shall prescribe appropriate service charge for the grant of such licence, permit or authorisation. 45.—(1) Where. in the opinion of the Authority, any act or activity prohibited under these Regulations is likely to be undertaken by any person, the Authority may serve a “potential incidence of noncompliance notice” specifying the activity and directing the person to desist from such activity. (2) Where there are established contravention as specified in subregulation (1) of this regulation, and it imposes no immediate danger to personnel, environment or equipment, the Authority may — (a)_ serve an “incidence of noncompliance notice” on the person, specifying the act or activity ; (4) direct the person to whom the notice is issued to do or not to do, the specified act or activity ; and (©) specify the time frame for compliance with the notice.(3) Where the person to whom the notice or directive issued under regulation (2) of this regulation fails to comply. the Authority shall — (a) issye a “noncompliance notice” : (5) impose the sanctions under the Act : and (c) apply the administrative penalties in thes Regulations. (4) The Authority may issue a “component incident of noncompliance notice” for a specific piece of equipment or location when it is determined to be part of an unsafe situation or it is detrimental to people, property. and environment, and ean be shut-in without affecting the overall safety of the facility. (5) Where the specific piece of equipment or location referred to in sub- regulation (4) of this regulation cannot be shut-in without affecting the overall safety of the facility. the Authority may issue a “facility shut down notice”. 46.—(1) Any person who — (a) fails to obtain a licence, permit orauthorisation required under these Regulations : (b) fails to provide information required under these Regulations : (©) makes a false declaration to the Authority or wilfully furnishes information so required which is in any respect false or insufficient : or : (@)_ fails to comply with any provisions of these Regulations or any directives given or condition of any permit or licence issued under these Regulations, shall, in addition to the sanctions, fines and penalties contained in the Act, be liable to the relevant administrative penalties contained in the Second Schedule to these Regulations, and any licence, permit or authorisation granted to that person may be suspended or revoked. (2) Without prejudice to any specific sanctions provided in these Regulations, where a person contravenes the provisions of these Regulations, the Authority (qa) shall seal the premises where the activity was undertaken : * (b) may dismantle and seize the facilities by which the activities were undertaken : (c) shall confiscate and dispose of equipment or materials, including any petroleum products, employed by the person in the activity : and (d) shall impose penalties as contained in the Second Schedule to these Regulations, (3) Where no specific penalty for an offence under these Regulations is provided in the Second Schedule to these Regulations, the Authority may impose an administrative penalty not exceeding United States Dollars $1,000,000. B87B88 Powers to 47-—(1) The Authority may issue guidelines, directives, and notices ion of these Regulations. issue for the effective implemen guidelines, : (2) Where no specific provision is made in these Regulations for any part of the construction, proces: operation, storage, distribution, and maintenance of midstream and downstream facilities, subject to the approval of the Authority, practices conforming with international best standards shall be observed. Inuerpretation 48. In these Regulations — “Aer” means the Petroleum Industry Act, No. 6, 2021 ; “AGO” means Automotive Gas Oil or Diesel : “Authority” means the Nigerian Midstream and Downstream Petroleum Regulatory Authority ; ‘blending operations” means activities that involves the mixing ot blending of different proportions of gas such as propane-butane, ethane- propane-butane ete., or the mixing or blending of different proportions of petroleum liquid produets such as base oil-additives ete ; “CNG” means Compressed Natural Gas ; ‘CNG Compression Facilities” means facilities used for compression of natural gas to less than the volume it occupies at standard atmospheric pressur ‘competem person” means a person appointed, with the approval of the Authority, by the manager in writing as a reliable person capable of exercising overall general supervisory responsibility in ensuring compliance with the provisions of these Regulations ; “Crude oif” has the meaning ascribed to it in the Act ; “Critical equipment” means any equipment which if taken out of commission,may endanger the life of or lead to a mal‘unctioning or a shut- down of the facility or part of it ; “Debit Note” means a document issued by Authority as