TERMINAL AND BULK STORAGE REGULATIONS, 2022

Draft Date: 27/10/2022

In the exercise of the powers conferred on it by Sections 132, 133, 134, 174,
175,187,188,189, 197,198,199 and 200 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”), hereby makes the
following Regulations.

ARRANGEMENT OF REGULATIONS
PART 1 – GENERAL
1. Objectives
2. Authority to Make Guidelines
3. Categorization of licences
4. Bulk Gas Storage Licence
5. Wholesale Gas Supply
6. Bulk Petroleum Liquids Storage Licence
7. Wholesale Petroleum Liquids Supply
8. Duties of Licencee and Permit Holder
9. Duties of a Manager
10. Duty to Provide Information

PART 2 – LICENCE TO ESTABLISH MIDSTREAM AND DOWNSTREAM GAS TERMINAL AND

BULK STORAGE

11. Licence to Establish Gas Terminal and Bulk Storage

PART 3 – LICENCE TO ESTABLISH MIDSTREAM AND DOWNSTREAM PETROLEUM LIQUIDS

TERMINAL AND BULK STORGE

12. Licence to Establish Petroleum Liquids Terminal and Bulk Storage

PART 4 – APPROVAL TO CONSTRUCT

13. Application for approval to construct

PART 5 – LICENCE TO OPERATE

14. Application for licence to operate

PART 6 - TERMINAL AND BULK STORAGE OPERATIONS

15. Testing of samples of petroleum liquids or its derivative at terminals and bulk
storage facilities
16. Prohibition of discharge into waters
17. Determination of quantity and quality of petroleum product
18. Petroleum or petroleum derivative import/export
19. Ship/shore difference
20. Bulk petroleum liquid storage
21. Petroleum product backloading
22. Product reconciliation and accounting
23. Point of Collection for Wholesale Price of Petroleum Products

PART 7 – MISCELLANEOUS

24. Deferment of Operations

25. Right to enter and inspect premises in case of offense
26. Prescribed returns
27. Form of application
28. General offences
29. Interpretation
30. Citation

Schedule 1
Schedule 2

PART 1- GENERAL
Objectives

1. The objectives of these Regulations are to-

(1) regulate the establishment, construction and operations of terminal and bulk
storage facilities in the Nigerian midstream and downstream petroleum
sector;

(2) provide for licences, permits, authorisations and fees for the establishment,
construction and operations of terminal and bulk storage facilities in the
Nigerian midstream and downstream petroleum sector; and

(3) provide sanctions and penalties for failure to comply with these Regulations.

Authority to Make Guidelines, Etc.

2. (1) The Authority may issue guidelines, directives, and notices for the effective
implementation of these Regulations; and

(2) Where no specific provision is made in these Regulations for any part of the
establishment, construction, operation and maintenance of terminal and bulk
storage facilities, practices conforming with international best standards shall be
observed subject to the approval of the Authority.

Categories of Licences and Approvals at Terminal and Bulk storage facilities

3. The categories of Licences and Approvals at Terminal and Bulk storage facilities are:
-
(a) Terminal establishment Order;
(b) Licence to establish a bulk storage facility;
(c) Approval to construct a bulk storage facility;
(d) Licence to operate a bulk storage facility;
(e) Wholesale petroleum liquids supply licence; and
(f) Wholesale gas supply licence;

Bulk Gas Storage Licence

4. (1) No bulk gas storage facility shall be used for the export and import of gas without
the approval of the Authority.

(2) No gas or gas derivatives shall be exported from a bulk gas storage facility
without the following authorisations issued by the Authority: -
(a) valid certificate of quantity and quality; and
(b) wholesale gas supply licence;

(3) The holder of a bulk gas storage licence shall undertake the activities
contemplated by the licence in a manner that complies with the following:
 (a) establish and make available to the public on its website or at its offices,
the-
(i) procedure and terms for obtaining third party access or
throughput services on an open access basis; and

(ii) method of response to the request for its services.

(b) construct, operate and maintain its facilities in a safe, economical, reliable,
and environmentally sustainable manner considering any strategic plans
formulated by the Authority.

(c) Shut down its facilities in emergencies; or in order to carry out maintenance
or in response to curtailment directives issued by the Authority.

(d) where the licencee operates for its own account, grant to third parties the
right to use or have access to capacity within its facilities for the purpose
of ensuring competitive gas supply.

(e) consult with and obtain from the Authority written permission, prior to any
modification of technical and operational rule of practice concerning the
operation of its facilities.

(f) conduct its licenced activities in a non-discriminatory manner where the

licence is issued on an open access basis.

(g) manage its facilities as a reasonable and prudent operator;

(h) abstain from activities, which in the opinion of the Authority may prevent,
restrict, or distort competition.

(i) conduct its licenced activities safely and reliably in compliance with any
health and safety Regulations issued by Authority.

(j) comply with the requirements for environmental protection, management,

and restoration issued by the Authority and any law in force; and

(k) mark, maintain and secure the boundaries of its facilities and associated
infrastructure constructed under the terms of its licence and any law in
force.

