Section 111: Matters Relating to Licence Applications.

1 The Authority may grant, renew, modify or extend individual licences or permits, provided that, where it relates to the establishment of refineries the licence shall be issued by the Minister on the recommendation of the Authority.

2 The Authority shall only grant a licence for midstream or downstream petroleum operations, where—
a it meets the technical standards required for petroleum operations based on good international petroleum industry practices;
b the location and size of the area occupied by the facilities or right of way is acceptable to the Authority;
c it meets the health, safety and environmental standards, as determined by the Authority; and
d it provides for the efficient and economic use of facilities and pipelines.

3 The Authority shall only grant a licence for midstream petroleum operations where it—
a does not involve excessive capital or operating expenditures;
b includes an acceptable environmental management plan under section 102 of this Act;
c includes a decommissioning and abandonment plan and a decommissioning and abandonment fund that complies with sections 232 and 233 of this Act;
d provides for the elimination of routine natural gas flaring;
e does not relate to midstream petroleum operations that would conflict with a licence already granted; and
f includes—
(i) a detailed programme for the recruitment and training of Nigerians in all phases of petroleum operations handled directly by the licensee or through agents and contractors of the licensee, and
(ii) provision for scholarship schemes, internships, continuous professional development and other training requirements.

4 An application for the grant, renewal or extension of a licence or permit shall—
a be made to the Authority in the form and manner prescribed by regulation;
b be accompanied by the payment of a prescribed fee, where applicable, together with information or documents as prescribed in the regulations under this Act; and
c include a decommissioning and abandonment plan, where the licence contemplates the construction of pipelines, storage tanks, processing or other facilities.

5 The Authority may furnish an applicant for the grant, renewal or extension of a licence or permit, with non-confidential information as may be necessary to facilitate the filing of the application.

6 An applicant for a licence or permit, who is an affiliate of a body corporate that has applied for or holds any other licence or permit shall disclose such relationship to the Authority in its application.

7 The Authority shall consider information presented in respect of an application for a licence or permit, including representations from interested parties in favour of or against the granting, extension or renewal of the licence or permit and shall inform the applicant of its decision within 90 days of the application.

8 Where the Authority has decided to grant a licence or permit, it shall publish a notice of its decision in the form and manner prescribed in regulations issued by the Authority.

9 Where the Authority decline an application, it shall inform the applicant of its refusal of the application, reasons for the refusal and may state a reasonable time within which the applicant may make further representations.

10 The Authority shall consider any representation made by an applicant fora licence or permit on the refusal of an application, where such representation involves new information not previously considered.

11 The Authority shall not consider further application or representation made by an applicant in respect of a refusal of an application previously considered and rejected by the Authority.

12 An applicant that is not satisfied with the reasons given by the Authority for refusal of an application may apply to the Federal High Court for a judicial review.