a means of formally requesting for payment of established levy ; “Distribution pipeline” means a low-pressure pipeline for the purpose of conveying natural gas or petroleum products to customers “DPK” means Dual Purpose Kerosene ; s “FPSO” means Floating, Production, Storage and Offloading ; “FSO” means Floating, Storage and Offloading ; “Gas Bulk Storage Facilities” means bulk gas storage facilities, such as gas depot, and gas wholesale storage ete. “Gas Derivatives” means products derived from the processing or blending of natural gas or gas products including urea fertilizer, methanol. hydrogen, ete. : “Gas Distribution Licence” has the meaning ascribed to it in the Act ; “Gas Distribution Network” has the meaning ascribed to it in the Act ;“Gas Distributor” has the meaning ascribed to it in the Act ; “Gas Export and Import Facilities” means facilities for importing or exporting gas, gas products or gas derivatives such as gas terminal, jetties ete. ; “Gas Processing Facilities” means facil such as GPP, GCP, GTF Plants, LNG Plants, LPG Plants, Gas Derivatives Plants etc. ; Gas Transportation and Distribution Facilities” means interconnected gas transportation and distribution facilities for movement of natural gas or gas products such pipeline, barges, truck, rails, and other means etc: “Gas Transportation Network” has the mei ‘Act “Gas Transportation Pipeline® has the meaning ascribed to it in the Act ies for processing natural gas GTL Plants, Methanol Plants, ing ascribed to it in the ‘as Retailing Operations and Infrastructure” means facilities or infrastructures for storage and sales of natural gas or gas such as gas retailing outlets, mobile skids, or other infrastructures ; “GCP* means Gas Conditioning Plants : “GPP* means Gas Processing Plant ; “GTF” means Gas to Fertilizer ; “GTL” means Gas to Liquid ; “Hydrocarbon Processing Facilities” means facilities used for processing hydrocarbon liquids and gas (excluding blending plants, emulsion Processing facilities, waste recycling plants) such as crude oil refineries, Petrochemical facilities, gas processing facilities, fertilizers, gas derivative plant, LNG, GTL and other gas processing facilities, FPSO, Floating Processing Facilities ete. : “Industrial Gas Storage and Utilisation” means industeial storage facilities for internal consumption or utilization : “Industrial Petroleum Liquid Storage and Utilisation” means industrial Storage facilities for intemal consumption or utilisation of petroleum liquids, petroleum liquid products ete. : “Licensee” has the meaning ascribed to it in the Act : “Liquefied Natural Gas” or “LNG” has the meaning ascribed to it in the Act ; “LPG” or “Liquefied Petr the Act : “Manager” means a person appointed pursuant to regulation 4 of these Regulations ; “MDG” means Micro Distribution Centre ; ‘Midstream and Downstream Gas Operations” has the meaning ascribed to it in the Act; leum Gas” has the mean ng ascribed to it in B 39B90 “Midstream and Downstream Petroleum Liquids Operations” has the meaning ascribed to it in the Act : “Minister” has the meaning ascribed to it in the Act : Mobile Plant” includes both portable and transportable plants or units ; Modification” includes expansion, rehabilitation, refurbishment, revamping. upgrading MT” means metric tonnes and is equivalent of 1000Kg : Natural gus” has the meaning ascribed to it in the Act : ‘Natural Gas Liquids” ot “NGL” has the meaning aseri the Act: ~NGN” means Nigerian Naira : ~Open Access” has the meaning ascribed to it in the Act “Other Related Products” means all other substances or materials produced in the processing of crude oil, natural gas, and intermediates : ‘Own use” means for the use of a licenced facility in the location of the facility: Peddling” means diteet distributions of LPG, DPK, and AGO to end users with not more than 10.000 litres capacity truck or its equivalent ; Petroleum” has the meaning aseribed to it in the Act ; ~Petroleum Derivatives” means products derived from the processing or blending of petroleum or petroleum products including lubricants : Petroleum Liquids” bas the meaning ascribed to it in the Act : Petroleum Liquids Export and Import” means facilities for importing or exporting petroleum liquids or petroleum products or other derivatives such as petroleum liquid or petroleum product terminal, jetties etc. Petroleum Liquids Retailing Operations and Infrastructure” means facilities or infrastructures for storage and sales of petroleum products such as petroleum products retailing outlets, mobile skids, or infrastructures ; “Petroleum Liquids Transportation and Distribution Facilities” includes interconnected hydrocarbon oil transportation and distribution facilities for movement of peiroleum liquids or petroleum products such pipeline, barges, truck, rails, and other means ; “Petroleum Products” includes materials derived from