Petroleum Dpr

DEPARTMENT OF PETROLEUM RESOURCES

SERVICOM CHARTER

SERVICE PROFILE

(1) Permanent SecretaryMinistry of Energy:

Engr. M. S. Mahmud

Address: NNPC Towers,Block D, 10th FloorCentral Area, Abuja

Telephone: 09 – 5230921

(2) Director,Department of Petroleum Resources:

Mr. A. O Chukwueke

Address: Room 9119th Floor

7 Kofo Abayomi St.Victoria Island, Lagos.

Telephone: 01 – 2614123

(3) DPR Nodal Officer

Dr. D. Bijimi

Address: Room 8228th Floor

7 Kofo Abayomi St.Victoria Island, Lagos

Telephone: 01 – 26125880803307194408058298844

Email: [email protected]@yahoo.co.uk

mailto:[email protected]

mailto:[email protected]

1. INTRODUCTIONThe Department of Petroleum Resources (DPR) is the technical and regulatory arm of the Federal Ministry of Energy in charge of Petroleum Matters.

It is a leading provider of services in the oil and gas sector of the economy. These services include issuance of licenses, leases, permits. Others include supervision and monitoring of all activities in the oil and gas industry.

There are other types of services supplied by the Department that lead to the grant of oil prospecting and mining leases in addition to numerous others that serve Nigerian people and the international community.

The vital role of the oil and gas industry in the economics of the country coupled with the strategic excision of the DPR from the Nigerian National Petroleum Corporation (NNPC) in 1988 have turned the Department of Petroleum Resources into one of the nation’s largest, on yearly basis, revenue generators.

Also focusing on its core services with highly competent personnel has sustained its existence and success. In view of the foregoing and for the following needs, this charter has become very necessary for the Department, its staff and the public to:

Educate our customers on the benefits of the DPR as established in the statutes and ordinances of Nigeria.

Acknowledge the void in our services as a result of a non-conscientious participation by our customers in these services.

Help more and reach out to more people to access our services.Improve our delivery (outreach) service.Offer a platform that commits us to our customers in the delivery of our services.Inform our customers specifically of the availability of mechanism of redress and when,

where and how this mechanism can be accessed for the services the DPR provides.Comply with Government’s drive (our employer) for transparency, accountability,

efficiency and equity in all Government activities and organs.Prepare the DPR and our customers to meet the ever growing demand for the services in the

oil and gas industry by the Nigerian economy and people.Achieve one of the goals set for improvement in our services.

2 VISIONTo regulate the Oil and Gas Industry operations responsively, timely, effectively and transparently.

3 MISSIONTo monitor and supervise oil and gas operations to ensure the delivery of optimum benefits to the beneficiaries of the services, government and people of Nigeria.

4 CLIENTELEThe Department of Petroleum Resources owes its existence and success to its clients that include among others, the following:

The Federal Government.Oil and Gas Companies.Staff of the DPR.Federal Ministry of Energy.International Oil and Gas Organizations.Petroleum Equalization Fund (PEF)Petroleum Products Pricing Regulating Agency (PPPRA).Relevant Ministries/Agencies (Federal and State).Extra-Ministerial Departments.Educational/Research Institutions.Members of the Public.

5. ORGANIZATIONAL STRUCTURE

6 SERVICE PROVISION

The Department of Petroleum Resources services are available to all Nigerians who have requisite competency and capacity and are able to meet the conditions spelt out under each service.

The services by approvals, certifications, licenses, wavers and permits are refineries, liquefied petroleum gas, lubricating oil blending plants, filling stations, gas plants, drilling rigs, general purpose and special purpose category, etc. These are approvals, licenses and permits issuance for refineries (such as LTE, ATC and LTO), liquefied petroleum gas(LPG) plants, lubricating oil blending plants, filling stations, drilling rigs, general propose and special purpose categories.

While in other categories of services such as granting of concessions for oil and gas prospecting and exploration, occasionally, some blocks become available for bidding by interested and qualified companies(both local and international).And the number available at any time depends on so many factors.

In a similar vein, the amount of revenue generated and remitted in a year, which are also services rendered by DPR, depend on a number of factors such as the type of and amount paid for either or all of royalty, rental and penalty for gas flared; the number of filling stations, depots (both aviation and normal one), refineries and petrochemicals plants, lubricating blending/LPG plants, crude oil exporting terminals and FPSO/FSO, LNG facilities, products imported and vessels licensed in a year.

There are other services apart from those mentioned that also generate revenue. The total revenue generated is a reflection of a number of chargeable services as well as respective amounts derivable.

However, the Department this year and in the next couples of years shall improve upon the number and the quality of services provided in the last four years.

7 SERVICE DELIVERY

DPR service delivery shall in all cases conform to:a) Proximity of the area where such services can be provided.b) Standards and practices used both locally and internationally to set up and manage such

services.c) Expectations of the clients, government and public.

8 SERVICE PROXIMITY

To bring services closer to our customers, the Department of Petroleum Resources (DPR) has opened, and more will be opened with time, offices that serve as hub of its activities in the following States and the Federal Capital Territory (FCT) with their telephone numbers as follows:

Lagos (012614913),Oyo ( 022310814), Kwara ( 031228428 ), Ondo (034244710), Delta (053252601), Rivers (084233206), Akwa Ibom (085701518), Imo(083233903 ), Abia (082448308), Enugu (042251375), Benue (044531980), Adamawa (075626381), Gombe (072223721), Borno (076231502), Kano (064632387), Sokoto (060238423), Kaduna (062371931/062216474), Plateau(073464716), and Abuja(092349988).

9 SERVICE STANDARD

All the services provided by the DPR conform to, are and use these standards:

a) Easy, b) Unbiased, c) Unambiguous, d) ISO(International Standards Organization), e) API(American Petroleum Institute), f) IP(Institute of Petroleum, British), g) EGASPIN(Environmental Guidelines And Standards of the Petroleum Industry In Nigeria), h) Guidelines and standards internationally recognized especially by OPEC(Organization of Petroleum Exporting Countries), Mineral Oil Safety Regulations, 1963, as amended 1997 (MOSR).

10 STANDARD SERVICE REQUIREMENTS

One of the goals set by the Department is the improvement in the setting and monitoring of standards in the oil and gas industry as follows:

10.1 SCHEDULE OF SERVICE REQUIREMENTS, STANDARDS, PROCEDURES AND TIME - FRAMES FOR PROCESSING OF APPLICATIONS

10.1.1 ESTABLISHMENT OF PETROLEUM REFINERY,PETROCHEMICALS PLANT, LIQUEFIED NATURAL GAS(LNG) PLANT, DEPOTS AND GAS TREATING FACILITIES.

The general philosophy behind these requirements is to demonstrate Government’s concern in the implications of the industry such as:-

(a) Technical(b) Economic impact(c) Sociological impact(d) Maintenance provisions to protect health of operating staff(e) The Plant’s safety

10.1.1.1 Conceptual Study and Basic Design Requirements.Submission of application in company’s letter headed paper to the Director, DPR on behalf the Honorable Minister. The application should be accompanied by:-

A completed form, obtainable at DPR Headquarters. Copy of certificate of incorporation with Corporate Affairs Commission. Copy of Articles of Association and Memorandum of applicant’s company that

allows, specifically, for participation in petroleum products. A copy of approved Environmental Impact Assessment (EIA). A bank draft for application fee of US$50,000.00 payable to “Federal

Government of Nigeria – DPR Fees Account”. This will be acknowledged immediately with a payment receipt.

A copy of current Tax Clearance Certificate. A presentation to DPR Site inspection by DPR officials.

There will be site inspection by DPR officials on fulfillment of the above conditions. The inspection visit normally precedes presentation by company to DPR.

On fulfillment of these requirements, the Honorable Minister or his/her designate may grant license to establish the plant.

