Library / Midstream and Downstream Environmental Remediation Fund Regulations Draft Date: 10/06/2022 Establishment of the Fund 1. (1) These Regulations are made for the administration of the Environmental

Midstream and Downstream Environmental Remediation Fund Regulations Draft Date: 10/06/2022 Establishment of the Fund 1. (1) These Regulations are made for the administration of the Environmental

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considered a Shallow Water High-Risk Area, the entire licence or 
lease shall be considered as being located in a Shallow Water 
High-Risk Area, 
 
 
(c)  
all or part of a petroleum prospecting licence or petroleum 
mining lease is situated onshore and part in shallow water, the 
entire licence or lease shall be considered onshore, and 
 
 
(d)  
all or part of a petroleum prospecting licence or petroleum 
mining lease is situated in shallow water and part in deep 
offshore, the entire licence or lease shall be considered shallow 
water. 
 
(4) The financial contribution shall be determined as follows— 
 
(a) 
The following formula shall be used to determine the annual financial 
contribution —  
 
Financial contribution for a year = Fixed Contribution + (Midstream 
and Downstream Capital Expenditure x CER) + (CL x CLR) + (CG x 
CGR) 
 
(b)  
For the purpose of determining the financial contribution, the 
Midstream and Downstream Capital Expenditure shall not include 
contributions to a decommissioning and abandonment fund.   
 
(c) 
The amount of expenditure incurred during a relevant year, which is 
characterised as expenditure of capital nature under the 
Companies Income Tax Act, shall be included in the full amount 
incurred during the relevant year and shall not be depreciated under 
the initial and annual allowances rules for the purpose of the 
calculation of the financial contribution. 
 
(d)  
The average daily capacity of a facility shall be the name plate 
capacity. Where the capacity changes due to additional investment 
or abandonment during the year, the average daily capacity shall 
be determined by the sum of all capacities multiplied by the days 
such capacity is in existence and dividing this amount with the 
number of days in such year. The result shall be rounded to entire 
barrels or thousand cubic feet, as the case may be.   
 
(6) The financial contribution shall be paid in United States dollars. However, for 
production delivered for local refining, the financial contribution may be wholly 
or partly paid in Naira at Central Bank of Nigeria applicable exchange rate for 
the payment date.