Guidelines for Bunkering Operations in Nigeria (II)

PROCEDURE FOR LICENSING BUNKERING COMPANIES

Licences issued under these guidelines shall have a validity of one calendar year and all fees paid herein are non-refundable.

NEW APPLICATION

Applicants shall be required to make a presentation to the DPR on planned bunkering operations. This shall include, but not limited to, a comprehensive Health, Safety and Environment (HSE) plan, proposed business plan, and Nigerian Content plan for next three years. The following shall apply to new applications:

a.       Application for a NEW Licence shall be made on the prescribed form (Appendix I) issued by the DPR.

b.      Application fee of US$ 10,000 (or equivalent in Naira), Accreditation fee of US$ 50,000 (or equivalent in Naira) and Vessel/ Motorised Barge License fee of US$ 10,000 (or equivalent in Naira). All these fees should be made payable to Federal Government of Nigeria - DPR Fees Account.

c.       Administrative fee of US$ 5,000 (or equivalent in Naira) payable to the Department of Petroleum Resources.

d.      Bunkering Vessel Inspection/ Verification fee of US$ 1,000.00 (or equivalent in Naira) per vessel payable to the Department of Petroleum Resources.

e.       The following documents shall accompany the application form:

i.        Evidence of payment of taxes in the last three (3) years (tax clearance certificate).

ii.      List of approved communication equipment installed in the various offices and business premises with proof of ownership.

iii.    Certificate of Incorporation, Memorandum & Article of Association and form CAC 07 & CAC 02.

iv.     Locations, addresses and capacities of facilities to be used for storage. The minimum requirement is 5,000 MT.

v.       Full description of vessel owned/ leased by applicant, including name, age, tonnage, flag, etc. The maximum deadweight of a bunkering vessel allowed is 5,000 MT.

vi.     Request for vessels tank calibration shall be made to DPR. The calibration exercise shall be mandatorily witnessed by DPR representative(s) and the table generated shall be forwarded to the DPR for approval. The calibration exercise shall be carried out every five (5) years

vii.   Current fire fighting certification of vessels by the relevant regulatory agencies.

viii. Certification of inspection of the vessel by NIMASA.

ix.     Nigerian Ports Authority (NPA) Certification or Permit for every vessel.

x.       An annual report on state of the vessel from a DPR accredited inspector (surveyor).

xi.     Copy of certificate of insurance for pollution liability with coverage of a minimum of twenty million US dollar (US$ 20 million) (or equivalent in Naira)

xii.   Evidence of competence in bunkering operations relating to trained personnel, equipment by NIMASA

xiii. Bunkering operations procedure manual.

RENEWAL APPLICATION

The following shall apply to renewal applications:

a.       Application for renewal of licence shall be made on the prescribed form (Appendix 1) issued by DPR.

b.      Renewal fee of US$ 25,000 (or equivalent in Naira) per annum and Vessel/ Motorised Barge License fee of $10,000 (or equivalent in Naira) per annum payable to Federal Government of Nigeria - DPR Fees Account.

c.       Administrative fee of US$10,000 (or equivalent in Naira) payable to the Department of Petroleum Resources.

d.      Bunkering Vessel Inspection/ Verification fee of US$ 500 (or equivalent in Naira) per vessel to the Department of Petroleum Resources.

e.       Every licensee shall file an application for the renewal of a licence at least one calendar month before the expiry date of the current licence. Failure to comply shall attract penalty as specified in Section 5.0

f.        All licensed bunkering companies will be required to submit evidence of the quantities of bunker fuels supplied in the last twelve months (by presentation of copies of bunker receipts with corresponding distribution data for each delivery)

g.       The following documents shall accompany the renewal application form:

i.                    Copy of the expired licence.

ii.                  Annual returns of bunker fuels volumes, locations/positions with bills of lading for all cargoes loaded.

iii.                Evidence of payment of taxes in the past three (3) years (tax clearance certificate).

iv.                Current fire-fighting certification of vessels by the relevant regulatory agencies.

v.                  Certification of vessel’s inspection by NIMASA

vi.                Nigerian Ports Authority (NPA) Certification or Permit for every vessel.

vii.              An annual report on the state of the vessel from a DPR accredited inspector (surveyor)

viii.            Copy of certificate of insurance for pollution liability.

ix.                 Copy of vessel re-certification if due.