The validity of the License is two years after which it lapses.

For completeness of information, the conceptual study and basic design requirements are provided as follows:

(a) Conceptual study

Site of project Product slate Crude oil or feedstock Short assay of proposed crude oil / feedstock. Capacities and process configurations in block flow. List of process technologies and licensors. Technical partners and their job reference. Crude oil or feedstock supply. Products evacuation scheme. Preliminary environmental impact statement. Safety provisions. Infrastructural support strategy. Organization plan. Staff training plans and financial plan.

(b) Basic design

State design philosophy. Preliminary process flow diagram of the process units. Fiscalisation system for crude oil (feedstock) and products and proving procedures. Preliminary land/plot plan. Proposed project implementation schedule and process hazard analysis and hazard

identification (HAZID).

10.1..2 PROCEDURE AND TIME - FRAME FOR PROCESSING APPLICATION TO ESTABLISH A PETROLEUM REFINERY, PETROCHEMICALS, DEPOTS AND GAS PROCESSING PLANTS.

S/NO PROCEDURE TIME IN (DAYS)MINIMUM MAXIMUM

1. Receiving Documents With Statutory Fees 1 1

2. Review of Submitted Documents 1 73. Contact Applicant for Incorrect

Documentation 2 74. Get Applicant Response 3 55. Invitation for Presentation By

Applicant 2 56. Review of Presentation And

Report Writing 1 27. Visit to Proposed Site(s) By DPR

Officials 1 28. Submission of Inspection Report 2 29. Recommendation and Review Of

Inspection Report 3 710. Conveying Recommendation Of

Successful Applicant To The HonorableMinister for Approval 4 14

11. Communicate With Applicant 1 1

Total No of Days 21 53

LICENCE TO OPERATE (LTO)

The license is be obtained within 30 days of commissioning (a) PETROLEUM REFINERY, PETROCHEMICAL PLANT

Submission of an application on company’s letter headed paper to the Director, DPR on behalf of the Honorable Minister informing of mechanical completion and requesting for inspection. The application should be accompanied by a non-refundable US$100,000.00 Bank Draft and will be acknowledged immediately with payment receipt.

Inspection of completed plant by a team of DPR officials.

(b) PRODUCTS DEPOTS AND JETTIES

Submission of application on company’s letter headed paper to the Honorable Minister through the Director, DPR. The application is to be accompanied by the following:-

A master plan drawn to scale, showing the site of the installation and the design of the storage shed, tanks and facilities in all respect in sufficient details and any other relevant information that may enable the project to be fully understood.

The description and quantity of petroleum products which the applicant desires to store and the manner in which it will be stored, whether by surface or underground storage arrangements.

The name and location of the proposed depot or jetty, the location shall fulfill the provisions of sections 36 and 39 of the Petroleum Regulations of 1967 as applicable to the installation.

Codes, Standards and Specifications to be adopted in the design of the plant with specifications of equipment and facilities to be installed.

Detailed description of laboratory facilities and equipment to be used for products quality control, and test methods to be used.

ACCOMPANYING DOCUMENTS

The following documents must accompany every application for approval to construct a petroleum product depot:

o Copies of the depot plan showing the existing or proposed building on the site and in relation to the site of roadways, water ways, rail roads, electrical distribution, Oil Pipeline right of way and adjoining property.

o Copies of equipment layout including all Piping & Instrumentation drawings (P&IDs) of the proposed depot or modifications. A COREN registered engineer must stamp all these drawings.

o Copies of Fire Service report indicating that the proposed arrangements for prevention of fire and containment of emergencies are satisfactory.

o Copies of Police Report indicating that the proposed site and operations of the depot will not constitute any traffic problems.

o Copies of letter of consent and approval from the Town Planning Authority. The Town Planning Authority stamps on all the Depot or Jetty project buildings drawings are acceptable.

o Copy of approval from Nigerian Port Authority and Inland Water Ways (for jetty).

o Certificate of Incorporation of the company.

o Certified copies of Memorandum and Articles of Association of the company.

Copies of tax receipt or tax clearance certificate for the proceeding three years. A tax exemption certificate issued to a newly incorporated company is acceptable.

Environmental Impact Assessment of the proposed project

Detailed Safety Case proposals for the depot project which shall be reviewed every 3 years

Effluent and solid waste disposal management plan

A certified cheque or bank draft of a stipulated non-refundable application Fee.

The following integrity tests are made mandatory after construction:

o Leak test for the storage tankso Calibration of tankso Meter Provingo Vacuum box test.

(c) LUBRICATING (LUBE) BLENDING PLANT

Submission of application on company’s letter headed paper to the Honorable Minister through the Director, DPR. The application is to be accompanied by the following:->Prescribed license fee in Bank Draft made payable to the “Federal Government of Nigeria DPR Fees Account”.

>Photocopy of approval to construct the plant.

>A copy of product formulation and specification approved by Standards Organization of Nigeria (SON).

A copy of the third party blending agreement (in case of companies without plants – entered into with the blending company. The agreement must have been cleared with the DPR and submitted in a legally executed form.

Evidence of ownership or management of licensed retail outlet or supply agreement to licensed end - users for companies seeking third party blending agreements.

A copy of the products trade name(s) registration with Federal Ministry of Trade (Commerce).

A copy of approved EIA. A copy of final Fire Clearance Certificate signed by Fire Officer or any Officer

designated by him/her, that he/she is satisfied with the provisions for prevention and containment of fire at the plant.

A copy of set of plant operating manual Submission of copy of company’s Certificate of Incorporation with Corporate Affairs

Commission. Submission of copy of company’s Articles of Association and Memorandum which

allows company, specifically, to deal in petroleum products. Submission of company’s Current Tax Clearance Certificate for the past three

years from the Federal Inland Revenue Services. A Pre – commissioning inspection of the plant shall be carried out before the

License can be granted on the satisfactory outcome of the confirmatory inspection.

(d) LIQUIEFIED PETROLEUM GAS (LPG)Statutory requirements which are:-Certificate of Incorporation with Corporate Affairs Commission (1 copy)Application on company’s letter headed paper for license to operate to the Director, DPR.A copy of company’s approval to construct or Approval to lease.Copies of approval plans of the plant and its facilities.A copy of Fire Clearance Certificate from Fire Service(Federal or State)A copy of Articles of Association and Memorandum of company’s stating that company

can deal in petroleum products.A copy of approved EIA.A copy of company’s Current Tax Clearance Certificate for the past three years.Radiographic data Report of the storage tanks.A copy of pressure test certificate of the tanks endorsed by a staff of the DPR who

witnessed the exercise.

Technical requirements:Mechanical Leak testerDecanting systemGas leak detectorCylinder maintenance facilitiesReference weighing scale

Emergency shutdown systemPower source, both National grid and Standby supply.Adequate fire fighting facilitiesLightning and earth protective devices.Brick wall perimeter fence, greater than 1.5m high.

(e) COMPRESSED NATURAL GAS (CNG) Submission of application for storage / sale license to the Director, DPR. The

application shall be accompanied by the following:- A copy of approval to construct (ATC). A copy of Certificate of Incorporation from the Corporate Affairs Commission. A copy of Articles of Association and Memorandum stating the right of company to

deal in petroleum products. A copy of Fire Clearance Certificate (Federal or State). A copy of company’s Current Tax Clearance Certificate for the last three years. A copy of approved EIA. Approved plans. Photographs of the station. A copy of pressure test certificate that was endorsed by DPR official. A copy of gas leak test report endorsed by DPR official.

Provisions of the following:- Air compressor and air gauge in good working condition. Provision of water (Pipe borne) well treated borehole. Public convenience Well stocked first aid box Fire fighting equipment. Evidence of trained pump attendants from an organization recognized by the DPR.

