Library / Midstream and Downstream Petroleum Operations Regulations 2025
Midstream and Downstream Petroleum Operations Regulations 2025

Page 21 of 82
B 2123
28.—(1) The shore figures shall be regarded as the official fiscalised figures
for any discharge or lifting of petroleum liquids or natural gas or its derivatives,
except where the measurement system is on the vessel and certified by the Authority.
(2)  Where the figure recorded on board a vessel (ship figure) exceeds that
recorded on shore, the limit of tolerance allowed for these variations shall depend
on the cargo quantity expressed in long tons or metric tons and the allowance as
prescribed by the Authority.
(3)  Where the difference between the ship and shore figures recorded
exceeds the allowable limits as prescribed by the Authority, the vessel shall not
be cleared to sail until a written undertaking is given by the vessel captain or the
facility operator for the Authority’s verification of  the outturn discharge of the
vessel at port of discharge or any other means as may be directed by the Authority.
(4)  A facility or vessel owner who fails to comply with the outturn
verification process within 60 days of a demand by the Authority shall be subject
to the penalties stipulated in these Regulations and in addition may not be permitted
to discharge or lift petroleum liquids or natural gas or its derivatives from any
Nigerian facility until the Authority is satisfied that such facility or vessel owner
has complied with the process.
(5)  A vessel which records differences between ship and shore figures
exceeding the tolerance limit for three consecutive discharges or liftings shall
not be permitted to discharge or lift cargo from any facility in Nigeria until
satisfactory evidence is provided to the Authority showing that the vessel’s
measurement device is recalibrated afterwards.
PART III — PETROLEUM MEASUREMENT
29.—(1)  A licensee or permit holder subject to the petroleum measurement
provisions of these Regulations shall ensure that measurement systems are installed
and operated at appropriate measurement points in midstream and downstream
petroleum operations.
(2)  Where a licensee or permit holder fails to install or operate an appropriate
measurement system within 30 days after commissioning of a facility, the Authority
may direct a third-party to install or operate a measurement system for the
facility, and the licensee or permit holder who has failed to install or operate the
measurement system shall be responsible for the costs incurred by the third-
party so directed by the Authority.
(3)  The appointment of a third-party by the Authority to install or operate
a measurement system shall be through competitive bidding.
(4)  A licensee or permit holder under subregulation (2) of this regulation
shall be notified by the Authority prior to the appointment of the third-party, who
shall install or operate the measurement system.
30.  A licensee or permit holder subject to the petroleum measurement
provisions of these Regulations shall —
Ship and
shore
differences
Requirement
of
measurement
systems
Quality of
metering
activities