o&g pipeline systems laws and regulations nigeria

8/20/2019 O&G Pipeline Systems Laws and Regulations Nigeria

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Department Of Petroleum Resources

REGULATIONS AND LAWS GOVERNING OPERATIONS

OF OIL AND GAS PIPELINES IN NIGERIA.


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ORDER OF PRESENTATION

Objective

Concept definition

Types/Applications of Pipelines

Problems Associated with Pipeline Operations in Nigeria

Laws and Regulations Governing Pipeline Operations in Nigeria

Other agencies involved in pipeline management

Penalties for not comply with the Laws and Regulations

CONCLUSION


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OBJECTIVES

To acquaint the participants on the Government

regulations and laws governing the operations of

oil and gas pipelines in Nigeria

The interest being to highlight requirements for

effective Pipeline Asset Management


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• DPR (Department of Petroleum Resources)

Arm of Government in charge of monitoring and enforcing lawsand regulations in the Oil and Gas industry in Nigeria.

• Pipeline

oil pipeline means a conduit for the conveyance of mineral oils,

natural gas and any of their derivatives or components, and alsoany substance (including steam and water) used or intended to beused in the production or refining or conveying of mineral oils,natural gas, and any of their derivatives or components .

• Laws

A rule of conduct or procedure established by custom, agreement,or authority.

• Regulations

A principle, rule, or law designed to control or govern conduct or

practice.

Concept Definition


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Usually we classify pipelines based on size and usage

a) Flow-lines:

usually of sizes 6” to 8” diameter. They convey hydrocarbon fluids fromwellheads to the inlet manifold of the flow-stations or productionplatform

b) Trunk-lines: Usually of sizes 6” to 24” diameter. They transportproduced hydrocarbons from:

1. Flowstations to storage tanks or terminals

2. Storage terminals to Refineries

c) Loading Lines: Usually of sizes 30” to 40” diameter. They transportproducts from:

1. Refineries to Depots and Jetties

3. Jetties to off-take tankers

4. Intercity pipelines which convey fuel to consumers

Types/Applications of Pipelines


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Problems Associated with Pipeline Operations in

Nigeria

1. Pipeline ageing

2. Pipeline corrosion

3. Vandalization

4. Poor measurement habit

5. Difficult terrain of the Right Of Way (ROW)

6. No on-line leak detection system

7. Poor maintenance record

8. Unavailability of intelligent pigs

9. Pipeline route being inhabited due to increase urbanization

These problems necessitated the promulgation of Laws and Regulations

by DPR to harmonize pipeline operation in Nigeria.


7/21Department Of Petroleum Resources

Laws and Regulation Governing Pipeline

Operations in Nigeria

a) Statutory Requirement for Pipeline laying.

1. Permit to Survey pipeline routes (PTS)

2. Oil pipeline Licence (OPLL)

b) Pipeline Acts and Regulations1. Petroleum Ordinance # 145 of 1956

2. Oil pipeline ACT CAP 338 Laws of the Federation of Nigeria 1990

3. Oil and Gas Pipeline Regulation 1995

4. Mineral Oils and Safety Regulations (MOSR) 1997

5. Guidelines and procedures for the construction, operations and

maintenance of oil and gas pipelines and their ancillary facilities.

6. Environmental Guidelines and Standards For the petroleum

Industry in Nigeria



• RegulationsThe Oil Pipeline ACT CAP 338 LFN 1990 made provisions for1. The right of way of the Landowners and those of lease owners2. Permit to Survey, compensation, rights and obligation of holder

of a license3. Restrictions upon entry in respect of venerated lane

4. Penalty for hindering the taking possession of land etc.

• Permit To Survey• Mandatory for surveying a route for a proposed pipeline or for

surveying a route of an existing pipeline prior to renewal of thepipeline license

• Has a two year expiry date• Application fee of N20.00• Application made in ten copies and route of survey adequately

specified

• Procedure involves writing to third parties for consent

Highlights of Laws and Regulations



• Oil Pipeline License (License to Construct/Operate)

a. Required prior to construction and laying of pipelineb. Applied for within the validity period of the permit to surveyand in line with provision of Part III of the Oil Pipeline ActCAP 338 LFN 1990

c. License fee of N50d. Application made in ten copies and coordinates of survey

specifiede. Procedure involves writing to third parties

• Inspection and Testing Pipelines• DPR required one month notice prior to commencement ofpipeline inspection or pre-commissioning

• Protection and Maintenance Monitoring• Visual surveillance of pipeline ROW and plant facilities,• Intelligent Pigging of pipeline to determine wall thickness• Material balance on daily basis to determine leakages

• Pipelines are buried to guard against vandalization

Highlights of Laws and Regulations



On receipt of application for PTS or License in respect of any pipeline, DPR forwards

3rd

party letters, requesting for objections (if any) to the issuance of the license orpermit. The 3rd parties contacted are

For Offshore Pipelines:

Nigeria Port Authority (NPA), and State government

For Swamp Pipelines:

Inland Waterways Authority (NIWA), and State governments

For Land Pipelines:

Federal Ministry of Works and Housing (Highway Division), Nigeria Railway

corporation and State Governments

No objection letters from them are necessary before the grant of the permit or licence.

For the OPLL, Draft Notice shall be published in the relevant National and State

Newspapers in line with the provision of section 8 of the Oil Pipeline Act CAP

338 Laws of Federal Government of Nigeria 1990. Public hearing must be held to

hear objections if any on the date set aside for this purpose.

OTHER AGENCIES INVOLVED IN PIPELINE MANAGEMENT



No person granted a licence to construct a new pipeline or replace an existing

pipeline shall begin construction work unless he has given the Departmentwritten notice of his intention to do so:

The licensee shall, on completion of the construction of the pipeline, give the

Department not less than one month notice of its intention to commence

inspection and testing of the pipeline.