10.1.4 PROCEDURE AND TIME -FRAME FOR PROCESSING APPLICATION FOR LICENCE TO OPERATE (LTO) FOR SECTION 7.1.3 (a), (b), (c), (d), (e) ABOVE

(a) PETROLEUM REFINERY, PETROCHEMICALS PLANT & DEPOT

S/NO. PROCEDURE TIME FRAME IN (DAYS)

MINIMUM MAXIMUM1. Receiving Of Documents With

Statutory Fees 1 12. Pre-commissioning Inspection 5 73. Submission Of Pre-commissioning

Report 2 24. Contact Applicant For Incorrect

Documentation And Observed Shortcomings During Pre-Commissioning Visit 2 5

5. Get Applicant's Response 5 106. Review Of Submissions With

Recommendation 3 57. Conveying Recommendation Of

Successful Applicant To TheHonorable Minster For ApprovalFor L.T.O 4 14

TOTAL NO OF DAYS 22 44

(c) - (e) OIL BLENDING, COMPRESSED NATURAL AND LIQUEFIED PETROLEUM GAS

S/NO PROCEDURE TIME FRAME (IN DAYS)MINIMUM MAXIMUM

1. Receipt Of Application To License 1 12. Review Of Documents 1 23. Contact Applicant For

Incorrect Documentation 1 34. Get Applicant’s Response 1 55. Payment Of License Fee By

Applicant 2 56. Submission Of Report With

Recommendations To SuperiorOfficer 2 5

7. Handling Of RecommendationFor Or Against License To Operate 2 2

8. Contact Applicant 3 59. Packaging Of File To Licensing

Division/Branch 3 5

TOTAL NO. OF DAYS 16 33

10.1.5 OIL PROSPECTING LICENCE (OPL) Prospective applicants must participate in either open competitive or selective

bidding (tendering) when blocks are advertised. Bidding firm must have certificate of Incorporation from Corporate Affairs

Commission (Supply one copy)

Must have Current Tax Clearance Certificate of Federal Inland Revenue Services (submit one copy)

Submit one copy of Articles of Association and Memorandum that permits dealing solely in prospecting, exploration and production (E and P) of crude oil, and initial share capital of 1 Billion Naira or Ten Million U.S dollars ($10,000,000) and above with evidence for this from a reputable and international bank.

Bidding is accompanied by:

Payment of US$10,000.00 non-refundable and another US$10,000.00 bidding fee, all in Bank Draft payable to “Federal Government of Nigeria – PTDF A/C”.

Another US$25,000.00 or US$1,000,000.00 per block is paid to either view or buy respectively, seismic data of a block.

Completed bidding application form:- Form A. The form should state among other things, Block applied for, proposed petroleum arrangement and how much premium in United States dollars the company is prepared to pay for the block.

Memorandum of understanding (MOU) between the indigenous companies and their foreign partners in the case of indigenous companies interested in applying.

Successful firm in the bidding exercise pay signature bonus of between US$5,000,000.00 to over US$200,000,000.00 per block.

Oil prospecting License (OPL) is for Onshore and Continental shelf and range in sizes from 1 to 2,590 sq. km. OPL is for a maximum duration of ten (10) years.

Oil prospecting license attracts licensing fee of =N=500,000.00 for the period of the whole ten(10) years for deep water block and frontier basins, and a total of (5) years for inland basins. The license is only given when the firms starts to produce oil.

10.1.6 PROCEDURE AND TIME - FRAME FOR PROCESSING APPLICATION FOR OIL PROSPECTING LICENCE (OPL)

S/NO. PROCEDURE TIME FRAME IN (DAYS) MINIMUM MAXIMUM

1. Government initiates a process ofPeriodic open/selective competitive bidding 180 1,800

2. Advertisement by DPR in Newspapers/

Magazines and international publications Approved by Federal Government 30 90

3. Evaluation of Bids 30 304. Recommendation to HM of successful

Application for approval 7 145. Announcement of Winners by HM 1 16. Negotiation of Production Sharing

Contract 30 1807. Payment of signature Bonus and other

Award Fees 1 908. Issuance of Revocation notice to

Successful Applicants unable to pay thesignature Bonus at the expiration of theNinety (90) days period 1 30

9. Failure to pay signature Bonus and otherAward fees after expiration of Thirty (30)Days of Revocations notice invalidate Award

TOTAL DURATION 280 2,235

10.1.7 OIL MINING LEASE (OML)

Conditions for qualification are:-Submission of application to the Director, DPR.

The application must be accompanied by:- A copy of the firm’s oil prospecting license (OPL). A copy of approved EIA. Evidence of exploratory activities already carried out in the block (parcel). Evidence of discovery of crude oil in the range of 10,000 to 25, 000 barrels per day. Plan to develop block.

Bank Draft of US$500,000.00 payable to “Federal Government of Nigeria – DPR Fees Account”. Oil mining lease have a life span of twenty (20) years.

10.1.8 PROCEDURE AND TIME FRAME FOR PROCESSING APPLICATION FOR OIL MINING LEASE (OML)


MINIMUM MAXIMUM1. Receipt of application for grant of OML 1 2

2. Statutory fee cheque is forwarded to Accounts Division for issuance of receipt 1 2

3. Application forwarded to US Div. to confirm producibility, and applicationreturned to BA/LA for processing. 5 7

4. BA/LA reviews and evaluates Applicationagainst requirements such as data acquisition, drilling operations and productions level 5 7

5. Applicant may be contacted forprovision of details that were incompleteor incorrect 4 7

6. Response of applicant to DPR’s queryon information provided 5 7

7. Application is reviewed and processedAnd recommendation made for approvalor non-approval 5 7

8. Recommendation is forwarded to HM 4 14

TOTAL DURATION 30 53

10.1.9 ASSIGNMENT OF INTEREST

Possession of a block means a company must have OPL or OMLSubmit an application to the Director, DPR to assign interest to a third party.

The application should be accompanied by:o Statutory requirement of a =N=500,000.00 in favor of “Federal Government of Nigeria

– DPR Fees A/c”.o Copies of documents or evidence to prove ownership.o Evidence that the new assignee is registered with Corporate Affairs Commission, o Pays taxes in Nigeria, i.e a copy of Tax Clearance Certificate, o Must not currently be using the services of the Technical Partner.o Technical Partner must be acceptable to the Federal Government.o Be of good reputation or is a member of a group of companies or is owned by a

company or companies of good reputation.o Is legally allowed to participate in exploration and production of crude oil, o Technical competence or financial capability or botho The maximum 40/60% (foreign/indigenous) participating interest needs to be

maintained.

On successful outcome of the application, the Honorable Minister grants the Assignment of Interest (AOI).

10.2 PROCEDURE AND TIME FRAME FOR PROCESSING APPLICATION TO ASSIGN PARTICIPATING INTEREST

S/NO. PROCEDURE TIME FRAME IN (DAYS) MINIMUM MAXIMUM

1. Receipt of application 1 12. Statutory fee cheque is forwarded to

Accounts Division for Issuance ofReceipt 1 2

3. BA/LA Reviews and evaluates application against requirements suchas OPL/OML of applicant and technicaland financial competence of intended Partner 7 30

4. Applicant may be contacted for provision of details that were notcomplete or incorrect 4 7

5. Response of Applicant to DPR’s query on information 5 7

6. Verification and review of JOA ofthe assignor and assignee to ensureamong others the 40/60% level FederalGovernment requirements 5 14

7. Contact applicant on some areasof the JOA 4 7

8. Response of applicant to query areasin JOA highlighted by DPR 7 14

9. Application is reviewed and processed and recommendation made for approvalor non-approval. 3 5


10.2.1 RIG LICENCESubmission of an application to the Director, DPR. The application in company’s letter

headed paper should be accompanied by:- Completed application form (obtainable from DPR) by the firm. Annual condition survey report by an internationally recognized company or body. A copy of immediate past rig license. A copy of Current Permit of Applicant company to operate as an oil industry service

company. A copy of list of expatriate / indigenous staff.

