This post contained the list of Licences/ permits fees in Nigerian Oil and Gas Pipeline system activities like Design, Construction and Operation. The statutory compliance checklist and the Commissioning / Approval to Introduce Hydrocarbon Licences/ permits processing fees.
It also contained the Penalties for Non- Compliance. That’s, Operating Pipeline Without a Valid LTO and Decommissioning a Pipeline Without Approval. And the official Pipeline Licensing and Approvals Processing Time Frames and Responsibilities. Note: that time frame may defer in real life situation.
Read: Pipeline Design, Construction and Operation Guidelines
| S/N | FEE DESCRIPTION | AMOUNT | |
| 1. | PTS Application Fee | NGN 20:00 | |
| 2. | PTS Grant Fee | NGN 50:00 | |
| 3. | PTS Processing Fee | NGN 500,000:00 | |
| 4. | OPLL Application Fee | NGN 50:00 | |
| 5. | OPLL Grant Fee | NGN 200:00 | |
| 6. | OPLL Processing Fee | NGN 500,000:00 | |
| 7. | Transfer of OPLL Processing fee | NGN 500,000:00 | |
| 8. | OPLL Annual Rental Fee | NGN 20:00/mile (NGN 12:50/km) or NGN 200:00 minimum | |
Read: Pipeline Construction & Maintenance Services
| 9. | Licence To Operate Fee | USD 10,000:00 |
| 10. | Renewal of Licence To Operate Fee | USD 10,000:00/annum |
| 11. | Conceptual Design/Feed Approval Fee | NGN 500,000:00 |
| 12. | Re-Validation of Conceptual Design/Feed Processing Fee | NGN 250,000:00 |
| 13. | Detailed Engineering Design Approval Fee | NGN 500,000:00 |
| 14. | Commissioning / Approval to Introduce Hydrocarbon | NGN 500,000:00 |
| Processing Fee | ||
| 15. | OPLL Application Fee for a Restriction Order | NGN 100:00 |
| 16. | Grant Fee of a Restriction Order | ≤ NGN 400:00 |
| 17. | Change of Service Processing Fee | NGN 500,000:00 |
| 18. | Decommissioning Processing Fee | NGN 500,000:00 |
Summary of Penalties for Non- Compliance
| S/N | FINE DESCRIPTION | AMOUNT |
| 1. | Operating Pipeline Without a Valid LTO | USD 250,000:00 |
| 2. | Decommissioning a Pipeline Without Approval | USD 250,000:00 |
In addition to the above fines, non-compliance to the provisions of these guidelines may attract other penalties such as withdrawal or suspension of permits and licences, prosecution and special fines as may be determined by the commission.
Read: Storage Tanks Design & Terminal Construction
Statutory Compliance Checklist
| Statutory Compliance Plan | NUPRC Activity | |
| 1. 1 | Permit to Survey Pipeline R.O.W. | Inspection of proposed ROW and Permit to Survey.
NUPRC shall seek the consent of 3rd party agencies (Ministry of Lands, NPA, NIWA, Railway e.t.c. depending on the interference by the proposed pipeline). |
| 2. | Conceptual Design | Participation and Approval |
| 3. | Design Safety Case (Basic) | Approval |
| 4. | Detailed Design | Participation and Approval |
| 5. | Environmental Impact Assessment (EIA) | Approval |
| 6. | Environmental Management Plan (EMP) | Endorsement |
| 7. | Technical, Safety and Engineering Reviews | Participation |
| 8. | Manufacturing Inspection Plan (MIP) / Line Pipe Mill Certification | Witness and endorse In-factory manufacturing QA/QC processes |
| 9. | Factory Acceptance Tests (FAT) / Inspection & Test Plans (ITPS) | Witness and endorse |
| 10. | Pipeline O&M Strategy | Approval & Monitoring |
| 11. | Oil Pipeline Licence | Grant of Licence. DPR shall seek the consent of 3rd party agencies (Ministry of Lands, NPA, NIWA, Railway e.t.c. depending on the interference by the proposed pipeline). Public hearing shall also be held during before a licence is granted. |
| 12. | Pipeline construction | Monitoring |
| 13. | Pipeline Pre- Commissioning & Commissioning | Approval & Witness |
| 14. | Manufacturing Inspection Plan (MIP) / Line Pipe Mill Certification | Witness and endorse In-factory manufacturing QA/QC processes |
| 15. | Factory Acceptance Tests (FAT) / Inspection & Test Plans (ITPS) | Witness and endorse |
| 16. | Pipeline O&M Strategy | Approval & Monitoring |
| 17. | Oil Pipeline Licence | Grant of Licence. DPR shall seek the consent of 3rd party agencies (Ministry of Lands, NPA, NIWA, Railway e.t.c. depending on the interference by the proposed pipeline). Public hearing shall also be held during
before a licence is granted |
| 18. | Pipeline Construction | Monitoring |
| 19. | Pipeline Pre-Commissioning & Commissioning | Approval & Witness |
Read: NCEC Certificate Registration
Pipeline Licensing and Approvals Processing Time Frames
The official Pipeline Licensing and Approvals Processing Time Frames and Responsibilities. This may defer in real life situation.