NOTE: This information is from the Department of Petroleum Resources (DPR) of the Federal Republic of Nigeria. It is prone to review and update from time to time. However, this is the currently reviewed version for 2013 to date.

We are poised to giving you the best and up-to-date information on the Oil & gas sector of the national economy especially from Nigeria. Fell free and convenient to send in your questions and inquiries for clarification. The best gift to successful business is information and that is why we are here to serve you into business accomplishment. What else would you have preferred?

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GUIDELINES FOR BUNKERING OPERATIONS IN NIGERIA

Department of Petroleum Resources 2014

VERSION: 2013

REVISION: 2006

INTRODUCTION

These guidelines are made pursuant to Sections 9(1)(e) and 4(1) of the Petroleum Act 1969 (CAP P10 LFN 2004) and Section 48(7) of the Petroleum Regulations 1967 (CAP P10 LFN 2004) and shall apply to all vessels engaged in bunker fuel business/ trade within the territorial and internal waters in any part of Nigeria.

The Petroleum Industry is regulated and monitored by the Ministry of Petroleum Resources through the Department of Petroleum Resources in all matters related to petroleum exploration, production, processing and marketing.

Oil Companies, both producing and marketing, operate under licences, permits or leases granted by the Ministry pursuant to the provisions of the Petroleum Act and specific regulations for activities that include, exploration, production, processing and marketing including transportation and bunkering of petroleum products.

The approval of the Honorable Minister of Petroleum Resources is therefore required for the granting of a Bunkering Licence to successful applicant as provided for under Section 48 (7) of the Petroleum Regulations 1967.

The DPR will monitor fuel/ oil transfer operations based on the level of risk, both personnel and environmental, volume amount of fuel/ oil, familiarity with company operations, procedures, quality and track record. DPR may stop any bunkering operations or prohibit planned operations due to safety concerns or unacceptable

risk.

The purpose of these guidelines shall be to regulate, in an orderly and effective manner, all aspects relating to bunkering activities in Nigeria.

DEFINITIONS

1.       Bunkering means the process of supplying fuels, including but not limited to, Automotive Gas Oil (AGO), Fuel Oil, Liquefied Natural Gas (LNG) & lubricating oils to users in the marine environment.

2.      Licensed Bunker Supply Vessel refers to bunker vessel, ship, or barge licensed by the Department of Petroleum Resources to deliver or dispense bunker fuels and /or lubricating oils to ocean-going vessels.

3.      Bunker Receiving Vessel refers to the vessel receiving bunker fuels and lubricating oils.

4.      Bunker Fuels include but not limited to Fuel Oils, Automotive Gas Oil (AGO), Liquefied Natural Gas (LNG) and lubricating oils used in the marine environment.

5.      Licensed Bunker Supplier or Bunkerer refers to a company licensed by the Department of Petroleum Resources to supply bunker fuels to end users within Nigerian waters.

