Environmental Laws governing Petroleum and Other Related
Operations in Nigeria Offshore from Mobilisation to Decommissioning
of such Operations (including Seismic and Fishing Activities)
in the areas of
Waste and Hazardous Materials
Toxic Chemicals including Carriage and Disposal.
Introduction
The nature of operations in the petroleum industry is such that one of the direct
consequences of Petroleum activities is usually the generation of waste and hazardous
materials. These products together with toxic chemicals are not only used in the
Petroleum Industry but are also transported from point to point. The interplay of these
products with our environment must be regulated in order to prevent avoidable calamities
on the human population. Nigerian laws have evolved through regulation and guidelines
to protect and/or restore the environment to as near perfect as possible if damage does
occur from the Petroleum Industry or related activities.
The philosophy behind the Nigerian Laws in the Petroleum Industry is that the
licencee/Lessee or Operator is expected to be responsible for hazardous materials,wastes
and toxic chemicals from cradle to grave.
In recognition of the above the Department of Petroleum Resources1 has divided the
Petroleum Industry into six stages and laid down rules to be complied with in dealing
with these materials.
The stages are as hereunder:
 Exploration
 Production
 Terminal Operations
 Hydrocarbon Processing
 Oil Transportation
 Marketing Operations
Each of these six stages produces and generates wastes, hazardous materials and toxic
chemicals, which are normally transported, treated and disposed of. We will now
identify the relevant Nigerian statutes, guidelines and treaties governing this area.
1
Environmental Guidelines and Standards for Petroleum Industry in Nigeria (EGASPIN)
1
Nigerian Statutes:
The Minister of Petroleum Resources is empowered to make regulations for the
prevention of pollution of water courses and the atmosphere.2All licensees or
2
Petroleum Decree s.9 (1)(b)(iii)
2
leesees are expected to adopt all practicable precautions including the provision of
up to date equipment approved by the DPR to prevent pollution in Nigerian
waters.3The Licensees or Lessees are expected to carry out their operations in a
proper and workmanlike manner in accordance regulations and practices accepted
as by the DPR as good oil field practices.4
Some of the statutes and guidelines are as follows:
 Minerals Ordinance of 19145
 Oil in Navigable Waters Act6
 Petroleum Act7
 Petroleum Regulations
 Petroleum (Drilling and Production) Regulations
 Petroleum Refining Regulations




Oil Pipelines Act8
Associated Gas Re-injection Act9
Federal Environmental Protection Agency Act10
Guide lines and Standards for Environmental Pollution Control in Nigeria
 National Environmental Protection (Effluent Limitation) Regulations,
1991 –s1.8 of 1991








National Environmental Protection (Pollution Abatement in Industries and
Facilities Generating Wastes) Regulations, 1991 –S.1.15 of 1991
Environmental Impact Assessment Decree11
Criminal Code12
Harmful Waste (Special Criminal Provisions, Etc) Decree 198813
Sea Fisheries Decree14
Territorial Waters Act15
Explosives Act16
Oil Terminal Dues Act17
3
para 25 of the Petroleum (Drilling and Production) Regulations 1969
para 36 “ “
“
5
As amended in 1925, 1950 and 1958. See Cap 12 L.F.N 1958
6
Cap 337 L.F.N.1990
7
Cap 350 L.F.N 1990
8
Cap 338 L.F.N 1990
9
Cap 26 L.F.N 1990
10
Cap 131 L.F.N 1990 as amended by the Federal Environmental Protection Agency Decree No.59 of 1992
11
Decree No 86 of 1992
12
Cap 77L.F.N 1990
13
Cap 165 L.F.N 1990
14
Decree No.71 of 1992
15
Cap 428 LFN 1990
16
Explosive Act 1964 and Regulations 1967
17
Oil Terminal Dues Decree 1969
4
3
The Department of Petroleum Resources in 1981 issued interim Guidelines concerning
the monitoring, handling, treatment and disposal of effluents, oil spills and chemicals,
drilling muds and drill cuttings by lessees /oil operators. Tentative allowable limits of
waste discharges into fresh water, coastal water, and offshore areas of operations were
also established.