crude oil and natural gas processing such as ethane, propane, butanes, pentanes, liquefied petroleum gas, natural gas liquids, asphalts. gasoline, diesel, gas oil. jet fuels, transportation fuels, furel oils for heating and electricity generation, base oil, lubricant and other derivatives :“Petroleum Products and Natural Gas Sold in Nigeria” includes materials derived from crude oil and natural gas processing such as ethane, propane. butanes, pentanes. liquefied petroleum gas, natural gas liquids, asphalts. gasoline, Kerosene, diesel, gas oil, jet fuel, transportation fuels, electricity generation and other derivatives such as ammonia, Nitrogen, petrochemicals ity for purchase in Nige fuel oils for heating ure: rs, methanol, hydroge and precursors, emanating froma processing fac! and export Free on Board (FOB) : “Petroleum Products Ojfiake” means purchase of bulk petroleum products for the purpose of export, reselling, retailing or distribution ; “Pipeline” has the meaning ascribed to it in the Act : “Prescribed Port” means any port which the officer of the Ministry responsible for matters relating to ports may by notice in the federal gazette designate as such for the purposes of these Regulations : “Producer” means a lessee holding an interest in an oil mining lease or petroleum mining lease ora licensee holding an interest in an oil prospecting licence or a petroleum prospecting licence, where such licensee carries out temporary test production : Restricted Area” has the same meaning as the “operational area” : ‘Shore Certificate” means a quantity certification that ascertains the final discharged quantity : Sold in Nigeria” means where a petroleum product or natural gas — (a) is sold free on board in Nigeria or its territorial waters (his loaded or offloaded for sale within a wholesale point in Nigeria : or (c) transaction emanates, occurs or is concluded in Nigeria or within s territorial waters : SD” means United States Dollars ; Vessef” means ship, tanker or barge utilised in the transportation of petroleum and petroleum derivatives, petroleum liquids, liquefied natural gas and petroleum products : “Virtual Transportation” includes vessels, barges, trucks, rail wagons, ete : “Waste” means waste generated from hydrocarbon processing facility, which include residues, slop oil, sludges, rusts, ete. : “Wholesale Customer neans a class of customers with respect to (a) natural gas, the right to contract for and purchase a supply of wholesale gas, with capability to connect individually and economically toa transportation pipeline or transportation network and shall include gas distributors : and : (6) crude ol or petroleum products, a purchaser with annual capacity of 500 litres or its equivalent and above ; BOLBO Wholesale Gas” has the meaning ascribed to it in the Act ; and Wholesale Points” means the points, such as coastal depots, hinter land depots. jetties, refineries, petrochemicalsand processing plants’ including Liquefied Natural Gas processing plants, crude oil and natural gas export terminals, free-on-board products measurement points and other points of aggregation that may be determined by the Authority, where petroleum products or gas products exist or sold in bulk, Citation, 49. These Regulations may be cited as the Midstream and Downstream Petroleum Operations Regulations, 2023.FIRST SCHEDULE B93 [ Regulation 4 (m)| LICENCES, PERMITS, AUTHORISATIONS AND FEES SN LICENCE /PERMIT/APPROVAL FEES. INSTRUMENTS, PROCESSING FEES APPLICATION FEES A_| HYDROCARBON PROCESSING FACILITIES 1. | Licence to Establish (LTE) | USD 20,000 for capacities = 1,000 | —USD2.000 BPSD or its MBTU equivalent, USD 50,000 for capacities between 1,000 and 30,000BPSD or its MBTU USD 150,000 for capacities above 30,000 BPSD or its MBTU equivalent Licence to Construct (LTC) | USD 10,000 for capacities < 1,000 | —USD2,000 BPSD or its MBTU equivalent. USD 20,000 for capacities between 1,000 and 30,000 BPSD or its MBTU equivalent USD 30,000 for capacities above 30,000 BPSD or its MBTU equivalerf 3. | Licenceto Operate (LTO)New | USD 50,000 for capacities < 1,000 | UsD2,000 BPSD or its MBTU equivalent USD100.000 for capacities between 1,000 and 30,000 BPSD or its MBTU equivalent USD 150,000 for capacities > 30,000 BPSD or its MBTU equivalent. 4, [Licence to Operate (LTO) USD2,000 per 1000BPSD or its USD2,000 Renewal. MBTU equivalent, Plant Relocation Approval. | USD5,000 NIA 6. | Critical Equipment Relocation | USD 1,000 per equipment N/A Approval. 7. [Approval to Pre- Commission} USD2,000 and Commission. Was 8. [Approval 18 Evacuate] NGN I perliter NA Products from Hydrocarbon Processing] Facility. 9. [Products Off Takers Permit (for! NGN | por liter N/A Volume =/>250,000L iters),10.) Petroleum Products | USD 600 NM Evacuation via Vessel (Cargo Quantity Clearance Fee), TT] Approval to Evacuate Slop | USD 250oritsNGN equivalent [ N/A Oil from Hydrocarbon Processing Plants. _ 12, | Approval to Evacuate Gas | NGN | perlitre N/A Plant Condensate. 