A licensee shall not begin to operate a pipeline unless he has obtained the

approval of the Department, and a written emergency plan for implementation in

the event of systems failure, accidents or other emergencies is established.

Pipeline markers at crossings shall indicate the location of the pipeline and the

name of the operating company.

the right of way (ROW) shall be maintained to provide a clear visibility and give

reasonable access to the maintenance crew.

Any line break, encroachment or dangerous situation detected during regular

patrol of the ROW shall be promptly reported to the Department.

Oil and Gas Pipeline Regulation 1995



Internal corrosion in a pipeline shall be monitored by running an intelligent pig or

other internal survey instrument through the pipeline at least once in 5 years.

A report of the monitoring survey carried out under the paragraph above shall be

sent to the Department.

A licensee who desires to upgrade the maximum operating pressure of his pipeline

shall make an application to the Department stating reasons for the upgrade andthe service record of the pipeline.

A licensee who desires to discontinue the operation of the pipeline system or its

ancillary facilities shall apply to the Department giving at least 3 months notice of his

intention to do so.

Where the abandoned pipeline is to be removed, the licensee shall send to theDepartment the proposed work programme for the removal for approval.

A licensee who desires to resume operations in an abandoned or a discontinued

pipeline shall apply to the Department for approval.

Oil and Gas Pipeline Regulation 1995 Cont’d



Procedure for Inspection, Testing & Protection of

Pipelines

After the construction of a pipeline the Department of Petroleum Resources is

expected to be given one-month notice prior to the commencement of inspection

or pre-commissioning of the pipeline.

Ensure that initial integrity of a pipeline is established through proper design,

material selection and sound construction practices.

Establish a program of condition monitoring and maintenance to ensure that

integrity is maintained when pipeline is in operation.

For pipeline integrity protection, the conventional pipe coating, chemical injection

and intelligent pigging at regular intervals are specified in the regulations.

Standards that DPR has issued to regulate pipeline related activities include; Oil

and Gas Pipeline Regulation as well as Guidelines and Procedure for the

construction, operation and Maintenance of Oil and Gas Pipelines and their

ancillary Facilities.



Pipeline Integrity Management Plan/Programmes

Cathodic Protection System with Monitoring Strategy

Coating Integrity Survey

Chemical Inhibition and Monitoring Strategy

Smart and Intelligent Pigging on all piggable pipelines

Pressure Testing

None-Destructive Testing

Leak Detection Strategy

Risk Management Tools e.g. Risk Base Inspection etc.

Involvement Of Host Communities as a Strategy to tackle Third Party Damage

(Sabotage) incidents on Pipelines

New Technologies that provides information on Cathodic Protection System,

Leakages and Disturbances around pipelines etc.

NB: All pipeline Integrity Management Plan/program will henceforth be witnessed by DPR

representatives and a Safety permit issued before grant of Operational Licence.



Part III Section 7 sub-section (4) of the pipeline ACT CAP 338 states No personother than the holder of a licence shall construct, maintain or operate an oil

pipeline.

Every person who acts in contravention of subsection (4) above shall be guilty

of an offence and shall be liable on conviction to a term of imprisonment not

exceeding two years or to a fine not exceeding one thousand naira or to both

and the pipeline and its ancillary installation removed if the Minister refuse to

purchase such pipeline.

An offender who is required by the Minister under subsection (6) of this section

to have a pipeline or any ancillary installation removed shall make good any

damage done to any land by such removal.




Part V, section 25 of the pipeline ACT CAP 338 states that Every person whoshall willfully hinder or obstruct any person duly authorized from entering upon or

taking possession of or using any land in pursuance of the provisions of this Act,

or who shall molest, hinder or obstruct such person when in possession of such

lands, or shall hinder or obstruct any officer of the sheriff or police officer when

executing a writ of possession, shall be liable on summary conviction to a fine of

fifty naira or to imprisonment for three months.

Section 27, sub-sections (1) & (2) states If there shall be a breach of any of the

terms or conditions upon which a licence has been granted the Minister may by

notice in writing require the holder of the licence to remedy such breach within

such period being not less than three months as may be specified in such notice.

Otherwise, the licence will be revoked.

- PENALTIES Cont’d



Where an offence under this Act which has been committed by a body corporate is

proved to have been committed with the consent or connivance of, or to be

attributable to any neglect on the part of, any director, manager, secretary, or other

similar officer of the body corporate, or any person purporting to act in any such

capacity, he, as well as the body corporate, shall be deemed to be guilty of that

offence and shall be liable to be proceeded against and punished accordingly.

A person who contravenes a provision of Oil and Gas Pipeline Regulation 1995 is

guilty of an offence and liable on conviction to a fine of up to N500,000 or

imprisonment for a term of 6 months or to both such fine and imprisonment.

- PENALTIES Cont’d




Part V, section 25 of the pipeline ACT CAP 338 states that Every person who

shall wilfully hinder or obstruct any person duly authorised from entering upon ortaking possession of or using any land in pursuance of the provisions of this Act,

or who shall molest, hinder or obstruct such person when in possession of such

lands, or shall hinder or obstruct any officer of the sheriff or police officer when

executing a writ of possession, shall be liable on summary conviction to a fine of

fifty naira or to imprisonment for three months.



CONCLUSION

It is our prayer that at the end of this

workshop, will be acquainted with the

necessary requirement for processing,

construction and operation of Pipeline system


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THANK YOU

FOR YOUR ATTENTI0N

o&g pipeline systems laws and regulations nigeria

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