The Federal Environmental Protection Agency also issued guidelines as above in
1991.However, these guidelines are mainly for hazardous materials and wastes generated
by local industries within the country. However, when wastes are being brought from
offshore to land for disposal then the FEPA Guidelines should be applicable to the
treatment, storage and disposal (t s d) of hazardous materials within the shores of the
country. Additionally the FEPA Act shows that the jurisdiction of FEPA extends to the
territorial waters18 of Nigeria so the distinguishing where the waste is generated, on or
offshore may be a distinction without a difference, in other words an exercise in futility.
DEFINITIONS
For a thorough understanding of the subject area it is essential to have a look at
the definitions of key words in the Nigerian Petroleum Industry. Offshore Water
is defined as waters situated between 5km – 50 km from the shoreline19.
18
19
s.20(1) of FEPA Decree
Environmental Guidelines and Standards for the Petroleum Industry in Nigeria(EGASPIN) -Definitions
4
Hazardous substances20 include but are not limited to any element, compound,
mixture, solution which because of its quantity /concentration, or physical
/chemical or infectious characteristics, may:
I. cause or significantly contribute to an increase in mortality , or
incapacitating, reversible illness, or;
II. pose substantial hazards to human health or the environment when
improperly treated , stored , transported , or disposed of, or otherwise
managed;
III. exhibit the following characteristics/ criteria :
a. Ignitability – a liquid and/or liquid waste other than an aqueous
solution containing less than 24% alcohol, that has a flash point
less than 60oC;a waste, not a liquid, which is capable under
standard temperature and pressure of causing fire through friction,
absorption of moisture, or spontaneous charge and, when ignited,
burns so vigorously and persistently as to create a hazard; an
oxidiser, an ignitable compressed gas
b. Corrosivity – is aqueous and has a pH of 2.0 or less or 12.0 or
more, a liquid that corrodes steel at a rate greater than 5.0 mm per
year.
c. Reactivity – forms toxic gases, vapour, fumes, or explosive
mixture with water and when exposed to pH conditions between
2.0 and 12.5;normally unstable and capable of explosion if
subjected to a strong igniting /heat source; an explosive capable of
detonation or explosion at standard temperature and pressure.
d. Toxic – capable through chemical action, of killing , injuring or
impairing an organism.
The 1991 FEPA Guidelines21 defines hazardous waste as “by products of society
that can pose a substantial hazard to human health or the environment when
improperly managed, possesses at least of four characteristics (ignitability ,
corrositivity, reactivity,or toxity), or appears on FEPA lists.
The FEPA Decree prohibits22 the ‘discharge in such harmful quantities of any
hazardous substance into the air , or upon land and the waters of Nigeria or at the
joining shorelines (sic) except where such discharge is permitted or authorised
“
‘
FEPA GUIDELINES 1991
22
s.20(1) FEPA Decree 1988 No.58
20
21
5
under any law in Nigeria. However, an owner or operator is exempted from strict
liability where the oil spillage was as a result of “natural disaster” or an act of
war or by sabotage.
FEPA is charged with the leadership role for the combined oil spill response
team, pursuant to regulation 19 of the Pollution Abatement Regulation. Every
spill must be reported under FEPA Regulations. All discharges in the normal
operation of an oil company would be analysed and must be reported to the nearest
FEPA office every month through the Discharge Monitoring Report23
The Harmful Waste (Special Criminal Provisions etc) Act renders it an offence to
“carry, deposit, dump or cause to be carried deposited or dumped or be in
possession of any harmful waste on any land or territorial waters or contiguous
zones or exclusive economic zone of Nigeria or its water ways, or to transport or
such without lawful authority”24
Harmful waste25 is defined to include “injurious, poisonous, toxic or noxious
substance, if the waste is in such quantity as to subject any person to the risk
of death, fatal injury or incurable impairment of physical or mental health.”