13.] Tank Calibration Approval | USD 1,500 pertank. N/A 14, | Tank Integrity Test Approval | USD 1,500 pertank NIA 15.| Certification of Chemicals’ | USD250 (or its NGN equivalent) | N/A Additives. per chemical 16. | Approval to Modify facility | USD 10,000 NA 17] Approval to Deploy New | USD 1,000 N/A Technology 18] Conformity Assessment | USD 5,000 for capacities = 1,000 | N/A Approval BPSD or its MBTU equivalent USD10,000 for capacities between | N/A 1,000 and 30,000 BPSD or its MBTU equivalent USD 20.000 for capacitiesabove | ya 30.000 BPSD or its MBTU equivalent B._ HYDROCARBON LIQUIDS BLENDING/LUBRICANT REFILLING/BITUMEN PROCESSING/WASTE TREATMENT/PETROLEUM-BASED ADDITIVES PRODUCTION OPERATIONS. 1._| Licence To Establish (LTE) | USD 1.500 orits NGN equivalent | N/A 2. | Approval To Construct (ATC) | USD 2,500 or its NGN equivalent | N/A 3__| Licence to Operate (LTO) USD 5 per 5,000 liters or part NGN 250,000 thereof of plant processing capacity. 4 | 3rd Party Blending | NGNS0.000 NGN0.5 per litre for Approvals Product Owner volume <= 20,000 (TPBA-PROI) NGN75,000 NGN 0.5 per litre for volume between 20,001- 100,000 (TPBA -PRO2)B95 ‘NGN 100.000 NGN 0.5 per litre for volume between 100.001- 250,000 (TPBA-PRO3) NGN 150,000 NGN 66.5 per litre for volume between 250.001-500.000 (FPBA-PROS) NGN 250,000 NGN 1 per liter for volume at 500,001 and above (TPBA- PROS) 3rd Party Bend Plant Owner Approvals NGN 75,000 NGN0.5 per liter for volume less than 20,000 (TPBA-PLO}) NGN 100,000 NGN 0.5 per liter for volume between 20,001-100,000 (TPBA-PLO2) ae NGN 0.5 per liter for NG 150.000 volume between 100.001- 250.000 (TPBA-PLO3) NGN 0.5 per liter for a volume between NGN 250.000 250,001-500,000 (TPBA-PLOY) NGN 300,000 NGN I per liter for ‘volume at 500,001 and above(TPBA-PLOS) Revalidation of LTC USDI,000 NIA Approval To Modity USD 1,000 or its NGN equivalent | N/A Plant/Critical Equipment | USD 2.500 or its NGN equivalent | N/A Relocation Approval 9_| Tank Calibration Approval _ | NGN 300,000 pertank NA 10. | Tank Integrity Test Approval | NGN 300.000 pertank NIA 11. | Lubricant Storage and Sales | NGN 200,000 NGN50,000 Licence (Lube Distributors (EDI) 12. | Lubricant Storage and Sales | NGN 150,000 NGNS50.000 Licence (Lube Distributors (E-D2))BG 13. | Lubricant Storage andSales | NGN 100,000 NGN5O.000 Licence (Lube Distributors (D3) ee i4. | Lubricant Storage and Sales | NGN75,000 NGNSO.000 Licence (Lube Distributors (E-D4)) 15. | Lubricant Storage and Sales | NGN50,000 NGN 10.000 Licence (Lube Retailers ERD) 16. | Lubricant Storage and Sales | NGN25,c00 NON 10.000 Licence (Lube Retailers (ER2) 17. ] Lubricant Storage and Sales | NGN15,000 NGN 10,000 Licence (Lube Retaiter _ 18.) Lubricant Storage NGN 10,000 NGN 10,000 Licence (Lube Ret L TERMINAL, a 1 Terminal Establishment Order USD 50,000 NA 2 | Permit to collect crude oil | USD500 or its NGN equivalent NA sample for assay analysis 3. Licence to establish crude oil | USD 50,000 USD 5,000 or petroleum products export terminal (FPSO, FSO, land terminal ete.) 4. | Licence to construct crude oil | USD 50,000 USD 5,000 or petroleum products export terminal (FPSO. FSO, land terminal etc.) 5. | Licence to Operate crude oil | USD 300,000 USD 3,000 or petroleum products export terminal (FPSO, FSO, land terminal etc.)- New 6. | Licence to operate crude oil | USD 200,000 for capacities < NA terminal (FPSO, FSO and land | 500,000 BBL. JermanaD) Renewal USD 250,000 forcapacities> | N/A 500,000 BBL and > 1,000,000 BBL USD 300,000 for capacities NIA > 1,000,000 D. "| MEASUREMEN TSYSTEM L Licence To Establish (LTE) USD 10,000 USD2,000 a metering systemBOT Licence To Construct (LTC) a metering system USD 10,600 usb 2.000 Licence To Operate a LACT/ Meter USD 10,000) NIA Calibration /Recertification of LACT USD 2500 NIA Calibration of Crude Oil Vessel Storage Tank- for vessels with pacity » 600,000BBLs ca USD 300 per tank. 6 Calibration of Crude Oil Vessel Storage Tank- for vessels with capacity between 20,001 to 600,000BBLs USD 300 per tank NIA Calibration of Crude Oil Vessel Storage Tank- for vessels with capacity 20,000 BBLs USD 150 pertank NIA Calibration of Truck NGN 5,000 per truck NIA ‘Terminal Storage Tank Calibration / Recertification (crude oil and natural gas) USD 1,500 per tank N/A 10. Coastal Vessel Tank Calibration for dead weight of Vessel between | ~ 5.000MT (Petroleum products) NGN 200.000 per vessel Coastal Vessel Tank Calibration for dead weight of Vessel between 5,001 — 20.000MT — (Petroleum products) NGN 300,000 per vessel NIA Coastal Vessel Tank Calibration fordead weight of Vessel between 20,001 and above (Petroleum Products) NGN 400,000 per vessel NIA Conformity Assessment USD 10,000) NIA TRANSPORTATION AND DI ISTRIBUTION Barging, Rail