Wholesale Gas Supply

5. (1) All wholesale gas supply shall be conducted at licenced wholesale points.

(2) A wholesale gas supply licence authorises the Licencee to:

(a) Purchase natural gas or gas products directly from a third party; and
 (b) Sell and deliver wholesale gas to wholesale customers and gas distributors at
any location in Nigeria.

(3) A wholesale gas supplier shall undertake the activities contemplated by the
wholesale gas supply licence in a manner that complies with the following
general obligations, to-

(a) provide a reliable supply of wholesale gas to wholesale customers who have
entered into a gas purchase and sale agreement with the supplier; and

(b) abstain from activities, which in the opinion of the Authority may prevent,
restrict, or distort competition.

(4) A holder of wholesale gas supply licence shall-

(a) conduct its activities safely and reliably in compliance with any health and
safety Regulations issued by the Authority; and
(b) comply with customer protection measures in accordance with Sections
164, 165 and 166 of the Act.

(5) A wholesale gas supplier shall undertake its activities in a manner that complies
with the conditions of the licence.

Bulk Petroleum Liquids Storage Licence

6. (1) No bulk petroleum liquids storage facility shall be used for the export and import
of petroleum liquids without the approval of the Authority.

(2) No petroleum liquids shall be exported from a bulk petroleum liquids storage
facility without the following authorisations issued by the Authority: -
(a) valid certificate of quantity and quality; and
(b) wholesale petroleum liquids supply licence;

(3) The holder of a bulk petroleum liquids storage licence shall undertake the
activities contemplated by the licence in a manner that complies with the
following:

(a) establish and make available to the public on its website or at its offices,
the-
(i) procedure and terms for obtaining third party access or
throughput services on an open access basis; and

(ii) method of response to the request for its services.

(b) construct, operate and maintain its facilities in a safe, economical, reliable,
and environmentally sustainable manner considering any strategic plans
formulated by the Authority.
 (c) Shut down its facilities in emergencies; or in order to carry out maintenance
or in response to curtailment directives issued by the Authority.

(d) where the licencee operates for its own account, grant to third parties the
right to use or have access to capacity within its facilities for the purpose
of ensuring competitive gas supply.

(e) consult with and obtain from the Authority written permission, prior to any
modification of technical and operational rule of practice concerning the
operation of its facilities.

(f) conduct its licenced activities in a non-discriminatory manner where the

licence is issued on an open access basis.

(g) manage its facilities as a reasonable and prudent operator;

(h) abstain from activities, which in the opinion of the Authority may prevent,
restrict, or distort competition.

(i) conduct its licenced activities safely and reliably in compliance with any
health and safety Regulations issued by Authority.

(j) comply with the requirements for environmental protection, management,

and restoration issued by the Authority and any law in force; and

(k) mark, maintain and secure the boundaries of its facilities and associated
infrastructure constructed under the terms of its licence and any law in
force.

Wholesale Petroleum Liquids Supply

7. (1) All wholesale petroleum liquids supply shall be conducted at licenced wholesale
points.

(2) A wholesale petroleum liquids supply licence authorises the Licencee to:

(a) Purchase petroleum liquids directly from a third party; and

(b) Sell and deliver wholesale petroleum liquids to wholesale customers and
petroleum liquids distributors at any location in Nigeria.

(3) A wholesale petroleum liquids supplier shall undertake the activities

contemplated by the wholesale petroleum liquids supply licence in a manner
that complies with the following general obligations, to-
 (a) provide a reliable supply of wholesale petroleum liquids to wholesale
customers who have entered into a petroleum liquids purchase and sale
agreement with the supplier; and

(b) abstain from activities, which in the opinion of the Authority may prevent,
restrict, or distort competition.

(4) A holder of wholesale petroleum liquids supply licence shall-

(c) conduct its activities safely and reliably in compliance with any health and
safety Regulations issued by the Authority; and
(d) comply with customer protection measures in accordance with Sections
164, 165 and 166 of the Act.

(5) A wholesale petroleum liquids supplier shall undertake its activities in a manner
that complies with the conditions of the licence.

Duties of Licencee and Permit Holder

8. (1) A licencee or permit holder to whom these Regulations apply shall:

(a) appoint, in writing, Manager who shall take continual charge of all
operations authorised by the Authority.

(b) notify the Authority of every appointment made under sub-regulation (1)(a)
of this regulation and any subsequent change not later than Ten (10)
working days from such appointment or change.

(c) provide its personnel with personal protective equipment and ensure that
such equipment is always maintained in good condition.

(d) establish emergency medical procedures including an appropriately

manned and well-equipped onsite clinic, standard first aid boxes and
automated external defibrillators situated at strategic locations in the
facility, and medical evacuation procedures.

(e) provide firefighting and first aid equipment at every facility or installation in
accordance with best industry standards.

(f) ensure that all personnel including contractors undergo occupational

fitness tests and minimum industry training in a manner specified by the
Authority.

(g) provide for its personnel clear, comprehensive, safe and practical
operational procedures and guidelines.
 (h) develop good health protection and promotion programmes for its
personnel and mandate all its contractors to take similar actions.

