Nigeria Oil and Gas industry services business in 2023
All companies conducting oil and gas activities in Nigeria, including providing goods and services to the industry are required to register with i) the Petroleum Regulatory Agency of Nigeria to secure a permit from the Department of Petroleum Resources (DPR) and ii) the Nigerian Content Development Monitoring Board (NCDMB).
What is a DPR certificate?
There are 3 categories of DPR Permit for oil and gas industry services in Nigeria:
- General Permit– Minor supplies, works and maintenance services that do not require specialized or certified competences.
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Detailed list of services included in this category
Type Services Minor supplies ✔ Civil Maintenance Materials ✔ Mechanical Maintenance Materials
✔ Electrical Maintenance Materials
✔ Plumbing Materials
✔ Computer Accessories/Consumables
✔ Welding Materials
✔ Catering Services
Minor works ✔ Welding ✔ Plumbing
✔ Painting
✔ Photographic
Minor maintenance ✔ Civil ✔ Mechanical
✔ Electrical
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- Major– services that require applicants to have relevant, verifiable technical skills for conducting oil and gas activities in Nigeria.
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Detailed list of services included in this category
Type Services Rehabilitation/Upgrade/Fabrication Works ✔ Civil; electrical; mechanical Equipment/Material Supply ✔ General supplies; heating, cooling & energy products; safety, lab & chemical supplies; mechanical parts Consultancy ✔ Media and publicity; training/manpower development; community relations; Nigerian manpower supply; security services; medical consultancy; information technology; legal services; architectural services; engineering services; quantity surveying and estate management; local freight/clearing and forwarding; horticulture/landscaping; furnishing and interior/exterior decoration; insurance brokerage; QA/QC services; events planning; geotechnical services, hydrogeology; outsourcing and expediting services. Water borehole ✔ Drilling; treatment; maintenance Protocol and logistics ✔ Car/vehicle hire and leasing; protocol services; travel agencies; vehicle documentation Laboratory ✔ Environmental quality monitoring; bio-monitoring/bio-degradability studies; petroleum quality monitoring; medical investigation; sample storage and preservation; geochemical; material safety investigation; chemical/mud testing; geological (bio-stratigraphy, sedimentology etc); geotechnical; Onshore Environmental/ Waste Management ✔ Environmental assessment/studies; office and domestic waste management (non-hazardous); office fumigation and sanitation; sewage evacuation & disposal; waste/used oil transportation. Installation and Maintenance ✔ Civil; mechanical; electrical; plumbing; fire and gas systems; meters & flow meters; security and information equipment Aviation Support ✔ Supply, installation and maintenance of air navigational/communication equipment; aviation logistics; aviation equipment certification and inspection Survey ✔ Land, topographic, geodetic survey services Integrity Test ✔ Pressure testing/leak detection of vessels/pipelines; surface and underground oil and gas storage tanks Calibration ✔ Calibration of petroleum storage tanks; oil and gas measurement/equipment; relief/pressure safety valves certification, etc.; laboratory equipment Haulage ✔ Road haulage (goods/materials); petroleum products haulage Medical/Pharmaceutical ✔ Pharmaceutical supplies; medical equipment supplies; dietitians; veterinary services Hospitality ✔ Lodging/boarding; onshore catering and other related services; laundry; lease of office accommodation/guest house Printing ✔ Publishing and corporate branding; educational material Automobile ✔ Sales and maintenance of cars/vehicles Data and measurement ✔ Ullage, fiscalization, cargo survey
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- Specialized– services that require applicants to have certified technical skills.
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Detailed list of services included in this category
Type Services Onshore pipeline laying and construction ✔ Banking/finance Facility maintenance ✔ International freight/clearing and forwarding Major construction ✔ Insurance Drilling/production ✔ Automobile Exploration ✔ Hyperbaric Technical consultancy ✔ Hospitality (offshore/onshore catering; offshore housekeeping & laundry) Special transportation ✔ Manufacturing Dredging ✔ Environmental restoration services Waste management services ✔ Marine support services Underwater inspection & services ✔ Local gas distribution services Hospital/medical ✔ Rope access Heavy duty equipment supply, installation & maintenance ✔ Specialised oil and gas training services Communication ✔ Heavy equipment hire & leasing only
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- Checklist of documentation required with each specific DPR permit category application:
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Steps to getting your Registration with DPR - Detailed checklist
Document General Major Specialized CAC issued Certificate of Incorporation ✔ ✔ ✔ Certified true copy of the M&AA ✔ ✔ ✔ FIRS tax & VAT registration certificates ✔ ✔ ✔ Employee compensation scheme (NSITF) ✔ ✔ ✔ Company profile, business & operational plan ✔ ✔ ✔ List of employees & resumes of key staff - ✔ ✔ List of approved expat quota positions & Nigerian understudies - ✔ ✔ Training programme for the development of Nigerian staff - ✔ ✔ List of equipment/facilities to carry out requisite functions - ✔ ✔ Regulatory permits or accreditation by relevant professional body - ✔ ✔ Technical service agreement or MoU with relevant Nigerian company - ✔ ✔
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- Healy Consultants Group will assist our Clients fulfil the DPR requirement for company registration by i) identifying the correct categories applicable to the relevant business activity ii) completing and submitting a quality OGISP application iii) assisting with collating an accurate list of supporting documents iv) liaising with DPR officials throughout the licensing process including DPR permit verification, and v) negotiating waiver of additional documents (if required);
- The estimated timeframe to secure DPR approvals for permits are i) up to four weeks for general purpose and ii) six to eight weeks for major and specialized categories;
- Complete guidelines, requirements and government fees for each of each OGISP can be found on the DPR webpage.
Participating in local tenders
- Companies that intend to participate in tendering activities issued by the Nigerian National Petroleum Corporation (NNPC) must also register on the Nigerian Petroleum Exchange (NipeX);
- While not legally required, in practice the Nigerian authorities prefer to conduct business with oil and gas industry subsidiary contractor and subcontractor companies that are majority-owned by Nigerian citizens;
- Consequently, to bid for government contracts, Healy Consultants Group recommends our multi-national Clients’ subsidiaries be majority-owned by Nigerian citizens and appoint at least one local resident director, who is also a Nigerian citizen;
- If required, Healy Consultants Group will supply our Client passive nominee shareholder & director services.
Healy Consultants Group fees
The average Healy Consultants Group fees to setup a Nigerian oil and gas service LLC and assist our Client in Nigeria apply for an oil and gas industry service permit amount to US$44,950. This includes i) Nigeria LLC company formation with the Corporate Affairs Commission (CAC) ii) a Lagos city centre address iii) multi-currency bank account opening with a top-tier bank iv) tax and VAT registration with the Federal Inland Revenue Service (FIRS) v) estimated government registration fees vi) professional fees covering cost of DPR permit (1 category) & NCDBM registration vii) provision of a nominee passive professional 51% Nigerian national shareholder and viii) assistance to secure a local residence and employment permit (CERPAC).
