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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SECTION III

3.1
Approval to Construct A Petroleum Process Plant
The applicant shall

i)
Submit the detailed engineering of the plant / refinery to the Department of Petroleum
Resources as specified in section 2.4 of these guidelines for review and approval.
ii)
Make a comprehensive presentation on the project design to DPR

3.2
GRANT OF APPROVAL TO CONSTRUCT (ATC)
Having satisfied the requirements in section 3.1 (i & ii) above, the Honorable Minister may grant the
applicant the construction license upon recommendation from the DPR.
The applicant can subsequently proceed with the Procurement and Construction phase of the project.

3.3
VALIDITY OF ATC
The validity of an approval to construct the refinery / plant shall be for a period of twenty four (24)
months after which it shall lapse. It is expected that at least 50% mechanical erection would have been
achieved otherwise revalidation of the approval to construct will be necessary.

3.4
PROCEDURE GUIDES FOR REVALIDATION OF EXPIRED APPROVAL TO CONSTRUCT
(ATC) A PRIVATE REFINERYOR HYDROCARBON PROCESS PLANT
In the event that an Approval to Construct (ATC) a private refinery or a hydrocarbon process plant
expires without actualization of the project and the ATC holder is still interested in completing the
project, the following information and documents shall be forwarded to the Department of petroleum
Resources for consideration towards revalidation of the ATC:

1. An application in writing declaring the intent to revalidate the ATC

2. A comprehensive project status report shall be attached to the application.
This shall be supported by

i)
Itemized reasons for none performance during the period of validity of the expiring ATC

ii)
Argument for the revalidation attaching revised work scope and project execution schedule.

iii)
None refundable application fee of fifty thousand US dollars only ($50,000) in bank draft
payable to “Federal Government of Nigeria ‘DPR Fees accounts” and DPR service charge of
five hundred thousand naira only (N500,000) payable to “Department of Petroleum
Resources”.

iv)
A deposit of US $1 million for every 10,000 bpsd capacity will be required to support proof
of funds for the project. This amount is refundable with interest upon adherence to revised
project execution schedule within eighteen months otherwise; it is forfeited to the federal
government.

3. The applicant shall be required to make a presentation to DPR in support of this application.

In addition to the above submissions, revalidation of an expired ATC is subject to a successful DPR
comprehensive assessment of each project achievement in line with set statutory milestones as
contained in the subsisting procedure guides for establishment of private refineries.