Library / Page 1 of 67 MIDSTREAM AND DOWNSTREAM PETROLEUM SAFETY AND ENVIRONMENTAL REGULATIONS, 2025
Page 1 of 67 MIDSTREAM AND DOWNSTREAM PETROLEUM SAFETY AND ENVIRONMENTAL REGULATIONS, 2025

Page 52 of 67
Page 52 of 67 
 
(3) Where there is an excess in the Fund after the decommissioning and abandonment has been 
carried out and approved by the Authority, the excess shall be considered for income tax 
purposes and the amount after the withholding of any tax shall be returned to the licensee. 
(4) Where the Fund is not sufficient to cover the decommissioning and abandonment 
expenditure, the licensee shall cover such difference to fulfil the obligations in full. 
107. (1) The Authority shall access the Fund where a licensee fails to comply with the Plan or 
Programme to pay for the performance by a third party of such licensee’s obligations under 
section 232 of the Act. 
(2) The Authority shall access the Fund only after it has provided a written notice to the respective 
licensee of the noncompliance and has been given a reasonable period to rectify the non-
compliance. 
(3) Where the Authority decides to apply the Fund under sub-regulation (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. 
 
Power of the Authority to 
utilise the Fund 
 
108. A licensee shall furnish the Authority, not later than 90 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.   
 
Statements of accounts 
109. (1) An assignment or transfer of interest in a licence under the Act or Regulations, or a licence 
saved under section 311 (9) of the Act, shall include the assignment of obligations to make 
contributions to the Fund under this regulation: 
 
Provided that in any case of such assignment or transfer, the assignor or transferor shall, 
where the funds 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 or transfer of the licence, whether assignors or assignees, 
transferors or transferees, shall be jointly and severally liable for the decommissioning and 
abandonment obligations with respect to a relevant licence. 
Decommissioning 
and 
abandonment liabilities in 
case of assignment 
 
PART XVI — MISCELLANEOUS PROVISIONS 
 
110. The HSE Clearance shall form the health, safety and environmental basis for the issuance or 
renewal of a Licence to Operate. It shall be issued to the licensee upon compliance with HSE 
requirements for the project or operations for which the license is being issued for. 
HSE Clearance as a basis 
for  
issuance or renewal of an 
LTO 
111. The Authority –  
(a) shall determine licensees who may be excluded from the application of the 
decommissioning and abandonment provisions of these Regulations; and  
Exclusions