Obtaining a license from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) formerly DPR under the Oil and Gas Industry Service Permit (OGISP), can be a complex and time-consuming process, and it is important to understand the specific requirements and processes involved.
Submit an Application (For Online processing)
The first step in the licensing process is to submit an application to the NUPRC (https://elps.nuprc.gov.ng/Account/Login).
Create a Company Account at www.ogisp.nuprc.gov.ng
Login with your Credentials (Email and Password) to begin the online Application Process which include:
Select Application type
Select Permit Category
Select Services you wish to render in the industry
Make Payment for the Permit through any of the acceptable payment methods
Upload the required documents and submit application.
The application should include all necessary documentation, such as a business plan, financial statements, and evidence of technical and management capability for Major and Specialised categories.
Basically, there are three classes of NUPRC permits issued in Nigeria:
The General Purpose: This class includes Minor Supplies, Works and Maintenance services and do not necessitate specialised or certified skills. Applicants are required to choose only one (1) service/job from the three (3) classifications.
The job classes under general purpose category are as follows:
WORKS (Artisans): This includes Minor Welding, Minor plumbing, Minor Painting, and Photographic.
MAINTENANCE (Artisans): This includes Minor Civil, Minor Mechanical and Minor Electrical.
SUPPLY: This includes Minor Civil Maintenance Materials, Minor Mechanical Maintenance Materials, Minor Electrical Maintenance Materials, Plumbing Materials, Minor Computer Accessories/Consumables, Welding Materials, Minor Catering Services (Provision of Snacks and Beverages for Meetings, etc.)
Others as may be determined by the Commission.
Major Category: Under the Major Category applicants are expected to have relevant and verifiable technical/special skills. There are many job groups in this category. Some of them are Consultancy, Aviation support, laboratory, Protocol and Logistics and so on.
Specialised Category: Under the Specialised Category, applicants are required to possess relevant and verifiable technical/special skills with different job categories like Offshore Pipeline laying and construction, Onshore Pipeline laying and construction and many others.
Below is a combined Comprehensive list of all required documents, though majority of it is for Major and Specialised categories:
- Certificate of Incorporation
- A certified true copy of Memorandum and Articles of Assoc.
- Other company incorporation documents, such as Status report, CAC Form 1.1 or CAC Form CO2 & CAC Form CO7
- Current Tax Clearance Certificate
- List of Equipment/Facility available to the company
- Business plan
- Financial statement
- Receipt of payment of the Employee’s Compensation Scheme (Nigeria Social Insurance Trust Fund)
- Medical Retainership Agreement with a hospital.
- Company’s Profile
- Staff’s list (including the position and qualification of staff)
- DPR endorsed the request for the expatriate quota (where applicable)
- List of approved expatriate quota position and their Nigerian understudies (where applicable)
- Proposed training programme for Nigerian staff for the current year
- Registration by a relevant professional body (where applicable)
- Technical agreement or MOU with Nigerian Company/accredited laboratory (where applicable)
- Health, Safety, Environment and Community (HSEC) Management System.
The business plan should detail the applicant’s proposed activities, including the type of operations to be conducted (e.g. exploration, production, development), the proposed budget, and the expected timelines for these activities.
The financial statements should provide information about the applicant’s current financial position and ability to fund the proposed activities.
The evidence of technical and management capability should demonstrate the applicant’s experience and qualifications in the oil and gas industry, including the qualifications and experience of key personnel who will be involved in the proposed activities.
Pre-Qualification (For Major/Specialised Categories)
After the application is submitted, the NUPRC will conduct a pre-qualification process to determine if the applicant meets the necessary requirements.
This process may involve an evaluation of the applicant’s financial and technical capabilities, as well as a review of the applicant’s business plan and proposed activities.
The NUPRC will assess the applicant’s ability to financially and technically carry out the proposed activities, including the proposed budget and the qualifications and experience of key personnel.
Additionally, the NUPRC will evaluate the proposed activities to ensure that they comply with Nigerian laws and regulations, and that they will not have a negative impact on the environment or local communities
Bidding (For exploration or production oil and gas license or lease)
If the applicant successfully passes the pre-qualification process, they will be invited to participate in a bidding process for the license.
The bidding process typically involves submitting a bid for the license, which will be evaluated by the NUPRC based on factors such as the applicant’s technical and financial capabilities, as well as the proposed terms of the license.
The NUPRC will evaluate the bids based on the terms proposed, including the proposed work program, budget and proposed duration of the license.
They will also assess the applicant’s technical and financial capabilities and their ability to carry out the proposed activities.
License Agreement
If the applicant is awarded the license, they will be required to sign a license agreement with the NUPRC.
The license agreement will outline the terms and conditions of the license, including any obligations and responsibilities of the licensee.
The terms of the license agreement will be based on the proposed work program, budget and proposed duration of the license, which were submitted as part of the bidding process.
Obtaining Necessary Permits and Approvals
Before beginning any activities related to the license, the licensee must obtain any necessary permits and approvals from other government agencies.
This may include environmental permits, safety permits, and approvals from local communities.
For example, Environmental Impact Assessment (EIA) is a requirement for any exploration, production, or development of oil and gas operations, this will evaluate the environmental and social impact of the proposed activities, and make recommendations for mitigating any negative impacts.
In addition, the licensee will be required to obtain the necessary approvals from the Nigerian National Petroleum Corporation (NNPC) before beginning any activities related to the license.
It is important to note that the specific requirements and details of the licensing process can vary depending on the type of license being applied for, and the current regulations and policies in place.
It is advisable to consult with the official website of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) or a Corporate Legal Consultant for more information.
Okpi, Ibe Chinedu is the Principal Partner in the Law Firm of Ibe, Chido and Associates ( www.ica.ng ) with extensive knowledge in Corporate and Commercial Law Practice. He can be contacted via phone: 08180524686 or email: info@ica.ng