GENERAL REQUIREMENTS

Applicants shall be eligible to be licensed under these Guidelines upon satisfying the following requirements:

i.                     Applications for licence to engage in bunker fuel supply and trading shall be made in the manner described in Section 1.3 below and in the form prescribed in Appendix I.

ii.                  All companies shall be duly incorporated and registered for Bunkering business in Nigeria.

iii.                Applicants for Bunkering Licences may have Memorandum of Understanding (MOU) with reputable Bunker Fuel trade partners, locally or internationally.

iv.                Applicants for Bunkering Licences must show evidence of technical and financial capabilities which will be verified by the DPR.

v.                  Bunkering licence applicants shall have functional offices with technically efficient communication equipment/ facilities capable of supplying operational data in real time to a portal created by DPR in a format to be specified by the Department.

vi.                All bunkering companies shall have a well-equipped laboratory for quality control of their products.

vii.              Applicants shall submit an Oil Spill Contingency Plan.

viii.            Applicants shall submit an Emergency Response Plan.

ix.                 Vessels owned or leased for operations must meet applicable International Bunkering Safety Standards.

x.                   Ship/ Vessels to be utilized for mobile Bunkering Operations in Nigeria MUST be listed in the Lloyds, Bureau-Veritas or any of the internationally recognized Classifications, and evidence of such registration shall be provided by the applicant.

xi.                 Design of static or jetty based bunkering facility including architectural, engineering, foundation safety and all other designs that would assist the DPR in determining the suitability of the facility.

xii.               Motorised barges to be utilized for Bunkering Operations must be registered with the Nigerian Maritime Administration and Safety Agency (NIMASA) and evidence of such registration shall be provided by the applicant.

xiii.             Only double hull vessels shall be used in bunkering operations.

xiv.             All bunkering companies shall have tracking and automatic sampling devices installed on their vessel(s).

Curled from the stables of the Department of Petroleum Resources (DPR) of the Federal Republic of Nigeria.

For good Oil & Gas/Petroleum businesses in Nigeria, for your need of Oil & Gas Property such as Tank-farms, Petrol filling stations and lands for such, for genuine sellers of BLCO etc from Nigeria, Call: +234 803 887 7166.

Introducing AIREASON LIMITED: An Efficient Oil & Gas Services Company in Nigeria

EXECUTIVE BRIEF

AIREASON LIMITED is an incorporated limited liability company in Nigeria with office in Blantyre Street, Wuse 2 - Abuja. The company has robust network in terms of outlets and associates across Nigerian oil and gas sector.

The firm (AIREASON LIMITED) is registered with the Corporate Affairs Commission (C.A.C) of the Federal Republic of Nigeria to carry on business objectives in the oil and gas sector encompassing the following;

• General research and consultants
• Information and strategy
• Brokerage, trades and general merchants
• Distributors and suppliers of general goods and commission agents
• Manufacturers’ representatives, agents, facilitators and general contractors
• Marketing, sales and distribution

OUR VISION STATEMENT

 “To be a super brand in production, marketing and sales of oil and gas products across the globe”

OUR MISSION STATEMENT

“To make our customers proud associates through excellent service delivery, while meeting the aspirations of our stakeholders”

CORE VALUES AND BUSINESS PRINCIPLES

·         Trust

·         Integrity

·         Group mind

·         Efficiency

·         Flexibility

DISCRIMINATING COMPETENCES

·         Customer – Centered

·         Innovative

·         Socially Responsible

AIREASON LIMTED is wholly owned by Nigerians and managed by experienced professionals across various disciplines.

STRATEGIC OIL AND GAS BUSINESS FACILITATOR

Owing to our relationships, exchanges and experience within the sector, we efficiently engage in the following;

1.    Sourcing and getting of Nigerian  Bonny Light Crude Oil (BLOC) for our clients such as;

a.    Refineries

b.    Representatives of refineries

c.     Authorized purchasers

d.    Oil & Gas merchants

e.    Etc.

2.    We broker deals in other petroleum products such as;

a.    Automotive Gas Oil (AGO)

b.    Premium Motor Spirit (PMS)

c.    Dual Purpose Kerosene (DPK)

d.    Low Pour Fuel Oil (LPFO)

e.    Etc.

3.    We also acquire/sale, lease/rent oil and gas storage facilities and property for our clients viz;

a.    Tank-farms

b.    Jetties

c.    Petrol filling stations

d.    Refineries

e.    Lands for the purposes of either a, c, or d above.