and Trucking of Crude OF (New and Renewal) USD 2,000 for Barge/Rail USD 1,000 for Truck NA Barging, Rail and Trucking of USD 1.500 for Barge/ Rail Crude Oil Supplementary. USD 500 for truckBB | PETROLEUM LIQUIDS NETWORK CODE 1. | Crude oil and condensate | USD2.500 USD 1.000 Transportation Network Operator (1) - System with Capacity < 166000 BBL'D. 2 | Crude off and condensate | USD1500 USD850 Transportation Network Operator (2) - System with Capacity 166000830000 BBL/D 3. | Crude oii and condensate | USD2,750 USD2,000 Transportation Network Operator (T3) - System with Capacity > 830000BBL/D 4. | Petroleum products Trans- | Usp400 NGNI00,000 portation Network Operator (T1)- System with Capacity < 26 million litres per day 5 | Petroleum products Trans- | yspgso NGN80.000 portation Network Operator (12) - System with Capacity between 26 million and 13. milliontitres per day 6. | Petroleum products Trans- | Usp 1000 NGN70000 portation Network Operator (13)~System with Capacity > 13 million litres per day o GAS NETWORK CODE Gas Transportation Network USD2.500 USD 1,000 Operator (1) - System with Capacity < 1 BSCF/D. Gas Transportation Network | Usp 1.500 usD850 Operator (T2) - Sy Gas Transportation Network | ygp2750 SD 2.000 Operator (T3) - System with sD, Capacity>5BSCF/D | Gas Shipper 1) - Shipping z Capacity 1 - 30 MMSCF/D. USD L000 USD 500 5. | Gas Shipper (S2) - Shipping ~ Capacity 31-200 MMscrip | USP2,000 USD 1,000 4 6. | Gas Shipper (S3) - Shipping Capacity>200 MMSCF/iD | USD 1.500 Usb isp 7. | Network Agent USD 1,000 usDs00B99 H | EXPORT AND IMPORT 1. | Export Permit (for petioteum. [USD 1.000 per application N/A petroleum products and natural gas and gas products) L 2. | import Approval for Additives | Usp 1.000 NA and other Chemicals 3._ | Coastal Vessel Licence USD 1200 NGN100,000 [Coastal Vessel Clearance NGN VEER) NIA _ Import Permit (For Petroleum. | UsD500 NGN 75.00030M1 Petroleum Products and Natural Gas and Gas Produets) _ 6. | Import Permit of Syntheticand | WGN VLR N/A Bulk Finished Lubricants 7. | Approval for Inclusion of | USDS00 NGN 75,00030MT Countries of Origin |_| PETROLEUM PRODUCTS DEPOT 1 | Licence to Establish (LTE) USD 10,000 oF ts NGN WA equivalent 2. | Approval to Construct (ATC) | USD 20,000 or its NGN NA equivalent 3. | Licence to Operate (LTO)-New | NGN3,000,000 for capacities NGN500,000 and Renewal between 0 t0 10,000,000 liters and every 5,000litres above 10,000,000 liters attracts NGN 1. 4 | Distribution or Marketing | NGN250,000 NIA Licence New or Renewal Facility Modification USD 3500 oritsNGN equivalent | NIA Approval 6. | Tank Calibration Approval | USD 800 pertank or is NON NIA equivalent 7. | Tank Integrity Test Approval | USD 800 per tank or its NGN NIA equivalent 8 | Backloading USD 5,000 or its NGN equivalent. | NA 9 | Annual Registration of | USD2,500orits NGN equivalent | NIA Petroleum Product Jetty 10. | Tank Conversion USD 2,500 o its NGN equivalent | NA for the first tank and USD 750 per tank for subsequent tanks I. | Periodic Conformity | USD 1,000 N/A AssessmentB 100 (New and Renewal) 1. ] BULK GAS STORAGE FACILITIES (GAS DEPOT) 1. | Licence to Establish USD5.000 NA 2. [ Licence to Construct USD 5.000 NaN 100.000 | 3. | Licence to Operate (New and | 0 for capacities NGN 500,000) Renewal) 3000MTT or part thereat | _ 4. | Tank Calibration Approval | _NGN 500.000 pertank NA 3 [ Hydrotest_ and tntegrity |” NGN 500,000 per tank N/A Approval 6. | Pre-Commissioning and | USD 1200 oritsNGN equivalent. | N/A Commissioning Approval 7. | LPG Offtake Permit USD 1200 or its NGN equivalent | NGN 109,000/ S000MT 8 | Category D and Micro} Notexceeding 500 kilograms Distribution Centres (MDC | (kg 000 (New/Renewal) Additional 500 kg or part thereof | Additional 500 =NGN20,000 or part thereof = NGNS.000 Exceeding 2.000 Exceeding 2,000 ke, NGN100,000 =NGN20.000 9. | Periodie Conformity USDI,000 N/A Assessment K, | BULK PETROLEUM LIQUID STORAGE (CRUDE OIL STORAGE) 1, | Licence to Establish USD 20.000 for capacities 0- USD 2.000 50,000 BBL. USD 50.000 for eapacities between 50,000 and 100,000 BPSD. USD 100.000 for capacities above 100,000 BBL 2. | Licence to Construct USD 20,000 for capacities 0~ USD 2.000 50,000 BBL USD 50,000 for capacities between 50,000and 100,000 BPSD [USD 100,000 foreapacites NA above 100,000 BBL. 3. | Licence to Operate (LTO) | USD 20,000 for capacities 0- USD 2,000 10,000 BBL USD 50,000 lor capacities between 50,000 and 100.000 BPSD USD 100-000 for capacities above 100,000 BBL.BIOL (4. | Approvat to Modify LISD 10,000 NA {5 | Tank Calibration Approval USD 1.500 per tank Nik: __| 6 | Tank Integrity Test Approval | USD 1.500 pertank NA 7. | Periodic Contormity USD 1,000 NIA Assessment L. | WHOLESALE PETROLEUM LIQUIDS SUPPLY LICENCE Wholesale Petroleum Liquids USD | per BBL. N/A (Ciudde Oil) Supply for Volumes 50.000 BBLS _| 2. | Wholesale Petroleum Liquids USD 0.85 per BBL NA (Crude Oil) Supply for Volumes 50,000 to 200,000 BBLS 3. | Wholesale Petroleum Liquids USD 0.5 per BBL NA (Crude Oil) Supply Volumes 200.000 BBLS 4. | Wholesale Petroleum Liquids | 50 Kobo per liter NA (Products) Supply M_| WHOLESALE GAS SUPPLY LICENCE 1. | Wholesale Gas Supply(GS1)__ USD 0.25/Mscfil USD 25,000 Above SOOMsctd 2 | Wholesale Gas Supply (Gs2)| USD 0.5/Msela USD 12,500 25. 