Indigenous Manpower Training / Development Program A copy of Report of Pre- License Rig Inspection carried out by the appropriate DPR

office. Application fee Bank Draft of =N=20,000.00 per rig payable to “Federal Government

of Nigeria – DPR Fees A/C”. Bank Draft of =N=100,000.00 payable to “Federal Government of Nigeria – DPR Fees

A/c”. A copy of Applicant’s Current expatriate quota permit.

A copy of the company’s income tax clearance certificate for the immediate past three years.

10.2.2 PROCEDURE AND TIME FRAME FOR PROCESSING OF RIG LICENCE

S/NO. PROCEDURE TIME FRAME IN (DAYS)MINIMUM MAXIMUM

1. Receipt Of Application 1 12. Review Of Application 1 33. Contact Application Defects

In Application 3 74. Applicant’s Response

to DPR’S query 2 75. Pre-licensing Inspection By

DPR Field Office 14 286. Writing And Submitting Of Pre-

Licensing Inspection Report 2 87. Review Of Inspection And

Recommendation To Grant Licence 1 3

8. Approval Of Recommendation 1 39. Preparation And Signing Of

Licence 1 3TOTAL NO. OF DAYS 26 63

10.2.3 OIL/GAS PIPELINE LICENCE REQUIREMENTSSubmission of application for oil and gas pipeline in duplicate copies to the Director, DPR accompanied with:

• Plans• Draft notices• Full description of the route of the proposed pipeline• Bank draft of =N=50.00 made payable to the “Federal Government of

Nigeria – DPR fees A/C”• Where the pipeline route passes two or more states, two additional copies

each of the application should be submitted in respect of each of the States.

• Copy of OPL/OML (for crude oil) and LTO (for Refinery/Depot in case of petroleum products).

• Copy of company’s current Tax Clearance Certificate for the last three years.

• Bank Draft of N200.00 p.a as payment of ground rent payable to “Federal Government of Nigeria - DPR Fees A/C”.

• Submit evidence of possession of permit to survey• Evidence that the survey of the proposed route has been completed.• Topographical maps• List of proposed contractor(s)• Hydraulic Profile

10.2.4 PROCEDURE AND TIME -FRAME FOR PROCESSING OF APPLICATION FOR OIL/GAS PIPELINE LICENCE

S/NO. PROCEDURE TIME FRAME IN (DAYS)MINIMUM MAXIMUM

1. Receipt Of Application and filing of Same In the relevant permit to survey file 1 1

2. Processing of the Application to the stage of issuing receipt to the Applicant for payment made. 1 1

3. Forwarding the receipt undercover of standard letter No. 31 1 2

4. Processing the application to thestage of forwarding the statutorynotice to the Federal GovernmentPrinter with request for publicationin official gazette on a date not lessthan twenty-eight (28) days ahead,agreed between the DPR and the Government Printer. 30 60

5. Forwarding of application copy toState Authority with request forpublication on same date 7 14

6. The Applicants are asked to arrangepublication in the newspapers on the same date with the date of hearing of

objections inserted in the body of the notice. Six weeks from date of publication is the duration of hearingof objection. 14 20

7. Objection Hearing 42 56

8. A copy is sent to the State Authorityunder cover of standard letter No.34asking for objections and publication on same date with that of Government Printer. 14 20

9. A copy is sent to the Operations Controller of area concerned andrequested to file his/her objection to the application within four (4) weeks 7 10

10. Plotting in pencil the proposed routein the oil concession map 14 28

11. Sending Reminders to State Authorityand Operations Controller(s) a weekbefore the date of hearing if there is

no report from the state authority and local operations controller(s) 1 2

12. Writing of report and recommendationfor the issuance of oil pipeline incenseaccompanied by a prepared oil pipelinelicence in quadruplicate with the plans and scheduled attached 7 14

13. Approving and signing of licence 2 4

14. Applicant is informed of the approvaland signing of the licence through standard letter No. 35 that also asks him/her to send fees Bank draft ofN200.00 and the first annual fee, calculating in line with section 30

of the oil pipeline act 5 10

15. Forwarding of payment receipt of licence and first annual fee undercover of standard letter No: 35 2 4


10.2.5 PERMITS FOR EXPLORATORY / APPRAISAL/DEVELOPMENT.

(i) APPROVAL PERMIT FOR EXPLORATORY WELL LOCATION

Submission of an application to the Director, DPR.

The application should be accompanied by:- A copy of oil prospecting License. A copy of structural map. A copy of approved EIA. A copy of well location co-ordinates. Copies of seismic data line. Bank Draft of =N=5,000.00 payable to “Federal Government

of Nigeria – DPR Fees A/C”.

(b) APPRAISAL / DEVELOPMENT DRILLING

The firm to submit application to the Director, DPR along with:- OPL/OML. A copy of structural map. Bank Draft of =N=5,000.00 application fee payable to

“Federal Government of Nigeria – DPR Fees A/C.” Information on location where well will be sited in the parcel

(block). A copy of approved EIA.

10.2.6 PROCEDURE AND TIME FRAME FOR PROCESSING APPLICATION FOR PERMIT FOR EXPLORATORY WELL LOCATION/APPRAISAL/ DEVELOPMENT DRILLING


MINIMUM MAXIMUM1. Receipt of application to drill

a well 1 22. A Bank Draft forwarded to accounts

Division 1 13. Processing of the application

and grant of approval 14 21


10.2.7 APPROVAL TO CONSTRUCT (ATCs)

(a) PETROLEUM REFINERY, PETROCHENICAL PLANT AND GAS PROCESSING PLANTS

Submission of an application on Applicant’s letter headed paper to the Director, DPR.

The application should be accompanied by: Detailed engineering drawings covering Process

Technologies, Process flow Diagram (PFD), Piping and Instrumentation Diagram (PID), Utilities, Plot Plan, offsite and waster water treatment facilities.

Environmental Impact Assessment (EIA) Report. Presentation of detailed Engineering Design and

Construction work schedule to DPR Headquarters. Expression of commitment of participation of DPR engineers

in monitoring project/construction work including project review meetings, HAZOP, FAT, etc

b) Liquefied Petroleum Gas (LPG) Plants

Submission of application to construct/modify /install additional facility to Director, DPR headquarters.

3 copies of approval plan drawings showing existing or proposed buildings on site and relative distances to roadways and adjoining properties.

A copy of approved EIA. Piping and instrumentation diagram of the gas filling plant and sectional drawings of

storage tanks. Copies of codes, standards and specifications adopted in the design of the tanks. Non-destructive Examination Report or Pressure test report of storage tanks. Copy of Articles of Association and Memorandum of company authorizing applicant to

deal in petroleum products. Copy of Certificate of Incorporation with Corporate Affairs Commission. Copy of

current 3 years Tax Clearance Certificate.

Copy of Certificate from Chief Federal/State Fire Officer expressing satisfaction with proposed arrangements for prevention and containment of fire.

A letter from the Town Planning Authority expressing non-objection to the siting of the plant in the proposed site.

Payment of application fee of N10,000.00 in bank draft in favor of “Federal Government of Nigeria,- DPR Fees Account”.

(c) Lubricating Oil Blending/Recycling Plant for the Manufacture of Lube Oil. Submission of application to Director, DPR. A copy of approved EIA. Description of proposed formulations, specifications,

classifications, grades, Trade Names, and identifications of products to be made.

Description of proposed laboratory and test methods to be used.

Proposals for effluent handling and disposal methods. Copies of codes, standards and specifications to be adopted in

the design of the plant with specifications of equipment and facilities to be installed.

