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GUIDELINES FOR THE ESTABLISHMENT HYDROCARBON PROCESSING PLANTS (PETROLEUM REFINERY AND PETROCHEMICALS) IN NIGERIA

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APPENDIX II 
 
DESIGN CONSIDERATIONS 
 
The design parameters shall generally follow the specifications outlined in the current editions of: 
- 
The petroleum Refining Regulations, 1974 
- 
Standards Organization of Nigeria (SON) specifications of petroleum products (for domestic 
market). 
- 
Refining Safety Code Part 3 of the Institute of Petroleum Model Code of Safe Practice. 
- 
API Standard 2510 Design and Construction of LP Gas Installation at Marine and Pipeline Terminals, 
Natural Gas Processing Plants, Refineries, Petrochemical Plants and Tank Farm. 
- 
API Recommended Practices 520 and 521 for pressure relieving and depressurizing systems. 
- 
National Fire Protection Association Standards No. 59A 
- 
Liquefied Petroleum Gas Safety Code of Safety Practice. 
- 
Electrical Safety Code: Part 1 of the Institute of Petroleum Model Code of Safe Practice 
- 
American National Standard Institute (ANSI) B31-3-Pressure Piping of Chemical Plant and Petroleum 
Refining Piping. 
- 
American Society of Mechanical Engineers – ASME – Boiler Pressure Vessel Code, (Section 1). 
- 
American Society of Mechanical Engineers (ASME) Mechanical Standards Class “B” Heat Exchangers 
Section 7. 
- 
API 550 Manuals of Refinery Instruments and Control Systems 
- 
ASME B31.8 for Gas Transmission and Distribution Systems 
 
 
 
THE   DEPARTMENT   OF   PETROLEUM   RESOURCES 
 
 
FISCAL INCENTIVES, GUARATEE AND ASSURANCES FOR PROSPECTIVE PETROLEUM REFINERS  
 
a) 
Crude Oil Pricing: 
International market prices shall be maintained for Nigerian Crude that may be procured by a refiner which 
is the price at which crude oil is supplied to NNPC. Crude oil price discount shall not apply within the 
deregulation policy. However, Government shall work out a commensurable discount as long as government 
subsidy on refined products exists. 
 
b) 
Crude oil Allocation: 
Government will guarantee crude oil requirement of refineries up to the maximum turn down ratio (60% 
processing capacity) of the plant to the extent that crude is available. Refiners shall also be free to source for 
their crude oil.  
 
c) 
Crude Lifting Rights: 
Crude oil lifting shall not commence before mechanical completion of the refinery in line with the due 
process.  It is recommended that crude lifting shall be in line with NNPC guide lines and procedure. 
 
d) 
Preferred Bidder for Oil Block Allocation 
Companies that have established a refinery in Nigeria should have an advantage in the consideration for oil 
block allocation during bidding exercise.   
 
e) 
Fiscal Incentives 
Commercial incentives applicable to investors in the oil industry in Nigeria are as obtainable from the 
NNPC.