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

Page 53 of 82
B 2155
121.—(1) Materials and equipment confiscated by the Authority may be
disposed of by —
(a)  sale by public tender;
(b)  sale by public auction;
(c)  outright sale at a fixed price;
(d)  donation to a deserving cause;
(e)  destruction, dumping, burying or burning; or
(f )  any other method as may be determined by the Authority.
(2)  Where the disposal is by public tender, the award in the disposal of
confiscated materials and equipment shall be made to the highest responsive
bidder, whose bid meets or exceeds  the reserve price and the procedure shall be
through open bid, restricted bid or request for quotation.
(3)  Where the disposal is by public auction, the Authority shall use an
auctioneer from a pre-qualified list or appoint one through an appropriate
competitive and transparent method.
(4)  The Authority may opt for outright sale at a fixed price where some of
the items to be disposed may be obtained by displaying goods for sale with a
market price and in choosing this method, the Authority shall consider the cost
of valuing the assets and advertising the subject materials and equipment.
(5) The Authority may opt to use conversion or recycling of materials and
equipment as a disposal method –
(a)  where the materials and equipment have no identifiable residual
usefulness and may still have some value that may be obtained through recycling
or conversion into another form;
(b)  on grounds of public interest, legal issues or environmental
considerations; or
(c)  where there is the potential of obtaining monetary return from
conversion or recycling.
(6)  The Authority may destroy, dump, bury or burn confiscated materials
and equipment only when all other disposal options have been eliminated and no
conversion into another form or recycling possibilities can be identified.
(7)  Where materials and equipment are being disposed of by means of
public tender, all tenders shall be in writing and submitted to the Authority.
(8)  The Authority may cancel the sale of any confiscated material and
equipment offered for sale by auction or tender, where no bid or tender meets
the minimum bid or tender set before the sale or the Authority does not consider
any of the bids or tenders acceptable.
(9)  Where two or more tenders in respect of materials and equipment are
in the same amount, the first tender received by the Authority shall take
precedence.
Disposal
method