Hydrocarbon Processing and Refining Facility Regulations

HYDROCARBON PROCESSING AND REFINING FACILITIES REGULATIONS,
2022
Draft: October 27, 2022
In exercise of the powers conferred on it by Section 125, 174 and 183 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 (“Authority”), hereby makes
these Regulations: -
ARRANGEMENT OF REGULATIONS
PART 1- OBJECTIVES AND GENERAL PROVISIONS
1. Objectives
2. Authority to make Guidelines etc.
3. Forms for application for licence to establish, approval to construct and licence
to operate a refining facility, etc.
PART 2 – LICENCE TO ESTABLISH A HYDROCARBON REFINING FACILITY
4. Licence to establish
5. Crude oil refining
6. Natural gas processing
7. Petrochemical plants
8. Requirements for licence to establish
PART 3 – APPROVAL TO CONSTRUCT
9. Application for approval to construct

10. Requirements for approval to construct
11. Commercial Viability of Hydrocarbon Refining Facilities
12. Standards for design, construction and inspection of petroleum refining facilities
13. Engineering and Technical Studies/Review (Design Reviews, Safety Studies etc.)
14. Design optimization and modification
15. Environmental and Safety consideration
16. Technology adaptation
17. Fabrication and Inspection
18. Construction of Hydrocarbon Refining Plants
19. Construction and spacing of tanks.
20. Sparing Philosophy
21. Functional and Integrity Tests
22. Greenfield Conformity Assessment
23. Modification of existing hydrocarbon refining facility
PART 4 – COMMISSIONING OF REFINING FACILITY
24. Pre-commissioning and Readiness for Start-up

25. Requirements for commissioning
26. Plant Commissioning
PART 5 – LICENCE TO OPERATE
27. Application for licence to operate
PART 6 – PLANT OPERATIONS
28. Conformity Assessment

29. Observance of good refining practices.
30. Hydrocarbon Refining Facility Areas to Constitute Restricted Areas
31. Erection of fences
32. Evacuation of refined products, Gas Products, petrochemicals, precursors and
derivatives
33. Import and export permit for refined products, petrochemicals, precursors and
derivatives
34. Maintenance Management System
35. Spillage in the hydrocarbon refining facility
36. Hydrocarbon Refining Facility effluent and drainage disposal
37. Disposal of residues, sludges, rusts, etc.
38. Warning notices.
39. Observance of fire and safety regulations
40. Safety clothing and appliances.
41. Instructions on emergency procedures.
42. Protection against dangerous parts of machinery.
43. Fires and explosions
44. Medical facilities and first aid services.
45. Training of workers.
46. Storage tanks.
47. Entry into storage tanks, etc.
48. Operational safeguards in relation to storage tanks.
49. Storage tanks to be calibrated.
50. Storage of liquified petroleum gases.
51. Disruption to continuous operations.
52. Abandonment, replacements and relocation of any component or plant.
53. Pressure vessels.
54. Non pressure vessels.
55. Handling and blending of dangerous additives and chemicals
56. Storage capacities
57. Spare parts
58. Analysis of imported stock for use in the refining facility
59. Samples and specimens
60. Samples and specimens: control of export
61. Office and working accommodation
PART 7 - REPORTS
62. Reporting of accidents.

63. Inquiries into accidents.
64. Monthly statements on production, etc.
65. Annual report.
66. Books, records, etc. to be made available to the Authority.
67. Special reports.
PART 8 – OPERATIONS SUSTAINABILITY
68. Greenhouse gas management

69. Flare management
70. Sustainable water management
71. Crude Supply Guarantee and payment for Crude Oil in Nigerian Naira
PART 9 – DECOMMISSIONING AND ABANDONMENT
72. Decommissioning and abandonment of hydrocarbon refining facility
PART 10 – OFFENCES AND FEES
73. Offences
74. Fees.
PART 11- SUPPLEMENTAL PROVISIONS

75. Interpretation.
76. Short title.
Schedules.
PART 1- OBJECTIVES AND GENERAL PROVISIONS
Objectives
1. The objectives of these regulations are to:
(a) regulate the operations of hydrocarbons refining facilities.

(b) provide for licences, permits, authorisations and fees for such petroleum
operations
(c) provide sanctions and penalties for failure to comply with these
Regulations.
Authority to make Guidelines etc.
2. The Authority may issue guidelines, directives, and notices for the effective
implementation of these Regulations.
Forms for application for Licence to Establish (LTE), Approval to Construct (ATC) And
Licence to Operate (LTO) a Hydrocarbon Refining Facility, etc.
3. (1) Every application for a licence, permit or approval shall be made in a

manner prescribed by the Authority.
(2) Application for a licence to establish, approval to construct and licence to

operate a hydrocarbon refining facility shall be made to the Authority and
shall be in a format using Forms A, B and C in the 1st Schedule to these
Regulations.
(3) No modification, decommissioning or abandonment of a Hydrocarbon

Refining Facility shall be undertaken without appropriate approval from the
Authority.
(4) Where an affiliate of a company which holds any other licence, permit or
approval from the Authority, applies for licence or approval under these
Regulations, such affiliate shall disclose the relationship to the Authority.
(5) The Authority shall prescribe appropriate application fee and service charge
for the grant of such licence, permit or authorisation and the charges shall be
on volume or mass basis.
(6) Every licence to operate a hydrocarbon refining plant or permit issued for
operations by the Authority shall expire on the 31st of 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,

on or before the 31st of December, the subsisting licence shall become invalid
and a new licence issued.
(7) Every such application shall be accompanied by a detailed study of the

project and any other documents that may be required by the Authority and
payment of the prescribed fee which shall not be refundable.
(8) Subject to payment of prescribed fees and charges, evaluations of

submissions and conducting pre-licence inspection/conformity assessment,
the Authority may renew licence to operate of all hydrocarbon refining plants.
(9) Every application for renewal of a 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.
(10) The Authority may revalidate or extend a licence to establish or approval

construct a hydrocarbon refining plant upon payment of prescribed fees by
the licencee and the evaluation of the basis for the application for the
revalidation and extension of the licence.
PART 2 – LICENCE TO ESTABLISH A HYDROCARBON REFINING FACILITY
Licence to Establish
4. No person shall establish a hydrocarbon refining facility without a valid licence

issued by the Authority.
Crude Oil Refining
5. (1) All applications for a licence to establish a crude oil refining plant shall be
made to the Authority.
(2) Activities of a licenced crude oil refinery shall be conducted safely and
reliably in compliance with guidelines issued by the Authority.
(3) The Authority, upon evaluation of submissions and payment of stipulated fees
and charges, shall make recommendations to the Minister for grant of a
licence to establish a crude oil refinery.
(4) The Licencee shall avoid any act or omission that may affect the compatibility
of the refinery with any facility or network that is likely to prejudice the public
interest or the integrity of network operations.
(5) The crude oil refinery shall produce petroleum products to a quality suitable
for the transportation system as specified in the licence or quality suitable for
use in accordance with the specifications approved by the Authority.
(6) The Licencee shall:
(a) abstain from activities which in the opinion of the Authority may prevent,
restrict, or distort competition.
(b) comply with any conditions precedent or other conditions as the Authority
may prescribe.
(c) conduct its licenced activities safely and reliably in compliance with any
law in force and prescribed health and safety related regulations,
standards and operating procedures issued under the Act.
(d) have regard to the effect of its licenced activities on the environment and
comply with the requirements for environmental protection,
management, and restoration under the Act.
(e) mark, maintain and secure the boundaries of its facilities and associated
infrastructure constructed under the terms of its licence and any law in
force; and comply with any condition precedent or other conditions as
the Authority may prescribe.
Natural Gas Processing
6. (1) All applications for a licence to establish a natural gas conditioning or refining
plant shall be made to the Authority.
(2) Activities of a licenced natural gas conditioning or refining plant shall be

conducted safely and reliably in compliance with the guidelines issued by the
Authority.
(3) The Authority, upon evaluation of submissions and payment of stipulated