Two copies of piping and instrumentation diagrams of the blending/recycling plant and sectional details of the storage tank.

Two copies of design drawings of the plant specifying the relative distances in meters between plant and adjoining properties.

A copy each of Certificate of Incorporation and Articles of Association and Memorandum of the company.

A copy Certificate from the Fire Service (Federal State) expressing satisfaction with arrangements at the proposed site for prevention and containment of fire.

A letter from the Town Planning Authority approving the site for the proposed plant.

A copy of Tax clearance Certificate of the applicant for the last 3 years.

The prescribed application fee as from time to time determined by legislation (but presently N10,000.00) in a certified bank draft in favor of “Federal Government of Nigeria – DPR Fees Account”.

A copy each of the certificate of registration of Trade Names and descriptions under which the company proposes to market the lubricating oil.

Required volume of base oils per year for blending the grades and classifications of lubricating oils applied for.

(d) Compressed Natural Gas (CNG) Refueling Station. Submission of application to Director, DPR stating the details

of the proposals and any other relevant information. A copy of approved EIA. Three (3) copies of a plan showing proposal on existing

building on the site and relation of site to the roadways and adjoining property.

Three (3) copies of layout drawings showing the location of equipment in relation to CNG storage tank and petrol station, if any.

Three (3) copies of sectional design drawings of the storage tank(s) showing detailed specifications.

Three (3) copies of piping and instrumentation diagram of the CNG refueling station.

A Certificate of satisfaction of arrangements to prevent occurrence of fire from the Fire Service (Federal or State).

A certificate of authority certifying the site of proposed station.

A copy of letter from the Divisional Police Officer or Superior Police Officer In-Change of Police Motor Traffic expressing satisfaction with the site of proposed CNG station not being a traffic hazard.

A copy each of Certificate of Incorporation, and Articles of Association and Memorandum of company allowing it to deal in petroleum products.

A copy of Tax Clearance Certificate of last three (3) years.

(e) Petrol Filling Station A prospective applicant must register with Corporate Affairs

Commission (C.A.C) and obtains Certificate of Incorporation, Articles of Association and Memorandum which allow him/her to specifically deal in petroleum products.

Applicant acquires a piece of land. Applicant intimates the nearest DPR office covering the state

of intended plot of land of his wish to site a filling station in the plot.

Plot of land for proposed filling station meets DPR regulations of minimum distances from adjacent stations and adjoining property.

Plot of land for proposed filling station does to meet DPR regulation. Applicant is told to look for another plot of land.

Successful applicant submits application for approval to construct (ATC) to the Operations Controller of DPR in the Area of proposed station.

A copy of approved EIA. Submission of three (3) copies of Approved Plans showing

office/store/convenience building, pump islands, electrical wiring, standby source of power and source of water.

Submission of copy each of Certificate of Incorporation, Articles of Association and Memorandum of Company.

A copy of confirmed letter of approval of site from the Town Planning Authority.

A copy of certificate from the Fire Service (Federal or State) expressing satisfaction with the proposed arrangement for fire prevention at the proposed station.

A copy of letter from the Divisional Police Officer or Police Officer In-Change of Motor Traffic Section of Police informing of the fact that the proposed station will not constitute a traffic hazard especially the drives in/out of the station or locations of the pump islands.

A copy of Tax Clearance Certificate for the last three (3) years of company applicant.

On fulfillment of the above conditions, the Operations Controller directs an Inspector to inspect site of applicant and submit a report with which he can grant an ATC when the inspection report confirms the suitability of the site.

During construction, DPR officials to continually monitor the work as to it confirming to submitted approved plans.

10.2.8 PROCEDURE AND TIME FRAME FOR PROCESSING APPLICATION FOR APPROVAL TO CONSTRUCT (ATC)

(a) PETROLEUM REFINERY AND PETROCHEMICALS PLANT


MINIMUM MAXIMUM1. Receipt of document 1 12. Review of submitted

document showing final process configuration and detailed material balance 5 7

3. Review of detailed engineeringDrawings, i.e P I & D of the process units, utilities and offsite electric single line and control system logic diagram 7 14

4. Contact applicant for incorrector incomplete documentation 2 7

5. Invitation to applicant for presentation 2 7

6. Presentation to the Departmentby applicant 1 1

7. Review of presentation and writing of report 1 2

8. Review of other submissions andrecommendation 7 7

9. Conveying of recommendation ofsuccessful application to theHM for approvalto construct (ATC) 4 14

TOTAL DURATION OF TIME 30 60

(b) LIQUEFIED PETROLEUM GAS (LPG)


MINIMUM MAXIMUM1. Receipt of application 1 12. Assessment of documents 3 73. Contact applicant for incomplete

or incorrect documentation 2 54. Arrangement for site inspection 1 25. Site inspection 1 36. Submission of inspection report 1 27. Review of submission and inspection

report and recommendation 2 78. Processing (handling) of

recommendation for approval against approval to construct 3 3

9. Conveying of approval or non-approval to construct to applicant 2 7


(c) LUBRICATING OIL BLENDING/RECYCLING PLANT FOR MANUFACTURE OF LUBE OIL



or incorrect documentation 2 34. Payment of fees for correct

documentation and issuanceof payment receipt 1 2

5. Site inspection, depending onlogistics 1 3

6. Submission of inspection report 2 37. Presentation of project by

applicant to DPR 1 18. Review of submission and

presentation of reports withrecommendation 7 10

9. Handling of recommendationfor or against approval to construct 3 4

10. Implementation of approval ornon-approval to construct 1 2

11. Conveying (communicate) approval or non-approval toconstruct to applicant 1 2


(d) COMPRESSED NATURAL GAS (CNG) REFUELLING STATIONS


MINIMUM MAXIMUM1. Receipt of application 1 1

2. Assessment of documents including minuting them towhoever is to handle 7 14

3. Contact applicant for incompleteor incorrect documentation 2 3

4. Site inspection by DPR officials,which depends on logistics 1 3

5. Submission of inspectionreport by DPR officials 2 3

6. Review of report of inspectionand recommendation for oragainst approval to construct 10 10

7. Conveying of approval or non-approval to construct to applicant 2 3


(e) PETROL FILLING STATIONS/NO. PROCEDURE TIME FRAME IN (DAYS)


or incorrect documents 3 74. Response of applicant to demand

for completion of documentation 14 215. Site inspection by DPR officials 1 26. Submission of inspection report

and recommendation 2 37. Handling of recommendation

for or against approval 2 38. Implementation of approval or

non-approval 1 19. Conveying of approval or

non-approval to applicant 2 3


10.2.9 PERMIT TO SURVEY PIPELINE ROUTE

Submission of application for Permit to survey to the Director, DPR. The application should be followed by:

Bank Draft of N20.00 as application fee payable to “Federal Government of Nigeria – DPR fees A/C”.

A Copy of current permit to operate as an oil industry service company. A copy of Topographical Map of the proposal route A copy of Applicant’s current Tax clearance certificate for the past three (3) years.

10.3 PROCEDURE AND TIME FRAME FOR PROCESSING APPLICATION FOR PERMIT TO SURVEY PIPELINE ROUTE


MINIMUM MAXIMUM1. Receipt of application and filling

of same 1 12. Processing of the application to the

stage of issuing receipt to applicant for payment made 1 1

3. Forwarding the receipt under cover of standard letter No. 31 1 2

4. Processing the application to the stage of asking for non-objection fromthe Operations Controller(s) of thearea of route and the ministry of landand survey of the state of the route by use of standard letter No. 32 5 21

5. Wait for response from the OperationsController(s) and the state Ministry of land and survey 21 37

6. Reminder to Operations Controller(s)state ministry of land and survey whereno response has been received 14 28

7. Compilation of report and recommendation of issuance of permitas the case may be to the Director 10 15

8. Preparation of the permit in duplicate for signature 9 11

9. Submission and signing of permit 1 2


10.3.1 REQUIREMENTS FOR ISSUANCE OF LICENCES

(a) Filling StationAfter completion of filling station work, an application should be submitted to the

Operations Controller, DPR from where an ATC was obtained. The following documents should accompany application.