(i) ensure that all contract documents entered into with contractors specify in
unambiguous words, the responsibilities of contractors with regards to safety
of operations.

(j) develop and maintain contingency procedures and measures for the safety
of personnel and equipment in an emergency.

(k) develop and regularly update an integrated emergency plan for the
management of hazardous events and accident situations that are likely to
occur and ensure drills are carried out periodically.

(l) Ensure that all laboratories used for petroleum and its derivatives are
accredited by and operated in a manner prescribed by the Authority.

(m) Ensure that petroleum and its derivatives operations are undertaken with
valid and appropriate licences, permits or authorisations as stipulated in the
First Schedule to these Regulations.

(2) An application for a licence, permit or authorisation to undertake any of the

operations in these Regulations shall be made in a form prescribed in guidelines
or directions issued by the Authority.

(3) Except otherwise stated, every licence issued under these Regulations shall be
valid for one year and shall expire on the 31st December of the year issued and
shall be subject to renewal upon expiration.

Provided where there is a modification of a facility with change in capacity or

product slate on or before the 31st of December, the subsisting licence shall
become invalid, and a new licence issued.

(4) Every application for renewal of a licence, permit or authorisation to operate

shall be made in a manner prescribed by the Authority and the application shall
be made not less than Thirty (30) days, or such longer period as the Authority may
decide, before the day on which the original licence expires.

(5) Every application for renewal of a wholesale petroleum liquids supply licence, or
wholesale gas supply licence shall be made in a manner prescribed by the
Authority and the application shall be made not less than Thirty (30) days, or such
longer period as the Authority may decide, before the day on which the original
licence expires.

(6) A licencee or permit holder shall obtain all requisite approvals from the Authority
prior to the commencement of any petroleum and its derivative operations.
 (7) A licencee or permit holder shall provide the open access or third-party access
requirement and tariff methodology as approved by the Authority.

Duties of a Manager

9. (1) It shall be the duty of every Manager appointed pursuant to these Regulations
to:

(a) ensure that the provisions of these Regulations, any guidelines or any other
directives from the Authority are fully complied with.

(b) appoint in writing a legal and regulatory compliance officer and report the
appointment and any subsequent change to the Authority not later than
Ten (10) working days of such appointment and any subsequent change.

(c) appoint in writing competent persons for the purpose of general supervision
of specific operations in midstream and downstream facilities including but
not limited to construction, operations, maintenance, storage, distribution,
retailing and health, safety, environment, and community matters.

(d) report to the Authority every appointment and subsequent change of a

competent person not later than Ten (10) working days of such appointment
and subsequent change.

(e) ensure that all competent persons are given appropriate training for the
efficient and safe performance of their duties.

(f) maintain a register setting out the details and responsibilities of the
competent persons, their mutual relationships and lines of reporting and
communication.

(g) provide such operational office and accommodation for Authority

personnel as may be directed by the Authority.

(h) ensure that all operational rules, procedures, and guidelines made pursuant
to these Regulations are fully understood and complied with by the licencee
or permit holder’s personnel and contractors.

(i) ensure that every operation or procedure is carried out by qualified

personnel and that adequate systems are put in place to determine and
approve qualified personnel for each operation and procedure.

(j) ensure the availability of critical spare parts for equipment in compliance
with the requirements and directives of the Authority.

(k) ensure that the facility’s landscaping, surroundings, and environment are
well maintained at all times and that the facility is kept in sound condition
 and free of items which may constitute hindrances to evacuation or escape
of personnel in event of a fire, leak or spill.

(l) Provide stock and operational report of the activities in the terminal and bulk
storage facility to the Authority.

Duty to Provide Information

10. (1)The Authority may direct a person to provide information or data on any terminal
and bulk storage operations and the person shall provide such information or data
in the prescribed manner within the timeframe stipulated in such direction.

(2) Where any accident occurs in a terminal or bulk storage facility which results in
loss of life or serious injury written notice of the accident, shall forthwith be sent
by the manager to the Authority and copied to the nearest inspector by the
manager within Twenty- Four (24) hours;

PART 2 – LICENCE TO ESTABLISH MIDSTREAM AND DOWNSTREAM GAS TERMINAL AND BULK
STORAGE

11. (1) No person shall undertake the following gas terminal and bulk gas storage 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 gas terminal and bulk
storage facilities including the modification and decommissioning of such
facilities.

(b) the establishment, design, construction, or operation of Floating gas terminal

and bulk storage facilities installations including the modification and
decommissioning of such facilities.

(c) the establishment, construction, modification, operation, and

decommissioning of any other tank farm or bulk gas storage facility.

(d) The establishment, construction, modification, operation, and

decommissioning of a bulk gas storage facility jetty.

(e) the selection, design, construction, installation, and operation of metering

facilities in gas terminals and other bulk storage facilities.

(2) The Authority, upon evaluation of submissions and payment of stipulated fees
and charges, shall grant a Licence to Establish a gas terminal and bulk storage
facility.
 (3) The Authority shall, in considering an application for a Licence to Establish a gas
terminal and bulk storage facility consider the economic case for the specific
facility including the potential demand for its use.