fees and charges, shall grant a licence to establish a natural gas conditioning or
refining plant.
(4) The operator of a natural gas conditioning or refining plant shall avoid any
act or omission that may affect the compatibility of the plant with any facility or
network that is likely to prejudice the public interest or the integrity of network
operations.
(5) The natural gas conditioning or refining plant shall produce liquefied natural
gas, natural gas liquids or other petroleum products to a quality suitable for the
transportation system as specified in the licence or quality suitable for use in
accordance with the specifications approved by the Authority.
(6) The operator shall:
may prescribe.
standards and operating procedure issued under the Act;
Petrochemical Plants
7. (1) All applications for a licence to establish a petrochemical plant shall be

made to the Authority.
(2) Activities of a licenced petrochemical plant shall be conducted safely and

reliably in compliance with the guidelines issued by the Authority.
and charges, shall grant a licence to establish a petrochemical plant.
(4) The operator of a petrochemical plant shall avoid any act or omission that
may affect the compatibility of the plant with any facility or network that is likely
to prejudice the public interest or the integrity of network operations.
(5) The petrochemical plant shall produce petrochemical products, precursors,

and derivatives to a quality suitable for the products evacuation or
transportation system as specified in the licence or quality suitable for use in
accordance with the specifications approved by the Authority.
(6) The Licencee shall:
may prescribe.
standards and operating procedure issued under the Act;
Requirements For Licence to Establish
8. Pursuant to Regulations 5 (3), 6 (3) and 7 (3) of these regulations, all applications
for licence to establish shall be accompanied by:
(1) Economic and financial analysis

(2) Feasibility and definition studies
(3) Project implementation strategy
(4) Technical narratives and schematics covering facility configuration, materials
supply and evacuation, and operability.
PART 3 – APPROVAL TO CONSTRUCT
Application For Approval to Construct
9. (1) No person shall construct a hydrocarbon refining facility without a valid

Approval to Construct issued by the Authority.
and charges, shall make recommendations to the Minister for grant of an
Approval to Construct a crude oil refinery.
and charges, shall grant an Approval to Construct a natural gas conditioning
and refining facility.
and charges, shall grant an Approval to Construct a petrochemical plant.
Requirements For Approval to Construct
10. Pursuant to Regulations 9(2) of these regulations, all applications for Approval to
Construct shall be accompanied by:
(a) Investment analysis and economic case studies;

(b) Engineering design dossier;
(c) Project quality plan/Inspections and test plans; and
(d) Report of Engineering and Technical safety reviews.
Commercial Viability of Hydrocarbon Refining Facilities
11. The application in Regulation 10 of these regulations, shall be subjected to

economic viability analysis by the Authority.
Standards For Design, Construction and Inspection of Hydrocarbon Refining Facilities
12. The design and construction of a hydrocarbon refining facility shall be in line with
the standards and recommended practices approved by the Authority.
Engineering and Technical Studies/Review
13. (1) The engineering design of a hydrocarbon refining facility shall be subjected
to technical and safety reviews.
(2) The technical and safety reviews shall be undertaken in the presence of the
Authority, Licencee and an independent assessor appointed by the Licencee
for that purpose.
Design Optimisation or Modification
14. A Licencee shall obtain the approval of the Authority prior to any optimisation
or modification of the design of a hydrocarbon refining facility.
Environmental and Safety Considerations
15. The design of a hydrocarbon refining facility shall conform with the
environmental and safety regulations, guidelines, directives or notices issued by
the Authority.
Technology Adaptation
16. (1) All new technologies to be implemented in the development or modification
of a hydrocarbon refining facility shall be subject to technology qualification by
the Authority before deployment.
(2) No new technology shall be deployed into hydrocarbon refining facility

without valid approval from the Authority.
(3) All technology qualification processes shall include technical verification and
validation of technology, laboratory evaluation of technology, and pilot
implementation of qualified technology.
Fabrication and Inspection
17. (1) The Authority may, prior to the commencement of fabrication of major
equipment and critical systems, conduct an inspection of the fabrication yard.
(2) Notwithstanding Regulation 17 (1) of these regulations, the Authority shall

participate in the conduct dimensional checks and functionality assessment of
major equipment and critical systems of a hydrocarbon refining facility.
Construction of Hydrocarbon Refining Plants
18. Notwithstanding Regulation 10 of these regulations, before any hydrocarbon

refining plant, installation or related facility under these Regulations is
constructed or assembled for any purpose, the holder of a licence to establish
shall forward to the Authority for approval:
(a) All approved for construction drawings details regarding the plant design
specifications, utility and offsite drawing,
(b) Detailed engineering HAZOP reports highlighting the critical
recommendations,
(c) Location of the plant,
(d) Construction execution plan leading to pre-commissioning,
(e) Design safety case
(f) Environmental management plan
(g) Health management plan,
(h) Waste management plan,
(i) Quality assurance and quality control (QA/QC) plan,
(j) And any other documents that may be required by the authority and obtain
approval before commencement of the project.
Construction And Spacing of Tanks.
19. (1) Tanks of capacity less than 500 water tons shall be sited and placed in
accordance with safety considerations. Due allowance shall be made for the
nature of the product stored and its volume and the characteristics of the
surrounding area.
(2) If the storage relates to class "A" or class "B" petroleum-
(a) in normal design fixed roof tanks, the minimum distance-
i. between the perimeter of the tank and the outer body of the
installation shall be the diameter of the tank or 25 metres,
whichever is the greater;
ii. between tank and tank shall be the diameter of the smaller, or
fifteen metres, whichever is less;
(b) in floating roof tanks, the minimum distance-

i between the perimeter of the tank and boundary of the
installation; or
ii between tank and tank shall be not less than fifteen metres; and
(c) for the purposes of sub-regulations 2 (a) and 2 (b) of this regulation,
small tanks shall be considered as one tank if sited together in groups not
exceeding a combined capacity of 3,000 water tons, and spaced
according to the requirements of the locality and of operational needs.
(3) If the storage relates to liquefied petroleum gases, the minimum distance-
(a) from the boundary of the installation; or
(b) from open fires; or
(c) from class "A" and class "B" petroleum, shall not be less than forty-five
metres.
(4) A list of tanks, their gross capacities and their use shall be forwarded by the
manager to the Authority. If for any reason other than that of a production
emergency a tank is to be altered in use, for a purpose different from that for
which it was designed, the Authority shall be informed before such alteration is
effected, and if for any reason whatsoever a tank is to be altered in
construction, the approval of the Authority shall be obtained before such
alteration is effected.
Sparing Philosophy
20. (1) The sparing philosophy of all major equipment and critical systems of a
hydrocarbon refining facility shall be submitted to the Authority for approval.
(2) The sparing philosophy must provide for redundancies, ease of maintenance,
and continuous operation.
Functional and Integrity Tests
20. (1) No person shall operate a hydrocarbon refining facility without a valid
Licence to Operate issued by the Authority.
(2) The Authority, upon evaluation of submissions, ascertainment of plant

reliability and operating envelope, and payment of stipulated fees and
charges, shall make recommendations to the Minister for grant Licence to
Operate a crude oil refinery.

charges, shall grant Licence to Operate a natural conditioning and refining
facility.

charges, shall grant Licence to Operate a petrochemical plant.
Greenfield Conformity Assessment
21. Notwithstanding Regulation 20 of these regulations, the Authority shall conduct

greenfield conformity assessment of all hydrocarbon refining facilities prior to
commencement of operations.
Modification of Existing Hydrocarbon Refining Facility
22. (1) No changes shall be made in the installations of a licensed hydrocarbon

refining facility except with the prior approval in writing to the Authority and
upon payment of the prescribed fee.
(2) The modification in Regulation 22 (1) of these regulations shall include but
not be limited to change in capacity, product slate or any other major change
in configuration to improve plant efficiency, safety and environmental
sustainability.
PART 4 – COMMISSIONING OF REFINING FACILITY
Pre-commissioning and Readiness for Start-up
23. Prior to pre-commissioning and commissioning of hydrocarbon refining facilities,

the Authority shall verify the extent of mechanical completion and subject the
facilities to pre-startup safety audit.
Requirements for commissioning
24. Upon payment of prescribed application fees and service charge, appointment
of a qualified refinery/plant manager, all applications for approval to introduce
hydrocarbon or commission a hydrocarbon refining facility shall be
accompanied by:
(a) Complete equipment report on all major equipment and critical systems;
(b) Evidence of availability of adequate commissioning and operating spare
parts, catalysts, chemicals, additives and other operating consumables;
(c) As-built technical documentation and schematics for the entire
hydrocarbon refining facility; and
(d) Approved operating manuals, maintenance manuals, and mechanical
catalogs.
Plant Commissioning
25. The Authority shall conduct commissioning inspection of the entire hydrocarbon
refining facility, prior to commencement of operation.
PART 5 – LICENCE TO OPERATE
Application for licence to operate
26. (1) No person shall operate a hydrocarbon refining facility without a valid
Licence to Operate issued by the Authority.