| S/No | TASK | Estimated Duration | Responsibility |
| 1. | Preparation and submission of PTS application | Determined by proponent | Proponent |
| 2. | Review of PTS application & issuance of 3rd party letters to stakeholders | 2 weeks | NUPRC |
| 3. | Issuance of ‘No Objection’ response by 3rd party stakeholders | 8 weeks | 3rd party stakeholder |
| 4. | 1st reminder to 3rd party stakeholder for issuance of | 4 weeks | 3rd party |
| ‘No objection’ response | stakeholder | ||
| 5. | Final reminder to 3rd party stakeholder for issuance of | 2 weeks | 3rd party |
| ‘No objection’ response | stakeholder | ||
| 6. | Issuance of PTS certificate | 1 week | NUPRC |
| 7. | Preparation and submission of OPLL application | Determined by proponent | Proponent |
| 8. | Review of OPLL application & issuance of 3rd party letters | 2 weeks | NUPRC |
| 9. | Publication in Newspapers | 4 weeks | Proponent |
| 10. | Conduct of Public Hearing | 6 Weeks from publication date | Proponent |
| 11. | Issuance of ‘No Objection’ response by 3rd party stakeholders | 8 weeks | 3rd party stakeholder |
| 12. | 1st reminder to 3rd party stakeholder for issuance of ‘No objection’ response | 4 weeks | 3rd party stakeholder |
| 13. | Final reminder to 3rd party stakeholder for issuance of No objection’ response | 2 weeks | 3rd party stakeholder |
| 14. | Preparation and submission of Conceptual Design/FEED package | Determined by proponent | Proponent |
| 15. | Review of Conceptual Design/FEED package | 6 Weeks | NUPRC |
| 16. | Preparation and submission of Detailed Engineering Design package | Determined by proponent | Proponent |
| 17. | Review of DED package | 6 Weeks | NUPRC |
| 18. | Issuance of OPLL certificate | 1 Week | NUPRC |
Read: NCDMB (NOGIC JQS) Registration
| 19. | Construction of Pipeline | Determined by NUPRC & proponent | Proponent |
| 20. | Preparation and submission of Pre-commissioning application | Determined by proponent | Proponent |
| 21. | Pre-commissioning Exercise | Determined by proponent | Proponent |
| 22. | Preparation and submission of Commissioning/Approval To Introduce Hydrocarbon application | Determined by proponent | Proponent |
| 23. | Issuance of Approval to Introduce Hydrocarbon | 2 weeks | NUPRC |
| 24. | Preparation and submission of LTO application | Determined by proponent | Proponent |
| 25. | Review & Issuance of LTO | 2 Weeks | NUPRC |
Read: Oil and Gas License in Nigeria
Key abbreviations, terms and references used in this post are explained hereunder.
ANSI American National Standard
ASME- American Society of Mechanical Engineers
ASTM- American Society for Testing & Material
BFD Basis for Design
CEP Community Engagement Program
DPR Department of Petroleum Resources
DPR Director/CEO, Department of Petroleum Resources
DSAW Double Submerged Arc Welded
EGASPIN Environmental Guidelines and Standards for Petroleum Industry in Nigeria
EIA Environmental Impact Assessment
ERW Electric Resistance Welded
FAT Factory Acceptance Test
FEED Front End Engineering Design
FLR Flowline and Riser
ITP Inspection Test Plan
LTO Licence to Operate
MFR Melt Mass Flow Rate
MOSR Minerals Oil Safety Regulation
NACE National Association of Corrosion Engineers
NDR National Data Repository
NDT Non-Destructive Test
NPT National Pipe Thread
OGISP Oil And Gas Industry Service Permit
O&M Operation and Maintenance
OPLL Oil Pipeline Licence
PFS Process Flow-Scheme
PIA Preliminary Impact Assessment
P&ID Piping and Instrumentation Diagram
PQR Procedure Qualification Record
PTS Permit to Survey
ROW Right of Way
SAT Site Acceptance Test
SME Subject Matter Experts
SDR Standard Dimension Ratio
SOW Scope of Work
TSC Technical Safety Control
WPS Welding Procedure Specification