Library / Page | 1 MIDSTREAM AND DOWNSTREAM PETROLEUM OPERATIONS REGULATIONS, 2024
Page | 1 MIDSTREAM AND DOWNSTREAM PETROLEUM OPERATIONS REGULATIONS, 2024

Page 44 of 101
 
 
Page | 44 
 
69. The licensee shall ensure that a pipeline audit is carried out annually 
for the purpose of establishing compliance with the terms of the Licence 
in a manner prescribed in the guideline issued by the Authority. 
Pipeline Audit 
70. Any line-break, encroachment, accident, spill, or dangerous situation 
detected on the pipeline or pipeline right of way shall be promptly 
reported to the Authority. 
Reporting  
71. In addition to such other conditions as may result in the revocation of 
a pipeline or pipeline network licence pursuant to Section 120 of the Act, 
the Authority may revoke a pipeline licence if no construction work has 
commenced within two (2) years after the granting of the licence. 
Revocation of 
licence 
CHAPTER 5 
TERMINALS AND BULK STORAGE 
 
72. (1) A person shall not establish, construct, or operate a – 
 
(a) terminal; or 
(b) bulk storage facility, 
 
 in Nigeria without an appropriate and valid licence granted by the 
Authority. 
 
Authority to 
licence 
terminals and 
bulk storage 
facilities 
 
 
73. (1) A terminal or bulk storage facility for export of petroleum liquids or 
natural gas or its derivatives shall not be designated as an export point 
without a terminal establishment notice made by the Authority 
designating –  
(a) the name of the terminal or bulk storage facility; 
(b) the operational coordinates; 
(c) the type of facility; 
(d) the mooring and export system; 
(e) the delineated safety zone; and 
(f) any other information the Authority may deem relevant.  
 
(2) The Authority shall publish a notification of the terminal establishment 
order in the Federal Government Gazette. 
Terminal 
establishment 
notice 
 
74. (1) An application to establish a terminal or bulk storage facility shall 
be made in the manner prescribed in guidelines issued by the Authority.  
 
(2) The Authority may grant a licence to establish a terminal or bulk 
storage facility upon consideration of the -  
(a) technical viability of the proposed terminal or bulk storage facility;    
(b) economic case for the facility including the potential demand for 
its use; 
Application 
for licence to 
establish