charges, shall make recommendations to the Minister for grant of a Licence to
Operate a crude oil refinery.

charges, shall grant of a Licence to Operate a natural gas conditioning and
refining facility.
charges, shall grant of a Licence to Operate a petrochemical plant.
PART 6 – PLANT OPERATIONS
Conformity Assessment
27. All hydrocarbon refining facilities shall, prior to renewal of Licence to Operate,
be subjected to annual conformity assessment in line with the requirements of
the Authority.
Observance of Good Refining Practices.
28. Where no specific provision is made by these Regulations for any aspect of the
construction, operation and maintenance of a hydrocarbon refining facility,
practices conforming with international standards shall be observed subject to
the approval of the Authority.
Hydrocarbon Refining Facility Areas to Constitute Restricted Areas
29. (1) All hydrocarbon refining facility areas shall constitute restricted areas, the
boundaries of which shall be clearly defined as specified in Regulation 8 of these
Regulations.
(2) Only persons authorized by the manager shall be admitted into such
restricted areas.
Erection Of Fences
30. (1) Adequate and secure boundary fencing shall be provided around all
restricted areas, tank farms, products' off-take facilities and the jetty; and access
to these areas shall be through recognized entrances so controlled as to prevent
the entry of unauthorized persons and vehicles.
(2) All vehicles shall be confined to approved routes within the hydrocarbon
refining facility area except in regard to special cases where specific vehicles
are authorized by the manager to deviate from such approved routes.
Evacuation Of Refined Products, Gas Products, Petrochemicals, Precursors and

Derivatives
31. (1) No petroleum products shall be evacuated from a crude oil refining plant
without an appropriate authorisation from the Authority
(2) No petrochemical products, precursors or derivatives shall be evacuated
from petrochemical plant without an appropriate authorisation from the
Authority.
(3) No natural gas or gas products shall be evacuated from a natural gas
processing, conditioning, treatment, and refining plant without an appropriate
authorisation from the Authority.
Import And Export Permit for Refined Products, Petrochemicals, Precursors and
Derivatives
32. (1) No person shall import petroleum liquids, or natural gas for processing in
Nigeria without valid permit or licence granted by the Authority.
(2) No petroleum products, gas products, petrochemicals or other derivatives

shall be exported from a hydrocarbon refining facility without valid export permit
from the appropriate authority.
(3) Notwithstanding Regulation 32(2), no petroleum products shall be exported

from the crude oil refining facility without a valid wholesale petroleum liquid
supply licence from the Authority.
(4) Notwithstanding Regulation 32(2), no natural gas or gas products shall be

exported from the natural gas conditioning and refining facility without a valid
wholesale petroleum liquid supply licence from the Authority.
(5) No person shall import petroleum-based additives in Nigeria for use in any
hydrocarbon refining plant without a permit from the Authority.
Maintenance Management
33. Every hydrocarbon refining facility shall have a maintenance management

system which must be accessible to the Authority on demand.
Spillage In the Hydrocarbon Refining Facility
34. Any spillage of crude, products or chemicals inside the hydrocarbon refining
facility shall be reported in line with relevant regulations issued by the Authority.
Hydrocarbon Refining Facility Effluent and Drainage Disposal
35. (1) The manager shall ensure that drainage and disposal of refining effluent and
drainage water shall conform to best oil and gas industry standards and
practices, the specification of the effluent and the mode of disposal shall be in
line with relevant regulations issued by the Authority.
(2) The manager shall adopt all practicable precautions including the provision
of up-to-date equipment in line with best oil and gas industry practices and
in compliance with the requirements of the Authority from time to time, to
prevent the pollution of the environment by petroleum or petroleum products;
and where such pollution occurs the manager shall take prompt steps to
control and, if possible, end it.
(3) The Authority may withdraw samples of any effluent and drainage water at
any time for analysis and if the result of such analysis reveals that the
approved specifications have not been complied with the manager shall be
liable to a fine of USD$10,000 (Ten Thousand United States Dollars).
Disposal of Residues, Sludges, Rusts, Etc.
36. Residues, sludges, rusts and similar petroleum wastes shall be treated and
disposed in line with relevant regulations issued by the Authority.
Warning Notices.
37. (1) No Smoking" signs shall be conspicuously displayed in restricted areas.
(2) Warning notices regarding the prohibition of entry by unauthorised persons,

naked lights and other hazards shall be conspicuously displayed.
Observance Of Fire and Safety Regulations
38. (1) A competent person shall be responsible for ensuring the observance of all
fire and safety precautions within restricted areas.
(2) There shall be provided to the satisfaction of the Authority adequate means
designed to extinguish fire and to control effectively the spread of fire and
explosions.
(3) A central fire station shall be provided with suitable and adequate
equipment manned by personnel who can immediately proceed to the scene
of a fire or explosion and effectively make use of the available equipment to
put the fire or explosion under control.
(4) Each item of the fire-fighting equipment shall be inspected and tested at
appropriate intervals by a competent person appointed for the purpose, and
the last date of such inspection shall be painted on the appliance and the result
of such inspection shall be entered in a log specially kept for that purpose, all
such entries shall be duly signed by the competent person.
(5) Operational personnel employed in the hydrocarbon refining facility area

shall be instructed in the use of fire-fighting equipment. Instructions to personnel
in case of fire shall be clearly and concisely expressed in writing and prominently
displayed.
(6) Easy access to strategic points for mobile equipment shall be provided and
shall at all times be kept free.
(7) The manager shall ensure that no person smokes or ignites any fire or flame
in any hydrocarbon refining facility area except in places set aside for the
purpose.
(8) Except with the permission of the manager no person shall have in his
possession while he is in any hydrocarbon refining facility area any matches or
mechanical lighters or similar devices or any lamp or light or any ignited or
ignitable matter.
(9) Whenever a fire or explosion occurs in a refining area the competent person
in the fire station shall be informed immediately and steps shall be taken to
extinguish the fire and control further explosion.
Safety Clothing and Appliances
39. (1) The manager shall provide, for all persons working in the refining areas
suitable and adequate protective clothing, equipment and appliances of a
pattern approved by the Authority.
(2) The manager shall instruct all workers on the importance and use of safety
clothing and appliances issued to them and shall enforce their use. The
Manager shall make arrangements to ensure that all equipment is always kept
in good condition.
(3) Quick-operating automatic water showers ready for instant use and tested
daily shall be provided in the vicinity of caustic vessels and pumps and in such
other appropriate accessible places as the Authority may, from time to time,
direct.
(4) Eye-wash bottles and automatic fountains shall be located in strategic and
conspicuous locations in the refining area.
Instructions On Emergency Procedures
40. (1) The manager shall provide instructions regarding procedures to be followed
during an emergency and shall ensure that each worker knows his functions
under such instructions.
(2) The manager shall send a copy of such instructions and any subsequent
alterations thereto to the Authority.
Protection Against Dangerous Parts of Machinery
41. All dangerous or moving parts of any machinery shall be securely fenced or
guarded whether situated in an engine house or, not, so however that, in so far
as the safety of a dangerous part of any machinery cannot by reason of the
nature of the operation be secured by means of fixed guard, the requirements
of these Regulations shall be deemed to have been complied with if a device
is provided which satisfactorily warns or protects the operator from coming in
contact with that part.
Fires and Explosions
42. Where fire or explosion occurs within a refining area, a full report shall be made
in line with relevant regulations issued by the Authority.
Medical Facilities and First Aid Services
43. (1) Adequate first aid and emergency medical facilities shall be provided to
deal with all cases arising from any accident occurring in a refining area.
(2) First aid boxes or cupboards shall be placed under the charge of competent
persons who shall always be readily available during working hours, and a notice
shall be affixed in every work-room stating the name of the person in charge of
the first aid box or cupboard provided in respect of any area and for any shift
period.
Training of Workers
44. No person shall be allowed to work with any machinery or in any process, which
is liable to cause or result in bodily injury to him or endanger his health, unless he
has been fully instructed as to the danger likely to arise therefrom and the
precautions to be observed therewith; and-
(a) he has received sufficient on-the-job training on the machinery or in the

