Library / Midstream and Downstream Decommissioning and Abandonment Regulations Under Section 232 and 233 of the Petroleum Industry Act (2021). DRAFT DATE: 10/06/2022
Midstream and Downstream Decommissioning and Abandonment Regulations Under Section 232 and 233 of the Petroleum Industry Act (2021). DRAFT DATE: 10/06/2022
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(2) The Authority shall access the fund only after it has provided a written notice to the respective licencee of the noncompliance and has been given a reasonable period to rectify the non-compliance. (3) If the Authority decides to apply the fund pursuant to Regulation 28(1), the Authority shall be responsible to manage the Fund in accordance with the applicable laws, and the procurement of any goods, works or services required to undertake the decommissioning and abandonment shall be subject to the laws and regulations applicable to public procurement. Reporting 29. A licencee shall furnish the Authority not later than thirty (30) days after the end of each calendar year a statement of accounts with respect to its decommissioning and abandonment contributions into the fund in the form prescribed by the Authority. A copy of such statement shall be provided by a licencee to the Federal Inland Revenue Service within the same timeline. Decommissioning and Abandonment Liabilities in case of Assignment 30. (1) An assignment of interest in a licence pursuant to the Act, or a licence or lease saved pursuant to Section 311 (9) of the Act, 2022, shall include the assignment of obligations to make contributions to the Fund under this regulation; Provided that in any case of such assignment, the assignor shall where the fund accrued in the Fund is insufficient to cover any decommissioning and abandonment liabilities as at the date of the assignment, provide a security in the nature of a bank guarantee to the Authority or cash deposit to the Fund to cover the amount required for that part of the liabilities not provided for in the Fund. (2) All parties to an assignment, whether assignors or assignees, shall be jointly and severally liable for the decommissioning and abandonment obligations with respect to a relevant licence. Penalty 31(1) A licencee, who fails to submit a decommissioning and abandonment plan with respect to a licence within the time prescribed in these regulations shall be liable to an administrative penalty of One Hundred Thousand United States Dollars (US $100,000) for every year of non- compliance, payable to the Authority. (2) A licencee who fails to establish the Fund within the time prescribed in these regulations shall be liable to an administrative penalty of One Hundred Thousand United States Dollars (US $100,000) for every year of non-compliance, payable to the Authority. (3) Any licencee who fails to contribute to the Fund, in the manner prescribed in the approved decommissioning and abandonment plan under these regulations, three (3) months after payment is due, shall be liable to an administrative penalty of one year contribution to the Authority in addition to the sum due and payable to the Fund for the period. (4) A licencee who commences or carries any decommissioning and abandonment program without the approval of the Authority as provided for in these regulations shall be liable to an administrative penalty of Two Hundred Thousand United States Dollars (US $200,000) payable to the Authority. (5) The penalties under these Regulations may be payable in Naira at the prevailing Central Bank of Nigeria’s exchange rate as advised by the Authority.
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