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Oil Export Permit: FG Unveils New Procedure for Eligibility – Thisdaylive

The Federal Government weekend released the new guidelines as well as the categories of companies eligible to obtain crude oil export permit from the Federal Ministry of Trade and Investment.

After an earlier announcement that it was set to review the procedure to promote transparency and effectiveness, the ministry promptly released the guidelines that saw exporters of crude oil products aggregated under various categories.

According to information released by the ministry, the eligible companies are Nigerian National Petroleum Corporation (NNPC), International Oil Companies (IOCs), Pipelines and Products Marketing Company (PPMC), Indigenous Oil Producing Companies, Major Oil and Gas Marketing Companies and Independent Petroleum Marketing Companies with valid Department of Petroleum Resources (DPR) licenses for storage facilities.

The ministry said the new permit will allow the approved companies to export crude oil, Liquefied Natural Gas, Liquefied Petroleum Gas, Condensates, Refined Products, Lubricants and Grease.

The Federal Government said the new procedure includes application for Export Clearance Permit made on the company’s letter headed paper; duly completed application form E001, attached with a copy of certificate of incorporation of the applying company; the company’s article and memorandum of association.

It also included current production, storage or sales license issued by DPR; current weights and measures department certificate of conformity; original bank reference with committed and explicit statements and three years tax clearance certificate.

The guideline further stipulates that every export permit shall have a duration of 90 days from the date of issue.

“In addition, each exporter of Oil and Gas is required to complete form DV001on the previous exportation for which permit was granted along with copies of all relevant invoices and shipping documents before any subsequent application for an export permit would  be approved.

“Such documents include; relevant invoices, bill of laden, photocopy of approved Form ‘M’, Clean Certificate of Inspection (CCI) issued by government appointed pre-shipment inspection agent, clearance or export duty payment from Nigeria Customs and Excise, detail cargo information, and a proviso that  for  every new application  for a permit, the last permit granted to the company must be surrendered” the ministry said.

The Federal Ministry of Trade and Investment had earlier said it introduced a new procedure for the issuance of petroleum products Export Clearance Permit, which will take effect from the second quarter of 2012 without providing the details.

The review of the process was disclosed by the Ministry’s Permanent Secretary, Mr. Dauda Kigbu, after the stakeholders meeting on the issue was concluded in Abuja.

In his address, the permanent Secretary stated that after due assessment of the current procedure, the Ministry observed a number of anomalies, which included avoidable delays in the form due to bureaucratic bottlenecks and wilful abuse of due process.

According to him, to remedy the situation, the Ministry resolved that the process should be completely overhauled to enable it conform to global best practices.

Kigbu pointed out that the new procedure was not intended to frustrate oil, gas exporters and their businesses but to improve the process at issuance of export Permit in Nigeria.  “The new process is expected to usher in faster, better and more transparent method in issuance of these permits to deserving exporters,” he stressed.

He stated that Government was conscious of the complexity of the oil export business environment and was making efforts to ensure that all obstacles were removed.

About TransformationWatch

TransformationWatch is an online news site founded by Henry Omoregie It is focused on keeping tabs on the Transformation Agenda set out by the Nigerian leadership in the Local, State and Federal Governments. My mission is to observe, analyze and report milestones or slowdowns in promised service delivery in all the facets of governance in Nigeria (2011 and beyond). Readership is open to all Nigerians and friends of Nigeria alike, regardless of Tribe, Religion or Political divide. We are all in this together

Discussion

One thought on “Oil Export Permit: FG Unveils New Procedure for Eligibility – Thisdaylive

  1. It is good to be in the oil and gas industry because we of the Niger Delta are the ones suffering the adverse effects, so let our people with the capacity participate in it.

    Posted by Dave Asei | February 28, 2012, 12:48 pm

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