process; or
(b) he is under the adequate supervision of a person who has a thorough
knowledge and experience of the machinery or process and who shall be
responsible for the safety of the trainee.
Storage Tanks
45. (1) All permanently placed storage tanks containing crude oil and any class of
product shall be installed within a bund-wall capable of retaining the contents
of the largest tank plus 10% of the remaining tanks; and where there is only one
tank, the capacity of such bund-wall shall be sufficient to contain the whole of
the tank's contents should the tank be emptied by leakage or otherwise.
(2) In addition, the tanks referred to in Sub-regulation (1) of this regulation shall-
(a) be fitted with access manways sufficiently large to enable easy access
and with vents capable of relieving any excess pressure or vacuum;
(b) have access to their roofs by means of a ladder or staircase of a type

approved by the Authority and all floating roof tanks shall have
adequate wind girders;
(c) have provision made for containing any leakage to prevent oil
contaminating the water when located above water; and
(d) be provided with efficient electrical earthen connections independent

of pipe connections, having an electrical resistance value not
exceeding ten ohms when measured by an earth resistance tester.
Entry Into Storage Tanks, Etc.
46. (1) Before permitting workmen to enter a tank which had previously contained
petroleum products, it shall be gas freed and the concentration of gas
determined, and all feed and vent lines shall be disconnected and blanked off,
and tank hatches shall be kept open.
(2) During tank entry operations adequate ventilation shall be provided inside
the tank and, as work progresses, frequent tests shall be made to detect level
of gas concentration in the tank.
(3) If the gas concentration exceeds 0.05%, gas masks shall be worn,
(4) Tools incapable of causing sparks, and hand lamps and torches used shall
either-
(a) be certified flame-proof, group 11, in conformity with British Standard
229; or
(b) be constructed in compliance with the United States National Electrical

Safety Code and the National Board of Fire Under-Writers National
Electric Code for explosion proof electrical apparatus and equipment
and any other applicable code acceptable to the Authority.
Operational Safeguards in Relation to Storage Tanks
47. The manager shall ensure, especially where any tank in operation is being filled,
that operational safeguards are used to avoid, so far as possible, exceeding the
safe limit of fill applied to the particular tank under consideration.
Storage Tanks to Be Calibrated
48. (1) Before a tank is used for any storage, it shall be properly calibrated in the
presence of the Authority by a method approved by the Authority at a
prescribed fee, and copies of the calibration tables of the tank shall be
forwarded to the Authority for approval.
(2) If for any reason any tank which has been in use requires to be recalibrated,
the calibration shall be done in the presence of the Authority by a method
approved by the Authority at a prescribed fee and copies of the calibration
tables of the tank shall be forwarded to the Authority for approval.
(3) Every storage tank in use shall be re-calibrated for a period not exceeding 5
years from the date of last calibration.
Storage Of Liquified Petroleum Gases
49. (1) The design, construction and testing of the liquefied petroleum gas (LPG) unit
and storage shall be in accordance with the current requirement or standard
practice of design and construction approved by the Authority.
(2) The storage and handling of liquefied petroleum gas shall be in accordance
with best oil and gas industry practices.
(3) The standard practices referred to in this regulation shall be such as are
acceptable to, and approved, by the Authority
Disruption To Continuous Operations

50. (1) The manager shall notify the Authority of planned shut-down not less than
thirty days using Form F in the Schedule to these Regulations and thereafter,
obtain approval from the Authority before shutting down.
[Form F. Schedule.]
(2) The manager shall on the occurrence of any operational incident resulting
in the shut-down of the hydrocarbon refining facility or any part thereof or
resulting in putting out of use of any plant, machinery or installation or on the
occurrence of any other emergency resulting in such shut-down or putting out
of use, forthwith notify the Authority in writing of the occurrence within 24 hours
stating-
(a) the reasons for the shut-down or putting out of use, its estimated duration
and its possible effect on the production commitment of the refining
facility; and
(b) the steps, if any, the manager has taken or proposes to take to avoid a
recurrence of the incident or circumstances that give rise to the shut-
down or putting out of use.
Abandonment, Replacements and Relocation of Any Component or Plant
51. (1) No plant shall be abandoned or decommissioned without written approval

from the Authority and shall be in accordance with the provisions of
Decommissioning and Abandonment Regulations.
(2) No plant or plant equipment shall be acquired, replaced or relocated

without conformity assessment conducted and approval granted by the
Authority.
Pressure Vessels
52. (1) All pressure vessels in use shall be of good construction, sound materials and
adequate strength and shall be properly maintained in accordance with its
codes and standards in addition to any other requirements acceptable to the
Authority.
(2) Every pressure vessel shall be periodically inspected in accordance with the
applicable provisions of the Midstream and Downstream Petroleum Safety
Regulations and, in particular, the following matters shall be carried out-
(a) oil heaters shall be inspected not more than eighteen months from their
first commissioning and thereafter at intervals of thirty months and the
fire tubes replaced when below the minimum thickness, and at the
same time, other parts and fittings both internal and external shall be
inspected;
(b) all compressed air receivers shall be drained of liquid daily where the
internal surface of the receiver cannot be inspected and, in any event,
not less often than once in every thirty months the receiver shall be
tested hydraulically to the recommended test pressure;
(c) Gas separators shall be tested whenever the opportunity occurs but at
intervals not exceeding 36 months, and they shall be tested to a
pressure in excess of its working pressure in accordance with the code
of design and construction of the vessels;
(d) Relief valves and safety valves shall: -
(i) be inspected at least once in every thirty months or at such

shorter intervals as shall be necessary to maintain them in
satisfactory condition and to ensure that they operate
effectively as soon as the safe working pressure is exceeded;
(ii) be set to operate at a pressure not exceeding 10% above the

working pressure and shall pass full design quantity at this
setting, and where appropriate, bursting discs may be used in
lieu of safety valves;
(iii) be stamped or tagged with their set popping pressure.
(3) Every pressure vessel shall be fitted with tested pressure gauge, graduated in
the metric system, and such gauge shall be checked for accuracy at regular
intervals.
(4) All new pipework shall be tested in accordance with the code of design and
construction before being put into service, and shall also be similarly tested
whenever any alteration or repair has been carried out in the presence of the
Authority.
(5) In this regulation, the expression "pressure vessel" includes steam boilers, steam
receivers and steam containers, air receivers and any other similar equipment
and their attachments.
Non-Pressure Vessels
53. (1) Heat exchangers, processing vessels and other equipment used in the
hydrocarbon refining facility shall be inspected from time to time in accordance
with an inspection code acceptable to the Authority and in the presence of the
Authority
(2) If any fault is detected during the course of inspection, a detailed report of
inspection shall be forwarded to the Authority.
Handling And Blending Of Dangerous Additives And Chemicals
54. (l) Any additives and chemicals used in refining operations shall be handled
strictly and in accordance with the up-to-date instructions as drawn up by the
manufacturers and in compliance with the directives of the Authority, and a
copy of each instruction shall be forwarded to the Authority.
(2) The amount of additives on any finished product shall not exceed that
which is acceptable in the country and in any case shall not exceed that
amount which the Authority may, from time to time, specify.
(3) No additive or chemical shall be used in any hydrocarbon refining facility

without approval by the Authority at a prescribed fee.
(4) Where the result of any sample which an inspector of the Authority collects
and analyses in the presence of an officer delegated by the manager shows
that the approved maximum has been exceeded at any time, the manager
shall be guilty of an offence under these Regulations and shall be liable to a fine
not exceeding USDl00,000.
(5) Any hydrocarbon refining facility found to be using any chemical not
approved by the Authority contrary to sub-regulation (3) of this Regulation shall
be liable to a fine not exceeding USD100,000.
Storage Capacities
55. (1) The total storage capacities for finished products in any hydrocarbon refining
facility shall not be less than thirty days of the maximum processing capacities
of the refining facility.
(2) The storage capacity for any feedstock, additive or chemical shall be such
as to satisfy at least thirty days' requirement.
Spare parts
56. The manager shall ensure ready availability of spare parts for critical equipment
in compliance with the requirements of the Authority.
Analysis of Imported Stock for Use in the Refining Facility