Original pressure test certificate and report signed by DPR official who witnessed the pressure testing exercise

b) Filling Station Change of Ownership A prospective marketer may decide to buy an existing station in which he/she only seeks for change of ownership. Submission of application for change of ownership to the Operations Controller of the nearest DPR Office along with following documents:

Release letter from former owner to the new owner copying the same letter to DPR. Surrender of original copy of DPR Storage/Sale License of the station. A buy-out Agreement between former owner and new owner duly registered and

stamped in a count of law. Completed storage/sale license application form. Current Tax Clearance Certificate of last three years. List of Trained Staff.

The Operations Controller will direct for an inspection to be carried out and report together with duplicate copy of receipt accompanying the application will be forwarded to DPR head office for issuance of new license.

Completed storage/sale license application form. Certified Bank Draft in favor of “Federal Government of Nigeria – DPR Fees Account”.

The amount of the Bank Draft normally depends on the quantity of petroleum products to be stored in the station when all the tanks (underground tanks) are full, quantity of lube oil, quantity of liquefied Petroleum gas (LPG) and the application fee for Approval to Construct. Before writing the Bank Draft applicant in advised to contact the Operations Controller who will tell him of the exact amount due for the proposed filling station.

Four clear copies of photograph of the station showing front, each side way and the back of the station.

Copy of current Tax clearance certificate. List of Trained Staff to man the station. A copy of approval to construct the station.

On receipt of the application and accompanying documents, the Operations

Controller will direct an officer to carry out a final inspection of the station and submit a report which will accompany the document and application to DPR head office for issuance of License.

10.3.2 PROCEDURE AND TIME - FRAME FOR PROCESSING APPLICATION FOR ISSUANCE OF LICENCES

(a) PETROL FILLING STATION

S/NO PRODCEDURE TIME FRAME (IN DAY) Minimum Maximum

1. Receipt of application 1 12. Assessment of documents 2 33. Contact applicant for incomplete

or incorrect documents 2 54. Payment of storage/sales/

application fee correct documentsand issuance of payment receipt 2 3

5. Inspection of station by DPR officials, this depends on logistics(pre-license inspection) 2 3

6. Submission of inspectionreports to Operations Controller 1 2

7. Review of pre-license inspectionreport, fees payment, recommendation and other documents of station 1 2

8. Conveying of application toDownstream Division, DPRHeadquarters. This depends on a member of factors suchas funds, number of applicationsready for submissions, etc 7 14

9. Head, Downstream office implementationprocess will check document before sending to Retail Outlet Branch 2 3

10. Retail Outlet Branch handles documents before passing to Licenses & Permits Branch2 3

11. Licenses & Permits Branch handling beforereturning application to Retail Outlet Branch1 2

12. Retail Outlet Branch confirmingand returns to L & P Branch the list 1 1

13. L & P Branch forwards the printedNew Licenses to Director for signing 1 2

14. Director signs license. This

depends on the number availablefor signature which is usually50 (fifty) 2 3

15, Licenses are conveyed to thefield office of origin on monthlybasis through the Operations Controller of the Zonal Office 14 21


(b) CHANGE OF FILLING STATION OWNERSHIP

Same as 7.3.1 (a) above

10.3.3 REQUIREMENTS FOR ISSUANCE OF KEROSINE PEDDLING PERMIT .

This service is available at all DPR offices.

Applicant must be an owner of a storage/sale license and a copy of storage/sale license must accompany application.

To accompany application also are the following:

Particulars of truck to be used including calibration papers. List of proposed areas to be covered by the permit. A bank draft for N5,000.00 payable to “DPR Fees A/C”

On receipt of the documents the vehicle in inspected by an official of DPR and if the outcome of the inspection in satisfactory, a peddling permit is issued by the Operations Controller. The permit has a life span of 12 months; ie.

January to December of the same year.

10.3.4 PROCEDURE AND TIME-FRAME FOR PROCESSING APPLICATION FOR KEROSENE PEDDLING PERMIT

S/NO PROCEDURE TIME FRAME (IN DAYS)

Minimum Maximum

1. Receipt of application 1 12. Forwarding of application

to Accounts Division forIssuance of paymentreceipt 1 1

3. Return of applicationfrom Accounts Divisionto processing Officer 1 1

4. Review and recommendationof application and contactingapplicant for incomplete orincorrect documentation 2 3

5. Response of applicant toDPR’s query. 1 2

6. Arrange for vehicle inspectionby DPR officials 1 1

7. Inspection of vehicle byDPR officials. This depends on logistics 1 2

8. Writing and submitting reportand recommendation to Operations Controller 2 2

9. Approval of recommendationby Operations Controller andreturning of application to officer writing permits 1 1

10. Submission of permit toOperations Controller forsignature, and signing sameby Operations Controller 1 1


10.3.5. INDUSTRIAL CONSUMERS LICENCE This class of license provides for storage only and for internal consumption of companies/firms/agencies (including government ones Federal/State/Local Government)

that have large fleet of vehicles.

Submission of application. The application should be accompanied by: A Certificate of Incorporation with Corporate Affairs Commission, only applicable to

private firms and corporate government agencies.

A copy of Articles of Association and Memorandum – applicable to only non-governmental incorporated firms.

A copy of current Tax Clearance Certificate of company A copy of Pressure Test Certificate duly endorsed by DPR official who witnessed

the exercise. Photographs of the storage tanks and supporting facilities.

Facilities to be licensed should have the following:

Pumps Dry sand buckets Functional Fire Extinguishers, fixed location. Functional Mobile Fire Extinguishers Provision of “No-smoking” signs in strategic and highly inflammable areas. Provision for oil spill containment. Vehicles Park is not less than 25 meters away from storage tanks that are above ground surface

10.3.6 PROCEDURE AND TIME - FRAME FOR PROCESSING OF APPLICATION FOR INDUSTRIAL CONSUMER’S LICENCE

S/NO PROCEDURE TIME FRAME (IN DAYS)Minimum Maximum


to Accounts Division forissuance of payment receipt 1 1

3. Return of application toprocessing Officer fromAccounts Division 1 1

4. Review of application byprocessing Officer 1 2

5. Contact applicant forincomplete or incorrectdocuments by processingofficer 2 4

6. Applicant’s response toquery by DPR 3 5

7. Review of application andsubmission of recommendation 2 3

8. Confirmation of recommendation by OperationsController 1 1

9. Forwarding of application toHead, DS office in Lagos. This

depends on availability of funds and the number ofapplications in the office forconveyance to Lagos 7 14

10. Listing and numbering ofapplications in Head, DS Office 2 3

11. Forwarding of application toRetail Outlet Branch fromHead, DS office 1 1

12. Review and processing of application by Downstreamand forwarding of applicationto L & P Branch 2 3

13. Contact DPR field office forincomplete or incorrectdocumentation 2 3

14. DPR field office contactsapplicant for supply ofrequested document(s) 5 7

15. DPR field office forwards requested document(s) toRetail Outlet Branch for reprocessing 2 3

16. Forwarding of processedapplications by L & P to Downstream for confirmation of printed Licenses.This depends on the volumeof applications 3 5

17. Confirmation of informationon printed license by Downstream 1 1

18. Return of confirmation for printed license to L & P by Downstream 1 1

19. Forwarding of confirmedLicense, after correctionif, any, to Director for signature. This dependson the number that constitute a batch 2 3

20. Signing of Licenses byDirector and sendingthem out 1 1


10.3.7 REQUIREMENTS FOR KEROSENE STORAGE/SALE LICENCE

This license is available at all DPR offices. • Applicants normally are sponsored by on application through a marketer with current

storage/sale license• Applicant submits a completed application that is stamped by the sponsoring company.