500msefa 3. | Wholesale Gas Supply (GS3) | UsD5,000. USD5,000 | Below 25Msefd 4. | Gas Distributor USD2,500 USD 500 5. | Gas Aggregator USD 10,000) USD2.500 N. | INDUSTRIAL PETROLEUM PRODUCTS STORAGE AND UTILIZATION 1. | Licence to Operate Industrial | NGN 75,000.00 for the first NGN50,000 Consumer Storage Facility 20,000 liters, subsequently each additional 20,000 liters attract NGN 10,000.00 Licence to Operate Mobile | NGNT,000,000 NGN 500,000 Containerized Filling Station (For Industrial Consumer) 0. | INDUSTRIAL GAS STORAGE AND UTILIZATION 1. | Licence to Establish (LTE) NGN 100,000 NIA Licence to Construct! _NGN200,000 NA Inspection 3. | Licence To Operate (New | NGN 500,000 NGN 50,000 Renewal)B 102 P. | GAS TO TELECOM’SMALL SCALE INDUSTRIAL STORAGE AND UTILIZATION we L] Licence to Establish’ | NGN50.000 NIA Licence to Construct 2] Pressure Test NIA 3] Authorisation for Tank | \GNs0.000 WA Burial 4. Licenee To Operate (New? T neni 100,000 NIA Renewal) . _ Q PETROLEUM LIQUID RETAILING OPERATIONS AND INFRASTRUCTURE _| 1.| Licence to Establish (PE) | NGN 100,000.00 NIA. 2] Licence to Construct | NGN 200,000.00 Nes «te) 3] Licence to Operate/every | NGN $0,600.00 forthe first 20.000 | NGN'50,000 years liters, subsequently each additional 20,000 liters attract NGN 5.00.00 4. Authorisation for NGN/ 500,000 NA Modification _ 5] Storage Tank Pressure NGN/150,000 per tank NIA ‘Test Authorization 6] Storage Tank leak test NGN/50,000 per tank NIA Authorization 7.{ Storage Tank Calibration | NGN/ 150,000 per tank NIA Authorisation 8] Tank Conversion NGN/ 100,000 per tank NIA Authorisation 9. Authorisation for Tank NGN 100,000 per tank N/A Butiat 10] Authorisation To Pre- NGN50.000.00 Nia Commission and Commission “Uf Revalidation of NGN25,000.00 ‘A Authorisation! Licences 12)” Bunkering vessel/fixed NGN 10,000,000.00 NGN £.000,000.00 and motorized barge Licence 13] Licence to Operate NON 1,000,000 NGN 500,000 Mobile Containerized Filling StationB 103 R_|_ GAS PRODUCTS RETICULATION 1._| Licence to Establish (LTE) INGN 100,000 NA. 2 | Licence to Construct NGN 200,000 3 | Licence to Operate/every NGN 300,000 2 years S, | LPG PROPANE HANDLING UNIT (PHU) I Establish (LTE) | NGN 100,000 N/A _| 2 | Licence to Construct NGN200,000 NYA 3, | Licence to Operate NGN300.000 NGN25,900 T. | GAS RETAILING OPERATIONS AND INFRASTRUCTURE (LPG REFILLING PLANT. AUTOGAS PLANT. LPGADD-ON) |. ] Licence To Establish (LTE) | 0,1MT-SMT=NGN 100.000 NA S.IMT- 1OMT=NGN 200,000 NA 10.1MT-60MT=NGN 300,000 | N/A 2 | Licence to Construevinstall | 60.1-300MT=NGN 500,000 NA 0.IMT-SMT=NGN 100,000 NIA S.IMT- OMT =NGN 200,000 NIA TO.IMT-GOMT=NGN300,000 [Nia 60.1 -300MT =NGN'500,000 NIA 3_| Pressure Test Authorisation | NGN 150,000 NIA 4. | Licence to Operate (New/ | 0.1MT-SMT=NGN 100,000pa_| S100MT— Renewal)/every 2 years | S.1MT-10MT=NGN200,000pa] NGNS0.000 paand — Additional 1(OMT 10.IMT-6OMT=NGN300.000pa | part thereof 60.1-300MT=NGN 500,000 p.a__| (Above 100MT)= NGN5,000 (p.a) 8. | Authorisation for NGN 150,000 NYA Modification. 6. | Tank Burial Authorisation [NON 150,000 NA 7. | Tank Calibration NGN 100,000 VA Authorisation 8 | Licence to Operate NG 100,000 NA (LPG ADD-ON) U.|_CNG COMPRESSION FACILITIE: {| Licence to Establish (LTE) | NGN200,000 NAB 104 2, | Licence to Construct NGN 200,000 for less than NGN 20,000 100,000 SCM and NGN300,000 for above 100,000 SCM. NGN 300.000 for less than 100,000 SCM and 3. | Licence to Operate NGNS500,000 forabove 100,000 | NGN20,000 SCM vy | SMALL SCALE PLUG AND PLAY LNG 1. | Licence to Establish (LTE) | NGN 500,000 NIA 2, | Licence to Construct USD 1000 or its NGN equivalent. || NGNS0,000 per MMSCED or MMBTU. 3, | Licence to Operate USD 1000 orits NGN equivalent} NGN50,000 per MMSCFD or MMBTU w. | GENERAL FEE 1. | Due Diligence Request. NGN 100,000 NA 2, | Certificate of Quantity (COQ) | USDs00 NIA 3, | Product Import Certification | USD 500 per PIC or NGN NIA (Pic) equivalent 7 | Produet Reconciliation | USD 500 or NGN equivalent N/A Clearance 5, | Terminal Storage Tank | USD 1,500 per tank N/A Integrity (crude oil and natural gas) x. | MIDSTREAM AND DOWNSTREAM OIL AND GAS INDUSTRY SERVICE PERMITS 1. | General Purpose Category NGNSOO NGN5,000 2. [ Major Purpose Category NGN2500 NGN25.000 3. | Specialised Purpose Category | NGN7,500 NGN250,000 Note; All payments made are non-refundable and non-transferable.SECOND SCHEDULE B 105 [Regulation 46 (1), 2d) and (3)) OFFE! AND PENALTIES SN OFFENCE PENALTIES