57. (1) The exact quantity of each imported feedstock, blend-stock and additives
and details of all analysis carried out by the hydrocarbon refining facility shall be
duly recorded and provided on request by the Authority.
(2) Specimens of imports shall be analyzed in presence of the Authority and

results of such analysis shall be submitted to the Authority.
Samples and Specimens
58. (1) The licensee may collect for examination and analysis, samples and
specimens of crude oils, catalysts, petroleum products or any other materials
considered necessary in hydrocarbon refining operations.
(2) The Authority shall be informed and shall be given details of all samples and
specimens collected in sub-regulation 59.
Samples and Specimens: Control of Export
59. The licensee may not export samples or specimens abroad except with the
written approval of the Authority and subject to such conditions as the Authority
may specify.
Office and Working Accommodation
60. The manager shall provide on the refining premises such office and other working
accommodation for an inspector as may be specified by the Authority.
PART 7 - REPORTS
Reporting Of Accidents
61. (1) Where any accident occurs in a hydrocarbon refining facility which results in
loss of life or serious injury written notice of the accident, in Form D in the
Schedule to these Regulations shall forthwith be sent by the manager to the
Authority and copied to the nearest inspector by the manager within 24 hours;
[Form D. Schedule.]
(2) The Authority may, if he so desires, order an inquiry;
(3) For the purpose of this regulation, serious injury includes any injury involving
the loss of or impairment in the use of any limb or other part of the body or one
which results in such incapacity (whether temporary or permanent) that the
sufferer is incapable of continuing the work on which he was engaged
immediately before he suffered the injury;
(4) A record shall be kept of all other injuries including near misses in the
hydrocarbon refining facility and any such record shall be made available to
an inspector on demand;
(5) The provisions of this regulation shall be additional to the requirements

contained in the Factories Act, Workmen's Compensation Act and the Electrical
Supply Regulations in the case of an accident or fire involving electrical
apparatus or equipment.
Inquiries Into Accidents
62. (1) Any inspector holding an inquiry under this Part shall, for the purposes of the
inquiry, have power to do the following things, that is to say-
(a) to summon witnesses;
(b) to call for the production of relevant books and documents which may be
necessary to ascertain whether the provisions of these Regulations have
been complied with;
(c) to examine any person or witness, either alone or in the presence of any
other person, and to require any such person or witness to sign a
declaration of the truth of the matters respecting which he is so examined;
(d) to exercise such other powers as may be necessary for carrying these
Regulations into effect.
(2) A notice requiring a witness to appear at an inquiry to be held pursuant to
these Regulations shall be in Form E in the Schedule to these Regulations.
[Form E. Schedule.]
Monthly Statements on Production, Etc.
63. (1) The manager shall forward to the Authority not later than Fourteen (14) days
after the end of each month, a hydrocarbon refining facility statement for the
month in a form which the Authority may from time to time, direct.
The statement shall contain-
(a) a report of important occurrences, technical or otherwise, in the
hydrocarbon refining facility during the month;
(b) information on the duration of any shut-down and any major work done
during the shut-down including information on any plant taken out of
commission during the shut-down and the reasons for the work done;
(c) information covering inspection report on any installation in the
hydrocarbon refining facility;
(d) the latest estimates of anticipated monthly production for the next three
months explaining the reason or reasons for any increase or decrease in
production generally or in a specific product or products;
(e) a brief summary of the results of test runs, and experiments carried out
during the month in the normal course of operations on any section of the
hydrocarbon refining facility.
Annual Report
64. Not later than two (2) months after 31st December of every year, the manager
shall forward to the Authority three copies of an annual report reviewing the
activities for the previous year and details of proposed activities for the current
year; and such report shall be prepared in a form acceptable to the Authority.
Books, Records, Etc. To Be Made Available to The Authority
65. The manager shall make available to the Authority or to his duly authorised
representative such books, files and technical data as are relevant to the
technical operation of the hydrocarbon refining facility.
Special Reports
66. The Authority may, from time to time, call for special reports on any aspect of
the refining operations which may or may not have otherwise been provided
for in these Regulations or any other directives given by the Authority.
PART 8 – OPERATIONS SUSTAINABILITY
Greenhouse Gas Management

67. A licencee shall ensure the sustainable management of greenhouse gases from
its operations to ensure consistent reduction, capture or utilization in line with the
relevant regulations and guidelines issued by the Authority.
Flare Management
68. (1) Prior to planning any flaring or venting operations, the holder of a
hydrocarbon refining facility licence shall notify and seek the approval of the
Authority.
(2) Every Licencee shall: -
(a) manage waste gases and regularly report quantities being flared and
vented; and
(b) provide a programme for flare reduction and cost implication
associated with their flaring and venting.
Sustainable Water Management
69. (1) Every licencee shall ensure sustainable management of water resources for
hydrocarbon refining facility operations by minimizing the use of water supply
from boreholes, streams or sources.
(2) For any abstraction of water for hydrocarbon refining facility operations, a
water abstraction study shall be conducted in line with relevant regulations
(3) The report of the abstraction study in sub-regulation (1) of this regulation, shall
be approved by the Authority.
Crude Supply Guarantee and payment for Crude Oil in Nigerian Naira
70. (1) Pursuant to section 109(3) of the Act, the Authority shall determine crude oil
requirement for all refineries in Nigeria and shall consider: -
(a) The installed capacity of each refinery;

(b) Capacity utilization of each refinery in the past one year;
(c) Estimated loss factors associated with feedstock shrinkage during
delivery;
(d) Available infrastructure for crude oil delivery to each refinery; and
(e) Characteristics of crude oil required by each refinery.
(2) In consultation with appropriate authorities, the Authority may invoke public
service obligation on sellers of feedstock to accept payments for crude oil to
refineries in Nigerian Naira where the value of crude oil required is equivalent to
the value of petroleum products supplied by designated refinery.
PART 9 – DECOMMISSIONING AND ABANDONMENT
Decommissioning and Abandonment of Hydrocarbon Refining Facilities
71. The decommissioning or abandonment of hydrocarbon refining facilities shall

be in accordance with relevant regulations, guidelines, directives or notices
PART 10 – OFFENCES, AND FEES
Offences
72. (1) If any person-
(a) contravenes any provision of these Regulations; or
(b) fails to comply with any directives of the Authority given in exercise
of any of the powers conferred under these Regulations; or
(c) fails to comply with the terms of any warning notice issued pursuant
to these Regulations,
shall be liable to a fine of USD$250,000 and in addition, any permit, approval

or license granted to that person may be withdrawn or cancelled by the
Authority.
(2) Any person who fails or refuses-

(a) to appear as a witness following an invitation to do so issued by the
Authority under Regulation 18 of these Regulations; or
(b) to produce any book, information or document required to be produced