The completed application form is accompanied by a bank draft of N2,500.00, made payable to “Federal Government of Nigeria – DPR Fees Account”. The payment in acknowledged by issuing of receipt. A duplicate copy of receipt sent along with the completed application form to DPR headquarters for issuance of license.

10.3.8 PROCEDURE AND TIME -FRAME FOR PROCESSING OF APPLICATION FOR STORAGE/SALE LICENCE OF KEROSENE

S/NO PRODCEDURE TIME FRAME (IN DAYS)Minimum Maximum


to Accounts Division forissuance of License fee receipt 1 1

3. Return of application to theprocessing officer to continue action 1 1

4. Review and processing of the application - including siteinspection where necessary 2 2

5. Writing and conveyingrecommendation to OperationsController for approval 1 1

6. Operations Controller approves,signs and recommends forforwarding to Lagos in Head, DS’sOffice 1 1

7. Application is forwarded toHead, DS’s office in Lagos for further processing. Sub-mission of application is dependent upon the numbers available. 7 14

8. Application is listed, numbered and forwarded to Downstream Branch 1 1

9. Downstream Branch reviews,processes and forwards to L&P Branch for writing of

License. 2 210. Downstream Branch informs

the office of origin of application of any problemor defects in the applicationand asks the office to get intouch with applicant to rectifythe defect. 2 3

11. Incomplete documentationof application is addressedby the Field Office and returnedto Downstream Branch 1 7

12. L&P Branch prints and sends toDirector for signing 1 2

13. Director signs and directs fordispatch to the field office oforigin 1 1


10.3.9 GENERAL PURPOSE OIL SERVICE COMPANIES These companies do not render highly specialized or technical services to the oil and gas

industry. Submission of application on company letter headed paper to DPR office, anywhere in the country. The form should be accompanied with:

Completed prescribed application form.

N.B It is important that in paragraph 7 of the prescribed form, the nature of a business is precisely stated, as terms such as General Contractor, General Supplies, Merchandise, Exporter, Importer, etc are not acceptable. And in paragraph 2, it is the current address, office and mailing addresses that should be stated.

Bank draft of N5,000.00 as application fee payable to “Federal Government of Nigeria – DPR Fees Account”. This will be acknowledged immediately with issuance of payment receipt.

A copy of company certificate of Incorporation with Corporate Affairs Commission (C.A.C).

A copy of current company’s Tax Clearance Certificate issued by the Federal Inland Revenue Services.

In case of non-limited liability companies, submit copies of forms/particulars (forms 1,2,3) of business registration in Nigeria and evidence of accreditation.

10.4 MAJOR CATEGORY OIL INDUSTRY SERVICE COMPANIES These are specialized categories of companies that required highly technical

skills in their business. The Department has classified these services into thirteen areas namely Calibration, Construction, Consultancy, Diving, Dredging, Drilling, Equipment Supply, Exploration, Laboratory, Marine Survey, Marine or Special Transportation, Pipeline/Production and Pressure testing.

The requirements are: Submission of an application on company’s letter headed paper. A letter from

Customs and Excise Department, Pharmaceutical Society of Nigeria, Federal Ministry of Internal Affairs and Surveyor’s Licensing Board of Nigeria as the case may be for business such as Clearing and Forwarding, Pharmaceutical, Security, Land/Geodetic Survey allied jobs.

Provision of evidence on any other information that may assist in the evaluation of company’s application.

N.B The Permit, when granted has a life span of 1 year, i.e. from January to December

of same year. Application to be accompanied with Completed prescribed application form and form F-2A stating clearly in paragraph 7 the category.

Give proof or show evidence of expertise and technical know-how in the specialized area of activity. To this end it is advisable that a profile of jobs previously handled or being handled by company and stating clearly their type and technical specification. In addition, the curriculum vitae and experience of company’s key professional staff should be furnished.

A copy of company’s tax clearance certificate from Federal Inland Revenue Services or the Tax Clearance Certificate of one of the Directors in case of a Sole Proprietorship/Partnership business firm.

A copy of an accident status report for the preceding year.

A comprehensive list of its staff indicating their names, designations and nationalities.

A copy of returns on expatiate staff in the employment of the company which should be backed up with current quota approvals of the Federal Ministry of Internal Affairs.

An application fee in Bank Draft of N25,000.00 for all categories other than Seismic data gathering and Interpretation Drilling rig and Hoist operation, Down hole data gathering and interpretation, Pipeline and production facilities construction whose application

fee is N250,000.00. The Bank draft should be payable to “Federal Government of Nigeria – DPR Fees Account”.

All payments are acknowledged with receipts.

Further information on this category services can be obtained in any of the DPR office.

10.4.1 PROCEDURE AND TIME-FRAME FOR PROCESSING OFAPPLICATION FOR OIL INDUSTRY SERVICE COMPANY

This is both for categories of service company that is for both 7.3.9 & 7.4 preceding.


1. Receipt of application 1. 12. Payment of Draft to Accounts

Division and collection of receipt from Accounts Division 1 2

3. Draft of recommendation 1 24. Forwarding of recommendation

to L&P Branch 1 15. Contact Applicant for incomplete

or incorrect documentation 2 36. Contact DPR field office concerned

for site/facilities inspection 2 37. Writing and submission of

inspection report 2 58. Forwarding of completed

application package to L&P Branch for issuance of permit 1 19. Printing and signing of permit 2 3


10.4.2 REQUIUREMENTS FOR ISSUANCE OF BUNKERING PERMIT.

Applicant submits application along with application fee of US$10,000.00 or Naira equivalent to Director – DPR. The bank draft is made payable to “Federal Government of Nigeria – DPR fees A/C”.

Along with the application the following documents are submitted. This service is only available at DPR headquarters.

Particulars of bunkering vessel.

Evidence of installation of communications equipment for communication between sea and shoreline and other seafarers.

On receipt of these documents an inspection visit to the vessel in undertaken to verify claims of applicant and establish sea worthiness of vessel.

Applicant is to pay US$50,000.00 or Naira equivalent, and the bank draft being made in favor of “Federal Government of Nigeria – DPR Fees Account” with a receipt issued to applicant as an acknowledgement of receipt.

This service for now suspended for sometime because the last batch sent to the Honorable Minister since 2000, the permits have not been released.

10.4.3 PROCEDURE AND TIME-FRAME FOR PROCESSING OF APPLICATION FOR BUNKERING PERMIT


1. Receipt of application 1. 12. Issuance of application fee

payment receipt after sendingapplication to Accounts andAccounts returns it with payment receipt 2 3

3. Assessment of documentsubmitted 1 2

4. Contact applicant forincomplete or incorrectdocumentation 1 3

5. Receipt of applicant responseto request on documentation 5 7

6. Verification of applicant’ssubmission by physicalinspection of vessel and otherfacilities. This depends onlogistics in place 5 7

7. Submission of report onverification visit including

writing of the report 2 38. Review of submissions

(documents and verificationreport) and recommendation 1 2

9. Handling of recommendationto issue on not to issue permit 1 2

10. Applicant in to pay the permit fee if applicationis successful 2 3

11. Payment of permit fee byapplicant 7 14

12. Issuance of payment receiptfor permit fee by Accounts,including submitting theBank Draft by DSand returning of filewith the receipt. 2 3

13. Writing and conveying ofrecommendation of issuanceof bunkering permit to theHM of Energy 4 14


10.4.4 REQUIREMENTS FOR IMPORTATION OF PETROLEUM PRODUCTS

Eligibility to Import products. Petroleum Products Marketing Company (PPMC) Ltd. Major Petroleum Marketing Companies. Independent Petroleum Products Marketing Companies with storage facilities. Independent Petroleum Products Marketing Companies without storage facilities but

have lease/hire arrangements with either NNPC or Major Petroleum Products Marketing Companies or another Independent Petroleum Products Marketing Companies with storage facilities.