I._| Non-renewal of hydrocarbon processing facilities LTO, NGN 2,000,000.00/year 2 [Late renewal of hydrocarbon processing facilities LTO | NGN 500.000 beyond 31st of March, 3. | Product evacuation from hydrocarbon processing facility | NGN 5,000,000,00 per truck by truck or rail without Authorisation or rail wi n Product evacuation from hydrocarbon processing Facilities through a vessel without authorisation, USD 10,000.00 Vessel arrival at the loading berth without Authority clearance USD 10,000.00 6, | Product diversion by truck or rail NGN 5,000,000,00 per truck or rail wagon 7, | Product diversion from hydrocarbon processing facility | USD20,000.00 through a vessel 8. [Using Authority authorised chemical/additive above or | USD 100,000.00 below approved quantity 9. [Use of chemical unauthorised by the Authority in the | USD 100,000.00 hydrocarbon processing facilities. 10. | Operating. a blending plant or waste reeyeting plant or waste | NGN2,000,000 treatment plant or bitumen processing plant or petroleum- “ ased additives facility without licence, 11. | Late renewal of blending plant LTO. NGN300,000 12, [Procurement of critical equipment without Test NGN5,000,000 13._| Diversion of base oll NGN 3,000,000 per truck 14 | Sale of base oil from a blending plant NGN 3,000,000 per truck 15. | Construction of a blending plant/waste recycling plant) | NGN1.000,000 \waste treatment plant’bitumen processing plant/petroleum- based additives facility without LTE. 16. / Construction of a blending plant/waste recycling pland | NGN5,000,000 waste treatment plant/bitumen processing plant/petroleum- based additives facility without LTC 17._ | Third party blending by a plant owner without authorization. | NGN3,000,000 18. [Third party blending by a product owner without authorization. NGN 2,000,00019, | Operating a lubricant filling plant without LTO. NGN2.000.000 per year of operation without a licence 20. | Late renewal of lubricant filling plant LTO beyond 31st Mareh | NGN 100,000 of every year 21, | Procurement of critical equipment without Factory | NGN5.000,000 Acceptance Test for lubricant filling plant. 2. | Construction of a lubricant filling plant without valid LTE. | NGN3,000,000 3, | Construction of lubricant filling plant without valid LTC. | NGN3,000,000 24, | Modification ofa lubricant filling plant without authorization. | NGN3.000,000 25. | Operation of lubricant filling Plant without valid LTO. NGN3,000,000 26. | Distributors operating without lubricant storage and sales | NGN 200,000 per year licence. _ Retailers operating without lubricant storage and sales | NGN 100,000 per year licence. 28. | Engagement of non- Authority accredited contractors for | Not more than USD fabrication, construction, calibration, testing, or any other | 250,000 and suspension of midstream and downstream activities not more than | year 29. | Camying out midstream and downstream activities without | Not more than USD 250.000 Authority oil and gas industry service permit. and suspension of not more than | year 30, | Using storage or changing tank product or pipeline product | USD 5,000 service without authorisation. SI. | Measuring petroleum at custody transfer or sales points | USD 10,000 and seizure of with faulty or uncalibrated measuring equipment, Ullage | faulty measuring Transmitting Instrument (UTI) of metering System, instrument 32. | Measuring petroleum products with faulty or uncalibrated | NGN 100,000 and seizure of measuring equipment or Ullage Transmitting Instrument | faulty measuring (UTD, instrument 33. | Conducting a factory acceptance test or site acceptance | USD 250,000 test of any critical equipment without authorisation and witnessing by officers of the Authority. 34. | Modification, repair, or alteration of surface or underground | USD25,000 crude oil storage tanks without authorisation. 35. | Introduction of deadwoods, capillary tube or false bottom, | USD 25,000 ete in crude oil storage tanks. 36. | Construction of a depot without LTC. USD 100,000 37. | Operation of a depot without LTO. NGN 10,000,000 38. | Modification of a depot without authorisation, USD 100,000 39._| Failure to calibrate storage Tank. NGN 250,000 per tank 40. | Backloading in a depot without authorisation. USD5,000B 107 Decanting and unauthorised peddling of petroleum producls Blending in a depot without authorization. USD 100,000 in third party petroleum products distribution | NGN3,000,000 without permit 43._| Denial of Access to Authority Personnel NGNS,000,000.00 | 4. ] Assault or Harassment of Authority personnel, NGN 20,000,000and suspension or revocation oflicence 15. | Operating Industrial storage and utilisation without valid | NGN1,000,000 ence. 46. | Burial of underground storage tank without Authority | NGN 500,000 per tank authorization. 