Library / GUIDELINES FOR THE ESTABLISHMENT HYDROCARBON PROCESSING PLANTS (PETROLEUM REFINERY AND PETROCHEMICALS) IN NIGERIA
GUIDELINES FOR THE ESTABLISHMENT HYDROCARBON PROCESSING PLANTS (PETROLEUM REFINERY AND PETROCHEMICALS) IN NIGERIA
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13 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.
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