PART 3 – LICENCE TO ESTABLISH MIDSTREAM AND DOWNSTREAM PETROLEUM LIQUIDS

TERMINAL AND BULK STORAGE

12. (1) No person shall undertake the following petroleum liquids terminal and bulk
storage operations without a valid licence, permit, or authorisation issued by the
Authority:

(a) the establishment, design, construction, or operation of terminal and bulk

storage facilities and installations including the modification and
decommissioning of such facilities.

(b) the establishment, design, construction, or operation of floating petroleum

liquids terminal and bulk storage facilities installations including the
modification and decommissioning of such facilities.

(c) establishment, construction, modification, operation, and decommissioning

of a tank farm or any other bulk petroleum liquids storage facility.

(d) Establishment, construction, modification, operation, and decommissioning

of petroleum liquids and other bulk storage facility jetties.

(e) the selection, design, construction, installation, and operation of metering

facilities in petroleum liquids terminals and other bulk storage facilities.

(f) The Authority, upon evaluation of submissions and payment of stipulated

fees and charges, shall grant a Licence to Establish a petroleum liquids
terminal and bulk storage facility.

(g) The Authority shall, in considering an application for a Licence to Establish a

petroleum liquids terminal and bulk storage facility consider the economic
case for the specific facility including the potential demand for its use.

(h) Notwithstanding sub-regulation (1), no petroleum liquids or gas terminals

designated for export shall be established without a terminal establishment
order.

PART 4 – APPROVAL TO CONSTRUCT

Application for Approval to Construct

13. (1) No person shall construct a Gas Terminal and Bulk Storage facility without a valid
Approval to Construct issued by the Authority.
 (2) No person shall construct a petroleum liquids Terminal and Bulk Storage facility
without a valid Approval to Construct issued by the Authority.

(3) The Authority, upon evaluation of submissions and payment of stipulated fees
and charges, shall grant an Approval to Construct a terminal and bulk storage
facility.

(4) The design, construction and operation of a terminal and bulk storage facility
shall be in line with the standards and recommended practices approved by
the Authority.

(5) The Authority shall, in considering an application for approval to construct a

terminal and bulk storage facility consider the economic case for the specific
facility including the potential demand for its use.

(6) The design of a terminal and bulk storage facility shall be subjected to
technical and safety reviews.

(7) All technical and safety reviews shall be conducted with the participation of:
(a) the Authority; and
(b) third party moderators for specific safety studies.

(8) All major equipment and critical systems or units shall be subjected to integrity
inspections, functional tests and integrity tests.

(9) All integrity inspections, functional tests and integrity tests in sub-regulation (8)
of this regulation shall be conducted with the participation of the Authority.

PART 5 – LICENCE TO OPERATE

Application for licence to operate

14. (1) No person shall operate a terminal or bulk storage facility without a valid Licence
to Operate issued by the Authority.

(2) The Authority, upon evaluation of submissions, ascertainment of facility

reliability and integrity, and payment of stipulated fees and charges, shall grant
Licence to Operate a terminal or bulk storage facility.

(3) Prior to issuance of licence to operate, every terminal or bulk storage facility
shall be subjected to:-

(a) Pre-commissioning and commissioning verification checks;

(b) Physical inspection to ascertain conformance to approved design;
(c) Ascertain operating envelop, throughput, and facility reliability.
 PART 6 - TERMINAL AND BULK STORAGE OPERATIONS

Testing of Samples of Petroleum Liquids and Gas at Terminals and Bulk Storage Facilities

15. (1) No imported petroleum liquids or gas shall be discharged or unloaded without
sampling and testing from a laboratory approved by the Authority;

(2) No petroleum liquids or gas meant for export shall be loaded without sampling
and testing from a laboratory approved by the Authority

(3) Pursuant to sub-regulations (1) and (2), the Authority shall endorse the
certificate of quality prior to import or export operations.

Prohibition of Discharge into Waters

16. No petroleum liquids or gas shall be discharged or allowed to escape into the
Nigerian waters.

Determination of Quantity and Quality

17. (1) No licencee or permit holder shall operate a terminal or bulk storage facility
without:-
(a) Certified measurement system;
(b) Accredited laboratory;

(2) Pursuant to Sub-regulation (1), the Authority shall approve all measurement
systems and laboratories prior to use for determination of quantity and quality at
terminal of bulk storage facilities.

Petroleum Liquids or Gas Export and Import

18. (1) No petroleum liquids or gas shall be exported from Nigeria without valid export
permit.

(2) Pursuant to sub-regulation (1), no crude oil and condensates shall be exported from
Nigeria without valid wholesale petroleum liquid supply licence from the Authority
which shall be in addition to valid petroleum export permit.

(3) The owner of the petroleum liquids or gas to be exported from a port shall, in addition
to complying with all statutory requirements of the Nigerian Customs Service deliver to
the harbour master, before and after loading any ship, written declarations under his
signature stating:-

(a) in the case of a declaration made before loading a ship, the approximate
quantity of petroleum liquids or gas with which that ship will be loaded.
 (b) in the case of a declaration made after loading the quantity of petroleum
liquids or gas with which the ship has been loaded.