47. | Construction of retail outlet and CNG compression facilities |" NGN 10,000,000 orseizure without LTC. of the facility 48. | Declaration of false loading manifest. NGN 1,000,000 49. | Discharging product while selling in a retail outlet and refilling | NGN500,000 facilites. 50. | Absence of a well-stocked first aid box or functional truck | NGNS0,000.00 earthing cable or adequate caution signs at a Retail Outlet, 51._| Backloading of Petroleum Products in Retail Outlet NGN750.00/lter Concealing accident information for Investigation in Retail | NGN2,000,000,00 Outlet Operations, Discharging of Petroleum products without Earthing cable. | NGN 100,000.00 Discharging Petroleum products during Lightening, | _NGN200,000.00 ‘Thunderstorm or Under Direct. Failure to submit monthly sales returns, NGN 50,000.00 56. | Improper or lack of color codes of underground storage tanks’ | _NGN 10,000.00 per tank, - 5i._| Lack of Filling Station Register. NGN 20,000.00 58._[ Product Diversion, NGN 500.00/iter 59. | Selling Regulated Petroleum Products above approved pump | NGN200,000.00 price. 60._[ Non-Compliance with DRMS Directive. NGN 250,000.00 61, | Operating Without Adequate Company identification. NGN 100,000.00 @._| Product adulteration, N200/Litre NGN200.00/liter 63. | Take-over/Lease Without Approval. NGN 1,000,000.00 G1. | Failure to comply with minimum industry safety training for | NGN2,000,000 staff in facility operations. & NGN 750 per litre or its equivalent in metric tonnesB 108 GH] Product adulteration or tans-loading in depots, transit or] NGN 10,000,000 retail outlets G1._| Importation of off-spec petroleum products USD 2.000.000 68. | Failure to display price billboard at retail outlets. NGN50.000 @.| Poor housekeeping of retail outlet facilities. NGN 50,000 70, | Tndiscriminate Parking of Vehicles and Trucks Within a] NGN30.000 Facility 71. | Pump under dispensing from retail outlets NGN 100,000.00 per dispensing pump 72] Repair of vehicles within retail outlets and refiliing plants | NGN 500,000 73.| Failure to produce, upon demand. storage and sales] NGN 1,000,000 ventories and reports of midstream and downstream cilities 74, | Establishment of retail outlets and CNG comps NNGN 1,000,000 without LT 75. | Construction of retail outlets and CNG compression facility | -NGN 5,000,000 without LTC. _ 76. | Operation of retail oullets and CNG compression facility | NGN2,000,000 without LTO, . 77. | Failure to conduct Pressure Test before tank burial NGN 100,000.00 78. | Falsitication of Authority licenceipermivauthorisaions. | NGN5.000,000.00 79] Hoarding of Petroleum Product NGN T,000,000.00 80. | Late renewal of Authority retall oulletsand CNG compression | NON 100,000.00 facility licence. 81. | Late renewal of Authority depots. terminals, and jetties. | NGN 500,000 ©. | Nondisplay of Authority Licence ata Tacility NGI 50,000.00 8. | Revalidation/Correction of licence/Inputs, NGN 250,000.00 81, | Tank conversion without authorization, NGN 500,000.00 85, | Contravention of Authority's sealing Order NGN5,000,000.00 86, | Under-utilisation of import permit NGN'550,000) 87. | Non-uillisation of import permit. NGN 7,000,000 88 | Change of discharge port without approval. NGN 7,000,000 89, | Late submission of vessel arrival notification: NGN 500,000) 90. | Failure to comply with any provisions of these Reaulations | Not exceeding or any directives given or condition ofany permit or licence | USD250,000 issued under these Regulations. 91. | Selling to an unlicenced oMaker. ~~ NGNS.000,000 92, | Selling to unlicenced LPG refilling Plant. NGN2.500,000B 109 93, | Operating LPG refilling plant without LTO NGN5.000.000 94. [ Construction of LPG refilling Plant without Approval NGN 2.500.000 95, | Under dispensing of LPG refilling plant NGN 300.000 96, | Selling Yo unficenced Category D and industrial storaze | NON2000,000 and utilization facility 97] Modification of LPG refilling plant without approval NGNT000,000 98. | “Operating Autouas Plant without LTO. NGNS00.000 99. | Construction of Autogas Plant without authorisation NGN2.500.000 100. | “Under dispensing of Autogas plant NGN200,000 101. | Modification and Upgrade without approval NGN200,000 102. | Operating CNG Compression facilities without LTO. ~ 193. [ Construction of CNG facilities without LTC. 104. | Pailure to conduct recertification exercise when duc. USD 5.000 per equipment Mabr: at Abuja this 9th day of February, 2023 Enar. Farouk AHMED Authority Chief Executive Nigerian Midstream and Downstream Petroleum Regulatory Authority ExLanaory Note (This Note does not form part of these Regulations but is intended to explain its purport) ‘These Regulations seeks to regulate the operations of companies in the Nigerian midstream and downstream petroleum sector ; provide procedure for the grant of licences, permits, authorisations and payment of fees and Provide sanctions and penalties for failure to comply with these Regulations.