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 841
(9) The revocation or cancellation of a licence shall terminate the licensee’s
interests, rights and access to the escrow account and the Authority shall
have sole and exclusive access and control over the escrow account to the
exclusion of any other person.
25.—(1) The Fund shall be funded by the licensee based on the annual
contributions to be calculated in the manner provided in these Regulations and
contained in the Plan.
(2)  The annual contribution provided for in the Plan shall be —
(a) in USD for a midstream facility and Naira equivalent for a downstream
facility ; and
(b) based on an estimate by the licensee of the applicable
decommissioning and abandonment costs, projected forward on a nominal
basis, and divided by the estimated life of the facilities and the reasonable
cost estimate shall be approved by the Authority.
(3) The estimated life of the facilities referred to in subregulation (2)
shall be based on the —
(a) estimated design life of facilities used for midstream and downstream
petroleum operations ; and
(b)  period for which the safe operations of the facilities were designed,
in case of facilities used for midstream and downstream petroleum
operations.
(4) The estimates for costs required in these Regulations shall be made
based on international petroleum industry best practice.
(5)  The annual contribution shall be deposited to the Fund on or before
31st December of each calendar year.
(6)  The estimated annual contribution under subregulation (2) shall be
reviewed every five years following the first submission or as required during
the period of the licence or until the cessation of petroleum operations to
which the Plan relates.
(7)  Contributions to the Fund shall be eligible for cost recovery and shall
be tax deductible, provided that the cost of executing the Programme disbursed
from the Fund shall not be eligible for cost recovery or deductible for tax
purposes.
26.—(1) The Fund shall be exclusively used to pay for decommissioning
and abandonment costs.
(2)  A licensee shall have access to the Fund only on receipt of the
written approval from the Authority under these Regulations to undertake the
Programme and shall use such funds only for conducting approved Plan.
Contributions
to the Fund
Utilisation
of the Fund