Ship/Shore Differences

19. (1) The shore figures shall continue to be regarded as the official fiscalised figures for
any lifting of petroleum or petroleum derivatives, petroleum liquids or petroleum
products, except where the measurement system is on the vessel and certified by
the Authority.

(2) Where the figure recorded on board a vessel exceed that recorded on shore
or at the loading point, the limit of tolerance allowed for these variations shall
depend on the cargo quantity expressed in long tons or metric tons and the
allowance that shall be as prescribed in the Guideline.

(3) Where the ship/shore difference recorded exceeds the above stipulated limits,
the vessel shall not be cleared to sail until a written undertaking has been given
by the vessel captain or the facility operator to arrange for Authority officers to
verify the outturn discharge of the vessel at port of discharge.

(4) Any facility or vessel owner who fails to comply with the outturn verification
process within sixty days of a demand by the Authority shall be subject to the
penalties set out in these Regulations and in addition may not be allowed to lift
petroleum liquids or petroleum products from any Nigerian facility until the
Authority is satisfied that such facility or vessel owner has complied.

(5) Any vessel which records ship/shore differences over the tolerance limit for three
consecutive liftings shall not be allowed to lift cargo from any facility in Nigeria
until satisfactory evidence has been provided to the Authority showing that
the vessel’s measurement device has been recalibrated afterwards.

Bulk Petroleum Liquids and Gas Storage

20. (1) No loading or unloading of petroleum and gas products shall be carried out
within a licenced bulk storage facility without authorisation by the Authority.

(2) No bulk petroleum liquid or Gas storage facility or terminal shall be used for
products export and import without appropriate approval or permit from the
Authority.

(3) All petroleum liquids and gas products for export from depot facilities must be
sourced only from refineries, gas processing and petrochemical plants.

(4) No petroleum and gas products shall be exported from a bulk petroleum
liquids and Gas storage facility or terminal without valid certificate of quantity and
quality and wholesale petroleum liquids and gas supply licence issued by the
Authority.
 (5) No third-party petroleum products shall be stored in a depot without valid
throughput agreement, and all such throughput agreements shall be
submitted to the Authority.

(6) The holder of a bulk petroleum liquid and gas storage licence shall undertake the
activities contemplated by the licence in a manner that best complies with the
following general obligations, to:-

(a) establish and make available to the public at its offices:

(i) procedure and terms for obtaining third party access or throughput
services on an open access basis, and
(ii) method of response to the request for its services;

(b) Procure, construct, install, operate, and maintain its facilities in a safe,
economical, reliable, and environmentally sustainable manner considering
any strategic plans formulated by the Authority.

(c) Shut down its facilities in emergencies, to carry out maintenance or in

response to curtailment directives issued by the Authority.

(7) Where the licencee operates for its own account, it shall:

(a) grant to third parties the right to use or have access to capacity within its facilities
for the purpose of ensuring competitive gas supply.

(b) Consult with and obtain from the Authority written permission, prior to any
modification of technical and operational rule of practice concerning the
operation of its facilities.

(c) Conduct its licenced activities in a non-discriminatory manner where the

licence is issued on an open access basis.

(d) Manage its facilities as a reasonable and prudent operator and abstain from
activities, which in the opinion of the Authority may prevent, restrict, or distort
competition.

(e) Conduct its licenced activities safely and reliably in compliance with any law in
force and prescribed Midstream and Downstream Petroleum (Safety)
Regulations issued by Authority or any law in force.

(f) Comply with the requirements for environmental protection, management,

and restoration issued by Authority and any law in force; and mark, maintain
and secure the boundaries of its facilities and associated infrastructure
constructed under the terms of its licence and any law in force.

Petroleum Products Backloading

21. A holder of a terminal or bulk storage licence shall not conduct petroleum products
backloading without the approval of the Authority.

Product Reconciliation and Accounting

22. (1) There shall be reconciliation and accounting of all imported petroleum products
by the Authority to ensure traceable record and data of import.

(2) There shall be reconciliation and accounting of all exported petroleum products
by the Authority to ensure traceable record and data of export.

Point of Collection for Wholesale Price of Petroleum Products

23. (1) All payments shall be collected at wholesale points by the Authority.

(2) All payments of 0.5% wholesale price of petroleum products sold in Nigeria shall be
collected at coastal and land border terminals, coastal bulk storage and land border
depots, processing and production facilities.

(3) Collection of 0.5% at stand alone inland depots and terminal not connected
via pipeline to Jetties, producing and processing facilities may not be point of
collection.

PART 7 – MISCELLANEOUS

Deferment of Operations

24. (1) Except for unforeseen circumstances, a licencee or permit holder who intends to
defer the operations of its facility, shall notify the Authority in writing not less than twelve
months before such deferment.

(2) Where a licencee or permit holder defers the operations of its facility without the
authorisation of the Authority, that facility shall be deemed to be operational,
and subject to the terms and conditions of the licence or permit.

