Library / PETROLEUM INDUSTRY ACT, NO. 6, 2021 MIDSTREAM AND DOWNSTREAM PETROLEUM PREVENTION OF ANTICOMPETITIVE PRACTICES AND BEHAVIOUR REGULATIONS, 2026 ARRANGEMENT OF REGULATIONS

PETROLEUM INDUSTRY ACT, NO. 6, 2021 MIDSTREAM AND DOWNSTREAM PETROLEUM PREVENTION OF ANTICOMPETITIVE PRACTICES AND BEHAVIOUR REGULATIONS, 2026 ARRANGEMENT OF REGULATIONS

Page 52 of 127

Open the PDF at page 52

52 
 
(5) Revision of the Code of Conduct 
The Authority may revise or update the Code from time to time to reflect 
evolving market conditions, international best practices, and regulatory 
experience. 
(6) Legal Effect of the Code of Conduct  
Any breach or non-compliance with the Code of Conduct issued under these 
Regulation shall be deemed a breach of this Regulation and shall attract 
penalties and enforcement actions as set forth in the relevant sections of these 
Regulation and the Act. 
(7) verification of Compliance with the Code of Conduct 
 The Authority may conduct periodic audits, require self-assessment reports, or 
undertake investigations to verify compliance with the Code. 
(8) Enforcement 
In the event of persistent or material breach, the Authority may impose 
sanctions including: 
    (a) administrative fines; 
    (b) structural separation orders; 
    (c) suspension or non-renewal of licences held by the offending affiliate or 
group. 
 
46. Compliance Reporting and Verification for Separated Operations 
1. Periodic Compliance Reporting Obligation 
Any licensee subject to structural, operational, accounting, or legal separation 
requirements under this Regulation or any directive issued by the Authority shall 
submit periodic compliance reports as prescribed by the Authority. Such 
reports shall include, but not be limited to: 
    (a) Separate audited financial statements for each division or affiliate 
subject to separation; 
    (b) A Certification of Non-Discrimination and affiliate neutrality measures, 
signed by a designated compliance officer; 
   (c) Separation measures and governance safeguards or a detailed 
organisational chart reflecting distinct management structures and reporting 
lines; 
   (d) Certification of compliance with the Code of Conduct or a statement of 
compliance with the Code of Conduct for Affiliate Relations; 
   (e) Transfer pricing policies and intra-group transactions or any related-party 
transaction registers or internal transfer pricing disclosures; 
(f) Cross-subsidisation prevention measures. 
2. Reports must be certified by an independent auditor. 
3. Compliance reports shall be filed annually, or at such frequency as the 
Authority may specify. 
 
47. Audit and Inspection 
(1) The Authority may at any time conduct targeted or general audits of the   
separated business segments of a licensee to verify: 
    (a) the independence of operations between regulated and competitive 
segments;