Section 174: Activities requiring a licence for midstream and downstream petroleum liquids operations.

1 Except in accordance with an appropriate licence issued by the Authority, a person shall not undertake the following activities with respect to midstream petroleum liquids operations -
a establish, construct or operate a terminal or other facility for the export or importation of crude oil or petroleum products;
b establish, construct or operate a crude oil refinery;
c establish, construct or operate a pipeline for the bulk transportation of petroleum liquids;
d engage in bulk transportation of petroleum liquids by rail, barge or other means within Nigeria;
e establish, construct or operate a facility for the bulk storage of petroleum liquids;
f establish, construct or operate a petroleum liquids transportation network;
g engage in the bulk sale of petroleum liquids; or
h undertake construction or operation of any facility for the production of lubricants or petrochemicals based on petroleum products.

2 Except in accordance with an appropriate licence or permit issued by the Authority, a person shall not undertake the following activities with respect to downstream petroleum products operations -
a construct or operate any facility for the distribution or sale of petroleum products to retail customers;
b establish, construct or operate a depot for the storage of petroleum products; or
c undertake distribution, marketing or retail trading of petroleum products.

3 The Authority may, by regulation, prescribe additional activities to be undertaken only on the basis of a licence or permit and shall have power to issue licences or permits for the activities in accordance with this Act.

4 Where a person engages in any of the activities set out in subsection (1), (2) or (3) without a licence or permit, the Authority shall -
a seal the premises where the activity is undertaken;
b dismantle and seize the facilities by which the activities were undertaken;
c confiscate equipment or materials employed by the person in such activity; or
d impose penalties as prescribed by regulations under this Act.

5 Notwithstanding any provision of this Act, a person who engages in any of the activities set out in subsection (1), (2) or (3) without a licence or permit, commits an offence and is liable on conviction to imprisonment for a term of -
a one year or to a fine prescribed by regulation, in the case of an activity requiring a licence; or
b one year or to a fine prescribed by regulation, in the case of an activity requiring a licence; or

6 A holder of a subsisting lease, licence or permit who is engaged in activities in midstream or downstream petroleum liquids operations prior to the effective date shall, within 18 months from the effective date, apply to the Authority for, and the Authority may issue the appropriate licence or permit, where applicable.

7 The provisions of subsections (4) and (5) shall not apply to any person under subsection (6) until the Authority has considered the application and given a decision.

8 Where any person, in applying for a licence or permit, knowingly makes a false or misleading statement, the Authority may -
a suspend or revoke the licence or permit; or
b impose a fine on the licensee or permit holder on the basis of the false or misleading information.

9 Crude handling agreements and any other agreements among parties entered into prior to the effective date related to midstream or downstream operations shall be submitted for review to the Authority and the Commission and where so ordered by the Authority or Commission, as the case may be, amendments shall be made in such agreements to comply with the Act.