There are currently about 100426 chemicals on the Exclusive list of Hazardous /
Dangerous Chemicals contained in Part III of the 1991 Guidelines, as chemicals
and substances (including waste) and discarded chemicals which the Agency
has found , based on scientific evidence to be hazardous to public health and
environment.
From the above we can safely state that toxic chemicals are hazardous materials
In the context of Nigerian Petroleum jurisprudence.
Categories of Oil Operations
The EGASIN depicts guidelines and standards in order to effectively
monitor the discharges of these substances into the environment. It is sine quan
non that the Petroleum Industry can not function without the use of these
substances. The law steps in to regulate the way they are discharged into
the environment.
23
Regulation 3 Pollution Abatement Control
s.1 of Harmful Waste (Special Criminal Provisions Etc) Act
25
s.15 “ “ “
26
Exclusive List of Hazardous /Dangerous Chemicals contained in Part III of the Guidelines
24
6
Stage 1 - Exploration and Development Operations
Legal Authority – Petroleum Act 1969 with the Petroleum (Drilling and
Production) Regulation 1969, section 25 and 36.Also the Explosive Act 1964 and
Explosive Regulation 1967 governs the use of explosives during seismic activities.
Exploration and Development Operations generate wastes that include:
 Drill cuttings
- documentation on spent cuttings required
 Drilling fluids (mud) – analysed by DPR to determine level of toxicity
 Deck drainage
 Well treatment fluids,
 Sanitary and domestic wastes
 Accidental oil spills.
Treatment and Control of Waste
Wastes from drilling and workover activities from offshore, near shore and inland
areas, spent water –based mud/fluids, well treatment wastes, oil and water based
drill cuttings, brine, deck drainages or residues – shall be treated to the satisfaction
of the Director of the Department .
Seismic Activities – For offshore operations non –explosives shall always be used
where possible instead of explosives. Provisions are however made in Table II –327
and Table II – 4 for safe distances to protect buried pipelines and exposed sub
marine pipelines subjected to vibration from seismic activities.
Drilling Fluids- Use of diesel Oil for lubricity and spotting is prohibited. Treatment
of oil based mud is different from water based.
Drill Cuttings –
 On-site disposal with an oil content that doesn’t cause sheen on the water.
 Washing so that it would not cause sheen on the water.
 Transportation to Land from offshore for disposal
 Injection into properly prepared or approved formation.
Deck Drainage – treated separately for oil removal or by gravity separation or
is handled by the produced water treatment system before discharge.
Sanitary Wastes – biological waste water treatment with residual chlorine of 0 .8
to 2.0 mg/l. if manned continuously by ten (10) or more persons. If less than 10
persons it may be macerated and dumped overboard with no floating solids.
Oil spillage –provided under the contingency plan for oil spill control and
Prevention.28The Minister of Petroleum Resources29 is empowered to make
regulations for the prevention of pollution of water courses and the atmosphere.
Other Regulations are 25 and 36 of the Petroleum (Drilling and Production)
27
28
29
1.1.16 -Egaspin
Part VIII – B -Egaspin
Petroleum Act 1969 and s.8(i)b(iii)of the Regulations
7
Regulations 1969,Regulation 43 (3) of the Petroleum Refining Regulations
1974 and Regulations 17(3) of the Oil Pipelines Ordinance 145 as amended by
the Oil Pipeline’s Act 1965.
There are also International Conventions that were ratified by Nigeria. These
include the International Convention for the Prevention of Pollution of the Sea
by Oil 1954 as amended in 1962 which was implemented by the Oil in Navigable
Waters Act 1968, and the Convention on the Continental Shelf and High Seas(Geneva
1958).
