NIMASA Implements Oil Installations, Wells Levy

NIMASA Implements Oil Installations, Wells Levy

The Nigerian Maritime Administration and Safety Agency (NIMASA) has announced the implementation from April this year, of a Sea Protection Levy (SPL) which oil companies with oil installations, including receiving buoys, oil rigs and pipelines will now be required to pay. Oil companies were informed of the implementation of new rules at a meeting held in Lagos with NIMASA. The new rules were announced in August last year, giving oil companies sufficient time to prepare for its implementation.
According to NIMASA, the rules were introduced in conformity with the International Maritime Organisation’s (IMO) Marine Environment Management Regulations 52 and 53 on Sea Protection Levy and Offshore Waste Reception Facilities. They are intended to enable the creation of a self-funding management system for the maritime environment. The Director-General of NIMASA, Patrick Akpobolokemi, explained that Nigeria ratified the Marine Pollution Convention (MARPOL) in 2012 and the levies, which are already in force, would enable Nigeria to conform with the regulations under the Convention.
The levy payable for offshore installation is N15 million annually, for oil wells is N10 million, while it is N1,500 per cubic metre of pipe line from the high water mark to the termination point offshore. The annual payments will take effect from the first of April each year.
Oil and Gas Press

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