Library / GUIDELINES FOR WHOLESALE GAS AND PETROLEUM LIQUIDS SUPPLY OPERATIONS_GUIDE_2_2024

GUIDELINES FOR WHOLESALE GAS AND PETROLEUM LIQUIDS SUPPLY OPERATIONS_GUIDE_2_2024

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Applicable to
•
Midstream and Downstream Petroleum
Operators
•
Lease Holders
GUIDELINES FOR WHOLESALE GAS AND PETROLEUM LIQUIDS
SUPPLY OPERATIONS
Code: NMDPRA Guide- 2-2024
Revision Date: 9th September 2024

This is a property of the Nigerian Midstream and Downstream Petroleum Regulatory Authority. All rights reserved.
6
iv.
The remittance of wholesale levy to the MDGIF shall be carried out by wholesale supply
licence holder, gas aggregators or any party entitled to collect wholesale price and
others as may be designated by the NMDPRA.
2.3.2 Wholesale Price and Wholesale Levies of Petroleum Liquids
i.
The wholesale price for crude oil and field condensates shall be determined by the
prevailing international rates of similar grades.
ii.
The wholesale price for other petroleum liquids is determined in line with the provisions of
section 206 of the PIA.
iii.
The wholesale levy on petroleum liquids shall be 1% (i.e. 0.5% each for Authority and
MDGIF) of the wholesale price of the petroleum liquids (excluding crude oil and field
condensates) purchased by the wholesale customer which shall be remitted on a 50 –
50 ratio to the Authority and the MDGIF respectively.
iv.
The wholesale levy shall be included in “sale and purchase agreements”, “sales
invoices”, and “receipts” issued to all wholesale customers.
v.
The remittance of wholesale levies to the Authority and the MDGIF shall be carried out
by the WSL holder, crude oil refiners, importers or other party as may be designated by
the NMDPRA.
vi.
In special cases where the wholesale customer imports petroleum liquids for own use,
the wholesale levies shall be applicable and shall be paid by the importer.

3
APPLICATION PROCEDURE FOR WHOLESALE HYDROCARBON SUPPLY OPERATIONS
3.1
Application Overview for WSL
3.1.1 Overview of WSHL Requirements
Any qualified person carrying out wholesale hydrocarbon supply operations shall:
i.
Apply to the Authority Chief Executive (ACE) of the NMDPRA, detailing the business
concept for the wholesale hydrocarbon supply operations.
ii.
Pay the applicable fees for WSL outlined in the Regulations.
iii.
Satisfy the requirements prescribed in paragraph 3.1.2 of these Guidelines and
section 111 (2) and (3) of the PIA as applicable.
iv.
Be required to make technical presentations on any aspect of the supply operations,
at any time as the NMDPRA may deem fit.
v.
Obtain the relevant authorization, permits or licences for the WHSF as applicable.