Right to Enter and Inspect Premises in Case of Offences

25. Any 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 a
breach of these Regulations is being committed.

Prescribed Returns

26. 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.
Form of Application

27. (1) Every 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 and the charges may be on volume or mass
basis.

General Offences

28. (1) Any person who:

(a) Fails to obtain a licence, permit or authorisation required under these

Regulations;

(b) Fails to provide information required under these Regulations;

(c) Makes a false declaration to the Authority or wilfully furnishes information so

required which is in any respect false or insufficient; or

(d) 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) Where a breach of these Regulations occurs, the Authority shall:

(a) seal the premises where the activity was undertaken;

(b) dismantle and seize the facilities by which the activities were undertaken;

(c) confiscate and dispose of equipment or materials (including any petroleum

products) employed by the person in the activity;

(d) 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, the Authority may impose an administrative penalty not
exceeding USD1,000,000 (One Million United States Dollars).
Interpretation

29. In addition to the definitions contained in the Petroleum Industry Act, 2021 the
following definitions shall apply to these Midstream and Downstream Terminal
and Bulk Storage Regulations, 2022.

“Act” means the Petroleum Industry Act, 2021.

“Bulk storage” means the storage of petroleum liquids or gas in large quantity for
wholesale

"Competent 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
or parts thereof.

“Critical equipment" means any equipment which if taken out of commission will
endanger the life of or lead to a malfunctioning or a shut-down of, the facility or parts
thereof.

“Debit Note” means a document issued by Authority as a means of formally requesting

for payment of established levy.

“Gas Bulk Storage Facilities” means bulk gas storage facilities such gas depot, and gas
wholesale storage etc.

“Gas Derivatives” means products derived from the processing or blending of natural
gas or gas products including urea fertilizer, methanol, hydrogen, etc.

“Gas Export and Import Facilities” means facilities for importing or exporting gas, gas
products or gas derivatives such as gas terminal, jetties etc.

“Gas Processing Facilities” means facilities for processing natural gas such as GPP, GCP,
GTF Plants, LNG Plants, GTL Plants, Methanol Plants, LPG Plants, Gas Derivatives Plants
etc.

"Inspector" means a representative of the Authority, or any other person appointed in

writing by the Authority to undertake inspection activities on its behalf.

"Manager" means a responsible person appointed pursuant to Regulation 4 of these

Regulations.

“Modification” includes expansion, rehabilitation, refurbishment, revamping, upgrading,

“Other Related Product” means all other substances or materials produced in the
processing of crude oil, natural gas, and intermediates.
“Petroleum Derivatives” means products derived from the processing or blending of
petroleum or petroleum products including lubricants.

“Petroleum Liquids Export and Import Facility” means a facility for importing or exporting
petroleum liquids or petroleum products or other derivatives such as crude oil or
petroleum product terminal, jetties etc.

“Petroleum Products” means 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, fuel
oils for heating and electricity generation, base oil, lubricant and other derivatives.

“Petroleum Products and Natural Gas Sold in Nigeria” means 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, fuel oils for heating and electricity generation and other
derivatives such as urea fertilizers, methanol, hydrogen, ammonia, Nitrogen,
petrochemicals and precursors, etc. emanating from a processing facility for purchase
in Nigeria and export Free on Board (FOB).

“Petroleum Products Offtake” means purchase of bulk petroleum products for the
purpose of export, reselling, retailing or distribution.

"Restricted Area" has the same meaning as the "operational area".

“Shore Certificate” means a quantity certification that ascertains the final discharged
quantity.

“Terminal” has the same meaning as in the Act.

“USD” means United States Dollars.

“Vessel” means ship, tanker or barge utilised in the transportation of petroleum and
petroleum derivatives, petroleum liquids, liquefied natural gas and petroleum products.

“Wholesale Points” means the points, such as coastal depots, hinterland depots, jetties,
refineries, petrochemicals and 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 are sold in bulk.

Citation

30. These Regulations may be cited as the Midstream and Downstream Terminal and
Bulk Storage Regulations, 2022.
 SCHEDULE 1

(LICENCES, PERMITS, AUTHORISATIONS AND FEES) (ASIDE ITEM 2 AND 3 ON TABLE

INCLUDED, CONFIRM OTHER FEES AND SERVICES ARE AS IN MIDSTREAM AND
DOWNSTREAM PETROLEUM OPERATIONS REGULATIONS)