Control of Points of Discharge30
Discharges are permitted in offshore (discharge zones) areas 12 nautical miles away
from the shoreline and of the depth not less than 200feet provided the limitations as
specified in Article 3.5.6 1 are satisfied. Article 3.5.6.1 is very explicit on the discharge
limitations.
Visual Sheen Test and Discharge Limitations
Cuttings contaminated with water based mud may be discharged offshore/deep waters
without treatment, provided the discharge does not contain free oil as determined by the
visual sheen test on the receiving water. The visual sheen test must have commenced 15
minutes before observation and can only be conducted during clear weather conditions.
With regard to cuttings contaminated with oil the regulations lays down strict parameters
for the percentage of residual oil content before they may discharged in offshore
discharge zones.
Deep offshore
Drill cuttings from use of oil and water based mud which satisfy the limitation as in
article 3.5.6.1 (i) may be dumped or discharged deep offshore provided all the conditions
stipulated are met.31 Toxicity tests must be conducted on all muds.32
Solid Component
These are sludge, cake, and unsolidified cuttings from water-based mud. They must be
disposed of on land after treatment by methods that shall not endanger human life and
30
31
32
“ Article 3.4
Article 3.5.6.2
3.45
8
living organisms and cause significant pollution to ground and surface waters. Some of
the approved methods are land farming33, backfilling34 and landfilling35.
Disposal of Cuttings from Oil based mud
The preferred option for the disposal of cuttings and sludge from oil-based mud is by
injection and incineration. However, land farming, landfilling and backfilling when
adopted must meet the requirements enumerated above.36 However, other treatment
technologies approved by the Department of Petroleum Resources may also be used. The
DPR enjoins operators to use best practicable technology currently available as
approved for incineration. The ash produced may be landfarmed or backfillied in
accordance with regulations.
Oil Spillage37
The DPR has issued guidelines for preparing first level Contingency Planning for the
Petroleum Industry. The object of Environmental Sensitivity Index (ESI) Mapping is
the identification and mapping of the areas sensitive to oil pollution, relative to
operational areas. Offshore operational areas shall be the outer coastline defined as
having a greater than 10% chance of oiling in the event of an oil spill from the specific
offshore OML block, based on the results of oil spill simulations. The operational areas
to be mapped for offshore operations shall also include the coast belt region and all the
river mouths up to 10 km landward of the outer coastline.
For offshore waters, clean up methods shall be by containment and mechanical
recovery. However, dispersing /sinking /gelling agents may be employed by the
operator only after approval has been sought and obtained from the Director of
Petroleum Resources.
Disposal Plan for Oil and Debris
Reuse is the first option. Otherwise the Director, Petroleum Resources, must first approve
any of the following options:
 Resource recovery system where feasible
 Land Farming
 Controlled Burning
 Incineration
Article 3.5.7.1
“ “ Article 3.5.7.3
35
“ Artcle 3.5.7.2
36
Article 3.5.7.3.2
37
Egaspin Part VIII.B
33
“
34
9

Sanitary Land Filling
Use of Oil Spill Chemicals
All Oil Spill Chemicals intended for use within Nigeria or its territorial waters shall be
certified by the Director, Petroleum Resources. The chemicals shall be subject to
effectiveness, toxicity and biodegradability tests under Nigerian conditions.
An operator responsible for a spill shall be required to conduct an Environmental
Evaluation (Post Impact) Study
CHEMICAL/HAZADOUS WASTE38
Hazardous Waste Management
The Petroleum Regulations state that non-hazardous and /or hazardous wastes from
oil and gas exploration, exploitation, refining and other associated activities shall
be handled in accordance with up –to- date instructions and with practices in
accordance with good –oil-field and international standards.
38
Part VIII.C
10
I. Indentification
Every Operator/ Licencee / Lessee shall supply to the Director of Petroleum Resources
all information necessary to identify hazardous materials and wastes. Generally the
information are as follows but may be expanded:
 Material Safety Data Sheet39
 Waste Material Data Sheet40
 Chemical Test/Analyses on the Characteristics as defined by DPR for hazardous
substances /wastes41
 Risk Assessment (hazard identification, assessment and risk
estimation/evaluation) .