by the Authority for the purposes of an inquiry and during and any other
regulatory needs,
shall be liable to a fine not exceeding USD250,000 (Two Hundred and Fifty
Thousand United States Dollars)
(3) Where a statement, information or report made or recorded pursuant to these
Regulations includes any misleading, untrue, or insufficient statement the
manager shall, unless he proves that he had reasonable grounds to believe that
the statement was true or proves that he did not authorise the making or
recording of the untrue statement, be liable to a fine of USD250,000 (Two
Hundred and Fifty Thousand United States Dollars)and in addition any permit,
approval or license issued to that person may be withdrawn.
Fees
73. The following fees shall be payable: -
ACTIVITIES/ FEE
SN
(PERMIT/APPROVAL/LICENCE) PROCESSING APPLICATION
A HYDROCARBON REFINING FACILITIES
USD 20,000 for capacities
< 1,000 BPSD or its
equivalent
1 Licence To Establish (LTE) between 1,000 and 30,000 USD 2,000
BPSD or its equivalent
above 30,000 BPSD or its
equivalent
< 1,000 BPSD or its
equivalent
2 Licence To Construct (LTC) between 1,000 and 30,000 USD 2,000
equivalent
< 1,000 BPSD or its
equivalent
Licence To Operate (LTO)
3 between 1,000 and 30,000 USD 2,000
New
> 30,000 BPSD or its
equivalent
USD 2,000 per BPSD
Capacities < 30,000 BPSD
Licence To Operate (LTO) or its equivalent
4 USD 2,000
Renewal USD 1,000 per BPSD
Capacities > 30,000
BPDSD or its equivalent
5 Plant Relocation Approval USD 5,000 USD 2,000
Critical Equipment
6 USD 2,000 per equipment
Relocation
Approval To Pre-Commission
7 USD 2,000
and Commission
Approval To Evacuate
8 Products from Hydrocarbon NGN 1 per liter
Processing Facility
Products Off Takers Permit
9 (For Volume =/> 250,000 NGN 1 per liter
Liters)
Petroleum Products
10 Evacuation Via Vessel from A NGN 250,000
Refining Facility
Petroleum Products
11 Evacuation Via Truck NGN 3,000 per truck
(Waybill Clearance Fee)
Petroleum Products
Evacuation Via Vessel
12 NGN 250,000
(Cargo Quantity Clearance
Fee)
Approval To Evacuate Slop
13 Oil from Hydrocarbon NGN 100,000
Processing Plants
Approval To Evacuate Gas
14 USD 5,000
Plant Condensate
15 Tank Calibration Approval USD 1,500 per tank
16 Tank Integrity Test Approval USD 1,500 per tank
Certification Of
17 NGN 100,000
Chemicals/Additives
18 Approval To Modify USD 10,000
Approval To Deploy New
19 USD 1,000
Technology
USD 5,000 for capacities <
1,000 BPSD or its
equivalent
Conformity Assessment
20 between 1,000 and 30,000
Approval
equivalent
5% of transaction not less
than USD 50,000 per BPSD
Capacities < 30,000 BPSD
Assignment or Transfer of
21 or its equivalent NGN 500,000
Licence
USD 150,000 per BPSD
Capacities > 30,000 BPSD
or its equivalent
B MEASUREMENT
1 Licence To Establish (LTE) USD 50,000 USD 2,000
2 Licence To Construct (LTC) USD 20,000 USD 2,000
3 Licence To Operate USD 100,000 USD 2,000
Operational LACT/per
4 USD 10,000
Accounting Meter
Calibration / Recertification USD 1,000 per tank
5
of Storage Tank
C TRANSPORTION AND DISTRIBUTION
Barging, Rail and Trucking of USD 2,000 for Barging/Rail
1
Crude Oil USD 1,000 for Trucking
D EXPORT AND IMPORT
EXPORT PERMIT (Refinery,
NGN 1 per liter or its
1 Depot, Processing Facilities,
equivalent
Terminals, Jetties Etc.)
Import Approval for
2 Additives and other USD 1,000
Chemicals
Import Permit (For Petroleum,
Petroleum Products and NGN
3 NGN 1/LTR
Natural Gas and Gas 75,000/30,000MT
Products)
Approval for Inclusion of NGN
4 NGN 200,000/PERMIT
Countries of Origin 75,000/30,000MT
WHOLESALE PETROLEUM LIQUIDS SUPPLY LICENCE
Wholesale Petroleum Liquids
1 (Crude Oil export) Supply for USD 1 per BBL
Volumes < 50,000 BBLS
(Crude Oil export) Supply for
2 USD 0.85 per BBL
Volumes >=50,000 to 200,000
BBLS
3 (Crude Oil export) Supply USD 0.5 per BBL
Volumes >200,000 BBLS
4 50 Kobo per liter
(Products export) Supply
WHOLESALE NATURAL GAS SUPPLY LICENCE
Wholesale Natural Gas
USD 0.16 per
1 Supply for Volumes <
MSCF
300MMSCFD
USD 0.14 per
2 Supply for Volumes >=300
MSCF
MMSCFD to 1.2BSCFD
3 USD 0.08per MSCF
Supply Volumes >1.2BSCFD
Wholesale Gas (Compressed
4 50 Kobo per ton
Natural Gas) Supply
O GENERAL FEE
1 Due Diligence
Certificate of Quantity
2 NGN 250,000
(COQ)
Product Import Certification
3 NGN 220,000 per PIC
(PIC)
Product Reconciliation
4 NGN 250,000
Clearance
PART 11 – SUPPLEMENTAL PROVISIONS
Interpretation
74. In addition to the definitions contained in the Petroleum Industry Act, 2021 the
following definitions shall apply to these Petroleum Refining Facility Regulations.
“the Act” means Petroleum Industry Act, 2021.