Submission of an application on company’s letter headed paper to Director – DPR.

The application should be accompanied with:

Completed application form, obtainable from DPR head office. An application fee of N50,000.00 in Bank draft payable to “Federal Government of

Nigeria – DPR fees Account”. A copy of Certificate of Incorporation of company with Corporate Affairs Commission.

A copy of current storage/sale license issued by the DPR. A Bank reference. A copy of current tax Clearance Certificate of Federal Inland Revenue Services. An inspection of the storage facilities of the proposed imported products by the DPR.

10.4.5 PROCEDURE AND TIME-FRAME FOR PROCESSING OF APPLICATION FOR IMPORTATION OF PETROLEUM PRODUCT

S/NO PROCEDURE TIME-FRAME (IN DAYS)Minimum Maximum

1. Receipt of application 1. 12. Forwarding of permit fees

to Accounts and issuing ofreceipt by Accounts Division 1 2

3. Writing and forwarding ofpermit to Director for signing 1 1

TOTAL DURATION 3 4

10.5 ESTABLISHMENT OF OIL TERMINAL, FPSO, FSO

No oil terminal shall be installed except by virtue of license or lease granted under the petroleum decree

The express approval in writing of the Honorable Minister of Petroleum and Energy must be obtained.

The terminal shall be established geographically with precise co-ordinates.

(a) Accompanying Documents

o Submission of application on company’s letter headed paper to the Honorable Minister through the Director, DPR. The application is to be accompanied by the following:-

o A master plan drawn to scale, showing the site of the installation and the design of the facilities, crude oil storage tanks, etc. in sufficient details.

o Codes, Standards and Specifications to be adopted in the design of the terminal with specifications of equipment and facilities to be installed.

o Detailed description of equipment, installations and laboratory facilities.

o Copies of equipment layout including all Piping & Instrumentation drawings (P&IDs) of the proposed terminal or storage facility. The drawing must be approved and stamped by a recognized authority.

o Copies of Fire Service report indicating that the proposed arrangements for prevention of fire and handling of emergencies are satisfactory.

o Copies of Police Report indicating that the proposed site and operations of the terminal or storage facility will not be near NEPA high tension lines or constitute any traffic problems.

o Copies of letter of consent and approval from the Town Planning Authority.

o Certificate of Incorporation of the company.

o Certified copies of Memorandum and Articles of Association of the company.

Copies of tax receipt or tax clearance certificate for the proceeding three years. A tax exemption certificate issued to a newly incorporated company is acceptable.

Environmental Impact Assessment of the proposed project

Effluent and solid waste disposal management plan

(b) Additional Requirements for FSO, FPSO or Other Floating Terminals

Type of facility Age of facility and manufacturer Relevant safety certificates issued by competent organization or company Relevant licenses and permits earlier issued by regulating bodies. Pre-shipment inspection report of facility. Quality assurance tests report.

10.5.1 PROCESSING OF APPLICATION FOR THE ESTABLISHMENT OF CRUDE OIL TERMINAL, FPSO, FSO,WITH TIME – FRAME IN DAYS (Min – Max)

An application for the Hon Minister’s approval for a company to install and operate an Oil Terminal, FPSO or FSO shall be submitted in sextuplicate on standard letter No. 56. 1 – 2

On receipt of the six copies of the completed application forms, a file is opened 1 – 2

The file is then minuted to the Head, Terminal Operations for necessary action with an indication that the correct number of copies of application has been received and that all the items listed on the application as accompanying were enclosed 2 – 4

The Head, Terminal Operations directs that a copy of each application, together with the technical attachments should be forwarded to the Permanent Secretary, Ministry of Transport, the Nigerian Ports Authority, the appropriate state authority, the Ops Controller of the area in which the terminal is to be located. Standard letter 52 is to be used for this purpose. 1 - 2

On return of the file the Head, Terminal Operations examines or cause to be examined all the details submitted. The Head, Terminal Operations can summon the representative of the company seeking approval to establish terminal to a discussion if there are issues to be clarified. 2 – 14

When the Head, Terminal Operations is satisfied that all the materials necessary for consideration of the application have become available the file is B.Ued for four weeks from the date of the issue of standard letter No. 52.

The file is again B.Ued for three weeks.

If at the end of three weeks all replies have been received, the Head, Terminal Operations then puts up or causes to be put up a report to the Director of Petroleum Resources through Head, Downstream stating whether or not such a terminal would be suitable. 1 – 2

A recommendation on whether the HM should give or withhold his approval should then be made. 1 – 4

If the Head, Terminal Operations recommends approval, he should prepare at the back cover of

the file six copies of standard letter No. 57. 1 - 2

If however, the Head, Terminal Operations recommends that certain conditions have to be made, these conditions have to be discussed and agreed with the applicant, otherwise, the file is to be passed for approval. 2 – 4

The Head, Terminal Operations passes the file with his recommendations to the Director, through Head, Downstream. 1 – 2

The Director then sends the recommendations, with his own comments to the HM. 2 – 5

If the HM approves the application, he signs the copies of Standard letter 57.

The original letter of approval is forwarded to the applicant. A copy each is endorsed to the PS Ministry of Transport, The General Manager, Nigerian Port Authority, appropriate state authority and the Operations Controller of the area. 3 – 7

If the HM refuses the application, the applicant is informed, stating the reasons for the disapproval. 3 - 7

Total duration 21 - 57

11 CUSTOMER EXPECTATIONS o Information on whatever service is rendered by the Department.o Timely issuance of licenses and permits.o Effective and timely monitoring and regulating of quantity, quality and

prices of petroleum products being dispensed to public.o Timely and effective collection and remission of rents, royalties, gas flare fees,

signature bonuses and other fees charged into Federal Government account.o Accountability and transparency in all transactions and operations of the Department. o Effective and timely regulation of the oil and gas industry.

12 XPECTATION OF DPR FROM CLIENTS, PUBLIC AND STAKEHOLDERS o Appreciation for good service deliveryo Timely renewal of licenses and permitso Prompt and correct payment of fees, royalties, signature bonuses, rents, leases, etc.o Proper completion of application forms and submission of relevant documentso Prompt and correct submission of returnso Regular attendance at stake holder’s forumso Good oil industry practiceo Compliance to statutory regulations

13. GRIEVANCES AND REDRESS MECHANISM. Further to the set up of a Customer Liaison Office, there are telephone hotlines in all the hubs of our activities which are the field offices and the headquarters. These lines are to be used in the event of dissatisfaction or grievances and seek redress for service failure in any of the services provided. There is a Grievances Redress Officer at the head office that can be reached by the telephone number 012614913. If however, the customer is not satisfied, he or she is free to see the Departmental Nodal Officer at Room 822. He can also be reached through telephone number already provided at the service profile above. It is pertinent to mention for the information of customers that a complaint register has been opened in the office of the Customer Relation/Complaint Officer.

An aggrieved person can also personally see the Zonal Nodal Officer in the nearest field office. Also drop-in complaints/suggestions shall be dropped in complaint boxes which are conspicuously and strategically located.

However, any customer who is still dissatisfied with the resolution of his/her complaints is free to seek redress from the Director, Department of Petroleum Resources, Room 911 or through the telephone number indicated in the service profile above.

14. PERFORMANCE CONSTRAINTSThe services undertaken by the Department require a lot of resources in terms of adequate qualified and trained personnel, adequate funding, provision of working tools and equipment, human resources continuous development, rewards/motivation.