Library / B 827 Federal Republic of Nigeria Official Gazette No. 109
B 827 Federal Republic of Nigeria Official Gazette No. 109

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B  840
(3)  A licensee shall submit to the Authority in the prescribed format and
within the specified time information relating to its midstream and downstream
petroleum operations installations, structures, utilities, plants, pipelines,
processing or other facilities for maintenance, review and update of the
database.
(4) The Authority may issue annual publications of the database to the
public.
PART VII — ESTABLISHMENT AND ADMINISTRATION OF A DECOMMISSIONING
AND  ABANDONMENT FUND
24.—(1) There shall be established for each licence (where a facility
requires decommissioning and abandonment) a Decomissioning and
Abandonment Fund (“Fund”), not later than 120 days from the date of
commencement of operations in the case of a new licence, or one year from
the effective date of these Regulations for existing licenses in midstream and
downstream petroleum operations.
(2)  The Fund shall be established by the licensee in respect of petroleum
operations under the licence, for the purpose of fulfilling its obligations and
liabilities with respect to decommissioning and abandonment under a Plan.
(3)  A licensee shall notify the Authority in writing of the establishment
of the Fund under subregulation (1) not later than 14 days from the date of
establishment of the Fund.
(4)  The Fund shall be in the form of an escrow account held by a
financial institution that is not an affiliate of the licensee.
(5)  The Authority shall be a party to the escrow agreement in respect of
the escrow account in subregulation (4) and shall have access to the funds in
the escrow account under the provisions of this regulation.
(6) The escrow account shall be kept free from any encumbrance from
creditors, including a charge, pledge, guarantee or a letter of credit.
(7) The financial institution under subregulation (4) shall be a Tier 1
commercial bank licensed by the Central Bank of Nigeria and shall pass stress
tests conducted by the Central Bank of Nigeria on a semi-annual basis for the
entire life of the decommissioning and abandonment escrow, and where the
financial institution fails to meet the stress test, the funds in the escrow account
shall be transferred within three months to an escrow account in another
financial institution that meets the stress test.
(8) The financial institution referred to in subregulation (7) shall be
domiciled in Nigeria and the escrow account shall be interest-bearing with
any accrued interest being part of the Fund.
Establishing
a Decommi-
ssioning and
Abandonment
Fund