“Approval to Construct” means a statutory instrument conferring on the holder the
authorization to commence the fabrication and construction of a process plant or
facility
"class' A' petroleum" includes all hydrocarbon liquids having a flash point below 73 oF,
by Abel closed cup test, and all petroleum stocks with a flash point below 200 of that
are being handled at temperatures above their flash point;
"class 'B' petroleum" includes all hydrocarbon products having flash points from 73 oF, to
50 oF, inclusive;
"class 'C' petroleum" includes all hydrocarbon products having flash points above
150 oF;
"Critical equipment", for the purpose of this regulations, 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 hydrocarbon refining facility or parts thereof.
“Critical systems” for the purpose of this regulations, means any system which if taken
out of commission will endanger the life of, or lead to a malfunctioning or a shut-down
of, the hydrocarbon refining facility or parts thereof.
"competent person" means a person appointed, with the approval of the Director, by
the manager in writing as a person capable of exercising overall general supervisory
responsibility in ensuring compliance with the provisions of these Regulations or parts
thereof;
“Conformity assessment” means is the activity of verifying that a facility, equipment or
system is being operated and maintained in line with standard or technical
specification.
"Crude oil" means mineral oil in its natural state before it has been refined or treated
(excluding water and other foreign substances);
“Crude oil refining” means the processing or separation of crude oil into products to
meet market quality or specification
“Design safety case” means a written demonstration of evidence and due diligence
provided by a corporation to prove that it has the ability to safely operate a facility and
effectively control hazards
“Derivatives” means products obtained from processing of crude oil, natural gas or
other hydrocarbon
“Environmental management plan” means a plan that specifies the environmental,
health and safety terms for the mitigation, monitoring, and institutional measures to be
implemented during the development and operation of a facility or operation to
eliminate adverse environmental and social impacts to tolerable levels.
“Feedstock shrinkage” means the loss of feedstock during delivery or transfer
“Greenfield Conformity Assessment” means is the activity of verifying that a standard or
technical specification was applied in the design, fabrication, construction and
installation of a facility, an equipment or system during development.
“Modification”
“Greenhouse gases” means gases that trap heat in the atmosphere and majorly
emanate from combustion of fuels or as fugitive releases
“Hydrocarbon Refining Plant” means process plant or facility by which crude oil, natural
gas and other hydrocarbon are processed or transformed into usable petroleum
products or derivatives
“Petroleum-based additive” means are chemical compounds that improve the quality
of petroleum liquids, natural gas or other hydrocarbon materials
“Petroleum liquids derivatives” means products obtained from processing of petroleum
liquids
"Refining" includes the liquefying of petroleum gas or gases by whatever method,
separating or crude oil by whatever method into any grade of petroleum product,
treating and up-grading of any petroleum or petroleum product by whatever method
into other product or products.
"Refining area" means any area in which operations connected with oil refining or the
extraction of petroleum spirit from natural gas are carried on or in which oil or the
products thereof are stored, including any gay, oil via duct leading to the sea or landing
stage whether enclosed or not) adjacent to such area.
“Refining facilities” means any facility where petroleum refining activities take place
and may include Floating Production Storage and Offloading (FPSO), Floating
Production Unit (FPU), Floating Storage and Offloading Unit (FSO), Mobile Offshore
Production Unit (MOPU), Refineries, petrochemical plants, terminals, gas-based fertilizer
plants, methanol plants, and gas-derivatives facilities, oil and gas handling facilities and
any other similar facilities.
“Equivalent” means equal in value or amount
"Flash-point" means the degree of temperature at which petroleum gives off a
flammable vapour upon being tested by either the Abel closed cup tester or the Pensky-
Martens closed tester;
“Hydrocarbon refining facility” means crude oil refining plants, natural gas processing
plants, conditioning plants, treatment plants, gas refining plants, petrochemical plants
and any other plants for the processing of crude oil, natural gas and other hydrocarbon
into products or other derivatives.
"inspector" means a representative of the Authority, or any other person appointed in
writing by the Authority to represent the Nigerian Midstream and Downstream Petroleum
Regulatory Authority;
“Licence to establish” means a statutory instrument conferring on the holder the
authorization to commence the detailed engineering design development of a process
plant or facility
“Licence to operate” means a statutory instrument conferring on the holder the
authorization to commence the operation of a process plant or facility
"licensee" means the holder of a refining licence issued pursuant to the Act and these
Regulations;
"L.P.G." or "liquefied petroleum gas" means any petroleum product which is gas at
normal atmospheric temperature and pressure comprising mainly of butane or propane
or admixtures thereof and, being liquefiable under pressure is normally stored and
handled as a liquid;
"Manager" means the person appointed manager pursuant to regulation 4 of these
Regulations;
“Major equipment” means equipment and components required for a facility or plant
to achieve commercial operation
"Minister" means the Minister of Petroleum Resources;
Modification” includes expansion, rehabilitation, refurbishment, revamping, upgrading
"Mobile plant" includes both portable and transportable plants or units;
"Natural gas" means gas obtained from boreholes and wells and consisting primarily of
hydrocarbons;
“Natural gas conditioning or refining plant” means processing of natural gas to achieve
transport and sales specifications
“Network operations” means the operation of a set of interconnected transportation
infrastructure
“Operating envelope” means the limited range of process parameters in which
operations will result in safe and acceptable performance of a plant or facility
“Operator” means an entity or company managing the operations of a facility
“Optimisation” means maximizing plant yields and efficiency
“Petrochemical plant” means a facility for the processing of chemicals derived from
petroleum.
“Petrochemical products” means chemical products obtained from the processing of
petroleum
“Precursors” means chemical that is transformed into another compound through
further processing
"refining" includes the liquefying of petroleum gas or gases by whatever method,
separating or crude oil by whatever method into any grade of petroleum product,
treating and up-grading of any petroleum or petroleum
product by whatever method into other product or products;
"refined petroleum products" or "petroleum products" includes motor spirit, gas oil, diesel
oil, automotive gas oil, fuel oil, aviation fuel, kerosene, liquefied petroleum gases and
any lubricating oil or grease or other lubricant;
"Refining area" means any area in which operations connected with oil refining or the
extraction of petroleum spirit from natural gas is carried on or in which oil or the products
thereof are stored, including any gay, oil
viaduct leading to the sea or landing stage whether enclosed or not) adjacent to such
area;
“Refining facilities” means any facility where petroleum refining activities take place
and may include Floating Production Storage and Offloading (FPSO), Floating
Production Unit (FPU), Floating Storage and Offloading Unit (FSO), Mobile Offshore
Production Unit (MOPU), Refineries, petro-chemical plants, terminals, gas-based fertilizer
plants, methanol plants, and gas-derivatives facilities, oil and gas handling facilities and
any other similar facilities.
"Refined petroleum products" or "petroleum products" includes derived from crude oil
and natural gas processing such as motor spirit, gas oil, diesel oil, base oil, automotive
gas oil, fuel oils for heating and electricity generation, aviation fuel, kerosene, liquefied
petroleum gases, ethane, propone, Butanes, pentanes, natural gas liquids, asphalts,
and such other derivatives, and any lubricating oil or grease or other lubricant
"Restricted area" has the same meaning as the "refining area".
“Sparing philosophy” means the concept for providing additional equipment in parallel
on working and standby modes to ensure a facility or plant continues to operate
whenever the equipment fails
“Technical and safety reviews” means studies conducted to address adequacy of plant
configuration and design safety
“Technology adaptation” means process for the adoption of a new, novel or
unidentified technology, method or system through technical verification
“Water Abstraction study” means study conducted to infer the impact to the
environment of taking water from sources such as rivers, streams, canals, springs,
underground or the sea
Citation
75. These Regulations may be cited as the Hydrocarbon Processing and Refining
Facility Regulations, 2022.
SCHEDULE 1 – FEES
SCHEDULE 2: FORM A - LICENCE TO ESTABLISH
SCHEDULE 3: FORM B – APPROVAL TO CONSTRUCT
SCHEDULE 4: FORM C – LICENCE TO OPERATE
SCHEDULE 5: FORM D – REPORT OF A SERIOUS/FATAL ACCIDENT
SCHEDULE 6: FORM E – NOTICE OF HEARING BY THE AUTHORITY
SCHEDULE 7: FORM F – DISRUPTION TO CONTINUOUS OPERATION
Made at Abuja this …………………. day of ……………. 2022
……………………………………………………
Engr. Farouk A. Ahmad
Authority Chief Executive
Nigerian Midstream and Downstream Petroleum Regulatory Authority
NMDPRA
AAA
SCHEDULE 2
FORM A - (Regulation 3)
Hydrocarbon Processing and Refining Facility Regulations 2022
APPLICATION FOR A LICENCE TO ESTABLISH (LTE) A HYDROCARBON REFINING PLANT

IN NIGERIA
1. Name of applicant……………………………………………………………….………….
2. Registered address in Nigeria……………………………...……….………………………
3. Nationality of applicant……….…………………………………………………………….
……..………………………………………………………………………………………..
4. a) Names, address, and nationality of directors (where applicable) ……………...…..

..……………………………………………………………………………………..………
…...………………….………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………
b) Names, addresses, and nationality of every individual or company participating in the

project and the extent of each individual’s or company’s
participation:…………………..……….…………………………………………...………
….………………………………………………………...…………………………………
………………………………………………………….…………...………………………
………………………………………………………………………………………………
………………………………………………………
5. Capital available to applicant for the construction of the refinery/plant and details of the
Method of financing proposed…….…………………………………………….………
………………………………..……………………………………………………….…….
6. Proposed location of the refinery/plant……………………………………………………...

………………………………………………………………………………………….……
7. Type of refinery/plant proposed…………………………………………………………….
………………………………………………………………………………………………..
..………………………………………………………………………………………………
8. Refining / Plant capacity range…………………………...…… ……………….…………..

………………………………………………………………………………………………
……………………………………………………………………………………………...
9. Proposed source(s) of crude oil (Feedstock) supply…….…. …..………………….………
…………………………………………………………………………………………………………….
………………………………………………………………………………………………..……………
…………………………………………………………………………………………
10. a) Products to be produced……...….………………………………………………….

………………………………………………………………………………………………
………………………………………………………………………………
b) Detailed specifications of products (to be attached to this application):…………...

………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………
11. Proposed market for products produced: …………………………………………………..

……...…………………………………………………………………………………….…………
………………………………………………………………………………………
Estimate, by product grade, or proposed product exports, if any...……………………......

………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………
12. State if participants will accept participation of private Nigerian investors.……………….
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………
13. Any additional information in support of application (provide the information on a separate sheet
wherever necessary):…………………..……………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………
I declare that the foregoing particulars are true and correct.

………………………………………… Date……………………
Signature of applicant or his Attorney
SCHEDULE 3
FORM B (Regulation 3)
APPLICATION FOR APPROVAL TO CONSTRUCT (ATC) A HYDROCARBON REFINING

PLANT IN NIGERIA
……..………………………………………………………………………………………..

..……………………………………………………………………………………..………
…...………………….………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………

participation:…………………..……….…………………………………………...………
….………………………………………………………...…………………………………
………………………………………………………….…………...………………………
………………………………………………………………………………………………
………………………………………………………
5. Capital available to applicant for the construction of the refinery/plant and details of the
………………………………..……………………………………………………….…….
6. Location of the refinery/plant with coordinates…………………………………………...

………………………………………………………………………………………….……
7. Refining/Plant configuration…………………………………………………………….
………………………………………………………………………………………………..
..………………………………………………………………………………………………
………………………………………………………………………………………………
……………………………………………………………………………………………...
9. Source(s) of crude oil (Feedstock) supply……………………………………………….….
…………………………………………………………………………………………………………….
………………………………………………………………………………………………..……………
…………………………………………………………………………………………
(Attach Feedstock Assay)
………………………………………………………………………………………………
………………………………………………………………………………

………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………
11. Proposed market for products…………………………………………….………………..

……...…………………………………………………………………………………….…………
………………………………………………………………………………………
12. Estimate, by product grade, or proposed product exports, if any...……………………......