   With expert knowledge and grasp of the workings of the system, we are also in good relationship with the Department of Petroleum Resources (DPR) of the Federal Republic of Nigeria in areas of oil and gas property, approvals for owning and operating facilities in Nigeria such as petrol filling station, tank-farms, jetties, refineries etc.

However, we are looking out for capable refineries with proof of fund (POF) to deal with in terms of procuring them products from Nigeria. We currently have BLCO for sale through our various allottees and sellers in various terms as TTO, TTT, CIF and FOB.

On request, we are ready, willing and able to send our procedures to intending/prospective client with vow for conclusive business initiation.

We also, as stated above, deal with certified mandates to buyers such as refineries and the like.

Signed by: Management
Tel: +234 803 887 7166

BLCO CIF TRANSACTION PROCEDURE (Selling).

 Procedure of Transaction CIF

CIF GHANA  12/4

1. Seller issues contract (SPA)

2. Buyer and Seller sign and seal contract (SPA) including banking coordinates and buyer shall return the said contract within 48hrs. The electronic signed copy by both parties is considered legally binding and enforceable and must not be changed. The executed SPA is lodged in their respective banks. Buyer returns SPA with ATB/NOR format as the case may be.

3. Within 48hrs of signing of the SPA by Buyer and Seller, Buyer’s Bank shall issue by swift to Seller’s Bank, POF MT799 Block Fund in favour of Seller (A copy of the swift shall be sent to the seller). Upon confirmation of the Buyer's POF MT799 Seller release full cargo document to buyer. 3.1.  OR Buyer nominates his super cargo/inspector for physical confirmation and inspection all at buyer’s cost amounting to N10m (TEN Million Naira) only.  This covers inspection activities inside Nigerian waters only.

4. Upon confirmation of Seller's loaded vessel by buyer’s representative, Buyer's bank issues via SWIFT fully Unconditional, Irrevocable, Confirmable, Callable and Transferable Standby Letter of Credit (SBLC) from a first class Western European or North American bank to the Seller’s bank while retiring the Swift MT799 and advanced transmission copy to Seller by e-mail for cross-verification/confirmation with his bank,

5. Upon confirmation of buyer’s payment instrument, Seller gives to the Buyer all Loading Documents. Vessel’s captain will provide NOR to the Buyer’s POD.

7. The Harbor Master shall acknowledge the receipt of the NOR from Captain of the seller’s vessel. The harbor Master shall send a confirmed POD to the vessel Captain for issuance of ETA.

8. The Seller shall establish full communication and control between the Buyer and the Captain of the vessel.

9. The Seller shall prepare the Logistics, obtain security clearance and cause Vessel Master to proceed for Q&Q Inspection by any nominated independent inspector of the buyer at a preferred location. (Where applicable).

10. The Captain of the vessel shall issue a confirmed ETA after a successful Q&Q report.

11. The terminal shall then; (a). Register all documentation in Buyers name. Such documentation shall be Confirm at the Terminal. (The documentation shall include valid BOL, Warrant of Title, and inspection report. (b). Clear the vessel out of Nigeria waters and sail to buyer’s POD with required documentation upon full authentication/reconfirmation of buyer’s Instrument.

12. Within 24hrs after berthing at POD, buyer’s Inspectors shall again carry out final Q&Q Inspection of cargo and issue the report to the Seller, Buyer, Captain, Seller’s Bank and Buyer’s Bank respectively.

13. The Seller shall collect all stipulated cargo/marine documents, Invoice and forward same to Buyer /Buyer’s Bank for payment. Buyer’s Bank shall within three (3) banking days after receipt of all the transaction documents as enumerated in this SPA, make SWIFT cash payments for cargo and commissions.

14. Vessel discharges into Buyer's shore tanks.

Inquiries:

Tel: +234 803 887 7166

Email: kingsolkem@gmail.com

Skype: kemka.ibeji