SN LICENCE /PERMIT/APPROVAL FEES

INSTRUMENTS PROCESSING FEES APPLICATION FEES

A TERMINAL
N/A
Terminal Establishment
1. Order USD 50,000
Licence to establish crude
oil, petroleum and gas
products export terminal
2. (land terminal, etc)
Licence to construct
crude oil, petroleum and
gas products export
terminal (FPSO, FSO, land
3. terminal, etc)
Permit to collect crude oil, N/A
Petroleum and Gas
Products sample for assay
4. analysis USD500 or its NGN equivalent
Licence to Operate Crude N/A
Oil, petroleum and gas
products export terminal
(FPSO, FSO, and land
5. terminal)-New USD 300,000
N/A
USD 200,000 for capacities < 500,000 BBL
Licence to operate crude N/A
USD 250,000 for capacities  500,000 BBL
oil, petroleum and gas
and  1,000,000 BBL
products terminal (FPSO,
N/A
FSO and land terminal)
6. Renewal USD 300,000 for capacities >1,000,000
B MEASUREMENT SYSTEM
 Licence To Establish (LTE) a
1 metering system USD 10,000 USD 2,000
Licence To Construct
2 (LTC) a metering system USD 10,000 USD 2,000
Licence To Operate a N/A
3 LACT/Meter USD 10,000
Calibration/Recertification N/A
4 of LACT USD 2500
Calibration of Crude Oil, N/A
petroleum and gas
products Vessel Storage
Tank- for vessels with
5 capacity > 600,000BBLs USD 500 per tank
Calibration of Crude Oil, N/A
petroleum and gas
products Vessel Storage
Tank- for vessels with
capacity between 20,001
6 to 600,000BBLs USD 300 per tank
Calibration of Crude Oil, N/A
petroleum and gas
products Vessel Storage
Tank- for vessels with
7 capacity <= 20,000 BBLs USD 150 per tank
8 Calibration Of Truck NGN 5,000 per truck N/A
Terminal Storage Tank N/A
Calibration /
Recertification (crude oil
9 and natural gas) USD 1,500 per tank
Coastal Vessel Tank N/A
Calibration for dead
weight of Vessel
between 1 – 5,000MT
10 (Petroleum products) NGN 200,000 per vessel
Coastal Vessel Tank N/A
Calibration for dead
weight of Vessel
between 5,001 –
20,000MT (Petroleum
11 products) NGN 300,000 per vessel
Coastal Vessel Tank N/A
Calibration for dead
weight of Vessel
between 20,001 and
above (Petroleum
12 Products) NGN 400,000 per vessel
C EXPORT AND IMPORT
Import Approval for
Additives and other
1 Chemicals USD 1,000 or its NGN equivalent N/A
2 Coastal Vessel Licence USD 1200 or its NGN equivalent NGN100,000
3 Coastal Vessel Clearance NGN 1/LTR N/A
IMPORT PERMIT (For
Petroleum, Petroleum
Products and Natural Gas
4 and Gas Products) USD 500 or its NGN equivalent NGN 75,000/30MT
Import Permit of Synthetic
and Bulk Finished
5 Lubricants NGN 1/LTR
Approval for Inclusion of
6 Countries of Origin USD 500 or its NGN equivalent NGN 75,000/30MT
D PETROLEUM PRODUCTS DEPOT
1 Licence To Establish (LTE) USD 10,000 or its NGN equivalent N/A
Approval To Construct N/A
2 (ATC) USD 20,000 or its NGN equivalent
NGN3,000,000 for capacities
between 0 to 10,000,000 liters and
Licence to Operate every 5,000litres above 10,000,000
3 (LTO)-New and Renewal liters attracts NGN 1. NGN500,000
N/A
Distribution or Marketing
4 Licence New or Renewal NGN 250,000
Facility Modification N/A
5 Approval USD 3500 or its NGN equivalent
N/A
6 Tank Calibration Approval USD 800 per tank or its NGN equivalent
N/A
7 Tank Integrity Test Approval USD 800 per tank or its NGN equivalent
8 Backloading USD 5,000 or its NGN equivalent N/A
N/A
Annual Registration of
9 Petroleum Product Jetty USD 2,500 or its NGN equivalent
USD 2,500 or its NGN equivalent for N/A
the first tank and USD 750 per tank
10 Tank Conversion for subsequent tanks

E BULK GAS STORAGE FACILITIES (GAS DEPOT)

1 Licence to Establish USD 5,000 N/A
2 Licence to Construct USD 5,000 NGN 100,000
 Licence to Operate USD2,500 for capacities <= 3000MT
3 (New and Renewal) or part thereof NGN 500,000
4 Tank Calibration Approval NGN 500,000 per tank N/A
Hydrotest and Integrity N/A
5 Approval NGN 500,000 per tank
N/A
Pre-Commissioning and
6 Commissioning Approval USD 1200 or its NGN equivalent
7 LPG Offtake Permit USD 1200 or its NGN equivalent
NGN 100,000/ 5000MT
Not exceeding 500
Not exceeding 500 kilograms (kg) = kilograms (kg) =
NGN 15,000 NGN5,000
Category D and Micro Additional 500 kg or
Distribution Centres Additional 500 kg or part thereof = part thereof =
8 (MDC (New/Renewal) NGN 20,000 NGN5,000
Exceeding 2,000 kg
Exceeding 2,000 kg = NGN100,000 = NGN 20,000

F BULK PETROLEUM LIQUID STORAGE (CRUDE OIL STORAGE)

USD 20,000 for capacities 0 -50,000 BBL

USD 50,000 for capacities between

50,000 and 100,000 BPSD
USD 100,000 for capacities above
1 Licence to Establish 100,000 BBL USD 2,000

