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

Page 26 of 82
B  2128
41.  The Authority shall have power to witness and supervise the
development of metering systems through —
(a)  meter selection;
(b)  conceptual design;
(c)  detailed engineering;
(d)  verification of accuracy of sampling systems, flow computers, gas
chromatograph, proving systems and other critical components;
(e)  fabrication inspection; and
(f )  factory and site acceptance tests.
42.—(1)  The Authority shall approve petroleum allocation methodologies
prior to implementation.
(2)  A licensee or permit holder shall report any cargo loss or shrinkage
complaints to the Authority within 14 days of such complaints being made.
(3)  A licensee shall not apply a shrinkage, measurement loss or decanting
method to petroleum liquids or natural gas or its derivatives without the prior
approval of the Authority.
PART IV — PETROLEUM PIPELINES
43.—(1)   A licensee or permit holder shall not establish, construct or
operate a pipeline or network for the transportation and distribution of petroleum
liquids or natural gas or its derivatives without an appropriate licence granted by
the Authority.
(2)  A person shall not for its own account, with third-party access provisions
or as a common carrier, establish, construct or operate the following facilities
without an appropriate licence granted by the Authority —
(a)  gas transportation or distribution pipeline for conveying natural gas or
its derivatives;
(b)  petroleum liquids transportation or distribution pipeline for conveying
petroleum liquids or its derivatives;
(c)  gas distribution network for distribution of natural gas or its derivatives
to customers or end-users;
(d)  petroleum liquids transportation network for conveying petroleum
liquids or its derivatives; and
(e)  gas transportation network for conveying natural gas or its derivatives.
(3)  A pipeline for effluent discharge, produced water or process water or
any other pipeline used to support midstream or downstream petroleum operations
shall be registered with the Authority.
(4)  The design, construction, testing, environmental standards and operation
of a pipeline shall be as prescribed by the Authority.
Operations
management
and
supervision
of metering
systems
Measurement
loss and
shrinkage
Prohibitions