………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………
13. Feedstock supply and product evacuation infrastructure.……………….
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………
wherever necessary)…...………………………..……………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………
………………………………………… Date……………………
Signature of applicant or his Attorney
SCHEDULE 4
FORM C (Regulation 3)
APPLICATION FOR LICENCE TO OPERATE (LTO) A HYDROCARBON REFINING PLANT IN

NIGERIA
……..………………………………………………………………………………………..

..……………………………………………………………………………………..………
…...………………….………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………

participation:…………………..……….…………………………………………...………
….………………………………………………………...…………………………………
………………………………………………………….…………...………………………
………………………………………………………………………………………………
………………………………………………………
5. Working capital available to applicant for the operation of the plant and details of the
………………………………..……………………………………………………….…….
6. Location of the refining/plant with coordinates…………………………………………...

………………………………………………………………………………………….……
7. Refining/Plant configuration…………………………………………………………….
………………………………………………………………………………………………..
..………………………………………………………………………………………………
………………………………………………………………………………………………
……………………………………………………………………………………………...
9. Source(s) of crude oil (Feedstock) supply……………………………………………….….
…………………………………………………………………………………………………………….
………………………………………………………………………………………………..……………
…………………………………………………………………………………………
(Attach Feedstock Assay)
………………………………………………………………………………………………
………………………………………………………………………………

………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………
11. Proposed market for products…………………………………………….………………..

……...…………………………………………………………………………………….…………
………………………………………………………………………………………
12. Estimate, by product grade, or proposed product exports, if any...……………………......

………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………
13. Feedstock supply and product evacuation infrastructure.……………….
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………
wherever necessary)…...………………………..……………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………… Date……………………
Name & Signature of applicant or his Attorney
SCHEDULE 5
FORM D (Regulation 61)
From:
Date:
To: The Authority Chief Executive,
Nigerian Midstream and Downstream
Petroleum Regulatory Authority
REPORT OF A SERIOUS/FATAL ACCIDENT

1. Name of applicant……………………………………………………………….………………….
2. Date of Accident……………………………...………Time ……….……………………………..
3. Nationality of applicant
(a) Location…………………………………………………………………………………….
(b) Local Government Area…………………………………………………………………….
(c) State…………………………………………………………………………………………
4. Nature of Accident ……….…………………………………………………………………………
5. How accident occured ……………...………………………………………………………………
6. *Name of injured/deceased person(s)……………………………………………………………….
7. Occupation………………………………………………………………………………………….
8. Date and time of application of first aid……………………………………………………………..
………………………………………………………………………………………………………
9. Date injured person was sent to hospital……………………………………………………………
10. Place where injured person may be interviewed……………………………………………………
11. Name of eye-witnesses, if any, and copies of any statement taken at the time of or immediately
after the incident under report………………………………………………………………………
………………………………………………………………………………………………………
12. State whether in your opinion there was any degree of serious or wilful misconduct involved……
………………………………………………………………………………………………………
………………………………………
Signature
………………………………………
Designation
* Delete whichever is inapplicable
SCHEDULE 6
FORM E (Regulation 62)
NOTICE OF HEARING BY INSPECTOR
To: 1……………………………………………………………………………………………..
2……………………………………………………………………………………………..
You are hereby summoned before me at……………………………………………………
……………………………………………………………………………………………on
the ………..day of………………………………………………………………..20………
and to give evidence at an enquiry been held into an accident at…………………………..
………………………………………………………………………………………………
on the……………day of………………………………………………………….…….......
and you are required to bring with you –
3……………………………………………………………………………………………..
………………………………………………………………………………………………
………………………………………………………………………………………………
DATED This…………………………………………………………………….20……….
………………………………
Inspector
Notes:
1. Insert name of intended witness
2. Insert address of intended witness
3. name any document the intended witness will be required to produce
SCHEDULE 7
FORM F (Regulation 50)
NOTIFICATION TO DISRUPTION TO CONTINUOUS HYDROCARBON REFINING PLANT

OPERATION
1. Name of licencee.……………………………………………………………….…………………..
2. Registered address in Nigeria……….………………………………………………………………
3. *Plant/unit to be shut-down/abandoned and/or replaced.…………………………………………
………………………………………………………………………………………………………
4. Effective date of disruption...……………………………………………………………………….
5. Estimated duration………………………………………………………………………………….
6. Reasons for disruption stated above (if necessary give reasons on a separate
attachment)………………………………………………………………………………………….
………………………………………………………………………………………………………
7. Nature of work to be performed (where applicable)………………………………………………..
………………………………………………………………………………………………………
8. *Plant/unit to be permanently/temporarily put out of commission………………………………….
9. *Plant/unit is to be replaced/not replaced by a similar plant………………………………………
10. Expected commissioning date of plant/unit (where applicable)…………………………………….
………………………………………………………………………………………………………
11. Brief history of abandoned plant (provide on a separate sheet if necessary)……………………….
………………………………………………………………………………………………………
12. I…………………………………….……………………………………………………………….
(Name of manager)
Certify that the above particulars are correct
………………………………………
Signature
Date…………………………………
*Delete where applicable

Hydrocarbon Processing and Refining Facility Regulations

Uploaded by

Copyright:

Available Formats

Hydrocarbon Processing and Refining Facility Regulations

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Hydrocarbon Processing and Refining Facility Regulations

Uploaded by

Copyright:

Available Formats

HYDROCARBON PROCESSING AND REFINING FACILITIES REGULATIONS,

Draft: October 27, 2022

PART 1- OBJECTIVES AND GENERAL PROVISIONS

PART 2 – LICENCE TO ESTABLISH A HYDROCARBON REFINING FACILITY

PART 3 – APPROVAL TO CONSTRUCT

9. Application for approval to construct

24. Pre-commissioning and Readiness for Start-up

PART 5 – LICENCE TO OPERATE

27. Application for licence to operate

PART 6 – PLANT OPERATIONS

28. Conformity Assessment

62. Reporting of accidents.

PART 8 – OPERATIONS SUSTAINABILITY

68. Greenhouse gas management

PART 9 – DECOMMISSIONING AND ABANDONMENT

72. Decommissioning and abandonment of hydrocarbon refining facility

PART 10 – OFFENCES AND FEES

PART 11- SUPPLEMENTAL PROVISIONS

1. The objectives of these regulations are to:

(a) regulate the operations of hydrocarbons refining facilities.

Authority to make Guidelines etc.

3. (1) Every application for a licence, permit or approval shall be made in a

(2) Application for a licence to establish, approval to construct and licence to

(3) No modification, decommissioning or abandonment of a Hydrocarbon

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

(7) Every such application shall be accompanied by a detailed study of the

(8) Subject to payment of prescribed fees and charges, evaluations of

(9) Every application for renewal of a licence shall be made in a manner

(10) The Authority may revalidate or extend a licence to establish or approval

PART 2 – LICENCE TO ESTABLISH A HYDROCARBON REFINING FACILITY

4. No person shall establish a hydrocarbon refining facility without a valid licence

Crude Oil Refining

(6) The Licencee shall:

Natural Gas Processing

(2) Activities of a licenced natural gas conditioning or refining plant shall be

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

(6) The operator shall:

7. (1) All applications for a licence to establish a petrochemical plant shall be

(2) Activities of a licenced petrochemical plant shall be conducted safely and

(5) The petrochemical plant shall produce petrochemical products, precursors,

Requirements For Licence to Establish

(1) Economic and financial analysis

PART 3 – APPROVAL TO CONSTRUCT

Application For Approval to Construct

9. (1) No person shall construct a hydrocarbon refining facility without a valid

Requirements For Approval to Construct

(a) Investment analysis and economic case studies;

Commercial Viability of Hydrocarbon Refining Facilities

11. The application in Regulation 10 of these regulations, shall be subjected to

Standards For Design, Construction and Inspection of Hydrocarbon Refining Facilities

Engineering and Technical Studies/Review

Design Optimisation or Modification

Environmental and Safety Considerations

(2) No new technology shall be deployed into hydrocarbon refining facility

Fabrication and Inspection

(2) Notwithstanding Regulation 17 (1) of these regulations, the Authority shall

Construction of Hydrocarbon Refining Plants

18. Notwithstanding Regulation 10 of these regulations, before any hydrocarbon

(b) in floating roof tanks, the minimum distance-

Functional and Integrity Tests