USD 20,000 for capacities 0 - 50,000 BBL

USD 50,000 for capacities between

50,000 and 100,000 BPSD USD 2,000
USD 100,000 for capacities above
2 Licence To Construct 100,000 BBL N/A

USD 20,000 for capacities 0 - 50,000 BBL

Licence To Operate
(LTO) (New and USD 50,000 for capacities between
3 Renewal) 50,000 and 100,000 BPSD USD 2,000
 USD 100,000 for capacities above 100,000
BBL
4 Approval To Modify USD 10,000 N/A

5 Tank Calibration Approval USD 1,500 per tank N/A

6 Tank Integrity Test Approval USD 1,500 per tank N/A

G WHOLESALE PETROLEUM LIQUIDS SUPPLY LICENCE

Wholesale Petroleum N/A
Liquids (Crude Oil) Supply
1 for Volumes < 50,000 BBLS USD 1 per BBL
Wholesale Petroleum N/A
Liquids (Crude Oil) Supply
for Volumes >=50,000 to
2 200,000 BBLS USD 0.85 per BBL
Wholesale Petroleum Liquids N/A
(Crude Oil) Supply Volumes
3 >200,000 BBLS USD 0.5 per BBL
N/A
Wholesale Petroleum
4 Liquids (Products) Supply 50 Kobo per liter

H WHOLESALE GAS SUPPLY LICENCE

Wholesale Gas Supply
1 (GS1) Above 500Mscfd USD 0.25/Mscfd USD 25,000
Wholesale Gas Supply
2 (Gs2) 25- 500mscfd USD 0.5/Mscfd USD 12,500
Wholesale Gas Supply
3 (GS3) Below 25Mscfd USD 5,000 USD 5,000

4 Gas Distributor USD 2,500 USD 500

5 Gas Aggregator USD 10,000 USD 2,500

NOTE:

(1) All payments in USD can be made in its NGN equivalent using the prevailing
Central Bank of Nigeria rate.

(2) All payments made are non-refundable and non-transferable.

 SCHEDULE 2

(OFFENCES AND PENALTIES)

S/N OFFENCE PENALTY

Engagement of non- Authority
accredited contractors for fabrication,
Not more than USD 250,000 and
28 construction, calibration, testing, or
suspension of not more than 1 year
any other midstream and downstream
activities.

Carrying out midstream and

downstream activities without Not more than USD 250,000 and
29
Authority oil and gas industry service suspension of not more than 1 year
permit

Using storage or changing tank product

30 or pipeline product service without USD 5,000
authorisation.

Measuring petroleum at custody transfer

or sales points with faulty or uncalibrated
USD 10,000 and seizure of faulty
31 measuring equipment, Ullage
measuring instrument
Transmitting Instrument (UTI) or metering
System

Measuring petroleum products with

faulty or uncalibrated measuring NGN 100,000 and seizure of faulty
32
equipment or Ullage Transmitting measuring instrument
Instrument (UTI)

Conducting a factory acceptance test

or site acceptance test of any critical
33 USD 250,000
equipment without authorisation and
witnessing by officers of the Authority

Modification, repair, or alteration of

34 surface or underground crude oil USD 25,000
storage tanks without authorisation.

Introduction of deadwoods, capillary

35 tube or false bottom, etc in crude oil USD 25,000
storage tanks
36 Construction of a depot without LTC USD 100,000

37 Operation of a depot without LTO NGN 10,000,000

Modification of a depot without

38 USD 100,000
authorization

39 Failure to calibrate storage Tank NGN 250,000 per tank

Backloading in a depot without

40 USD5,000
authorization

Blending in a depot without

41 USD 100,000
authorization

Engaging in third party petroleum

42 NGN 3,000,000
products distribution without permit

43 Denial of Access to Authority Personnel NGN5,000,000.00

Assault or Harassment of Authority NGN 20,000,000 and suspension or

44
personnel revocation of licence

45 Declaration of false loading manifest NGN 1,000,000

Late renewal of Authority depots,

81 NGN 500,000
terminals, and jetties
Non-display of Authority Licence at a
82 NGN 50,000.00
facility

Revalidation/Correction of
83 NGN 250,000.00
licence/Inputs

84 Tank conversion without authorisation NGN 500,000.00

Contravention of Authority’s sealing

85 NGN 5,000,000.00
Order
86 Under-utilisation of import permit NGN 550,000

87 Non-utilisation of import permit NGN 1,000,000

Change of discharge port without

88 NGN 1,000,000
approval

89 Late submission of vessel arrival notification NGN 500,000

Failure to comply with any provisions of

these Regulations or any directives
90 Not exceeding USD250,000
given or condition of any permit or
licence issued under these Regulations

91 Selling to an unlicenced offtaker NGN5,000,000

All payments in USD can be made in its NGN equivalent using the prevailing Central
Bank of Nigeria rate.

Made at Abuja this …………………. day of ……………. 2022

……………………………………………………
Engr. Farouk A. Ahmad
Authority Chief Executive
Nigerian Midstream and Downstream Petroleum Regulatory Authority