Generation42
The generation of hazardous waste shall be notified to the DPR in writing within
one month of its generation. The wastes must be properly stored, treated on –site
or delivered to and received at permitted or licenced premises for treatment and
disposal.
Transportation
All transporters of waste must register with the DPR. The transporting medium must
conform with the specifications described in the labelling by the manufacturer. Where
there is discharge of hazardous material or waste during shipment , the generator
and transporter must take immediate action to:
 Protect human health and the environment
 Inform the DPR within 24 hours
 Activate the Hazardous Spill Control Plan
The generator and transporter are responsible for cleaning up any discharge.
Storage , Treatment and Disposal
Hazardous Materials are stored, treated and disposed of on site in special facilities
approved by the DPR before hand through the issuance of a permit.43The medium of
storage must satisfy DPR specifications44
39
40
41
42
43
Egaspin –Appendix VIII –C1
“
VIII – C2
“
Article 2.1.2
“
“
Article 2.2.2
Article 2.4.1
11
Treatment and Disposal of Waste45
An application must be made to the DPR with all the relevant information. The
treatment /disposal method shall be the best practicable technology currently
available and approved by the DPR. Some of the methods are:







Resource Recovery
Controlled Incineration
Detoxification (Neutralisation)
Encapsulation
Solidification
Secured Landfill
Deep Well Injection
Closure
Operators of on –site treatment and disposal plants must have closure and post
closure plans approved by the DPR. Hazardous waste generators are responsible for the
management of their waste from cradle to grave. If the waste is to be treated
and disposed off-site then National standards will apply(mainly the FEPA
Guidelines).
Monitoring
The licencee/operator must provide a detection monitoring system for the purpose
of discovering ground water contamination.
Waste Release Inventory
All operators must submit this inventory at the end of the year annually to the DPR
for releases of on-site(point source) effluent discharges.
TOXICITY TESTS FOR CHEMICALS46
Operators shall be required to undertake toxicity tests of all low toxic base oil, oil based
mud system, drilling fluid, chemical dispersants or any other chemical on standard
aquatic organisms under the Nigerian Environmental conditions. The Operators are
expected to use laboratory facilities approved by the DPR to conduct toxicity tests. The
procedure for the determination of the acute toxicity of chemicals under Nigerian
environmental conditions are as follows :
Article 2.4.2
Article 2.4.3
46
Egaspin Part VIII E 2.2.5
44
“
45
12
 Objective: The objective is to determine the 96 hour median lethal
concentration(96 hour LC50 and median lethal times(LT50) of Chemicals to
standard aquatic organisms. The toxicity tests will cover acute toxicity
determinations using semi- static agitation test procedure. The test results should
be submitted to the Director, Petroleum Resources for evaluation and subsequent
selection and approval of the chemicals for use in Nigeria in accordance with the
application sought.
 Test Material: A sufficient quantity of test materials will be supplied by the
chemical supplier and /or Operator (sponsor). Adequate physio –chemical
specification , as well as priority hazardous constituents (e.g cadmium, mercury
and percent aromatic contents) shall be provided by the chemical supplier and/or
operator(sponsor).Special reference to hazardous properties, storage conditions
and material safety date sheet (MSDS) shall also be provided by the
sponsor.Where physico- chemical and priority hazardous constituents are not
provided by the supplier they shall become part of the test to be conducted by the
approved Nigerian laboratories.
 Test Species
Organism selection : The species recommended for the toxicity tests shall
be as follows:
Freshwater – Desmocaris
Brackish Water – Palaemonetes africanus
 Collection and Transportation: The species shall be aerated immediately
they are collected. Plastic bash bags should be used in collection and
transportation.
 Acclimitization: The stock population is to be held in laboratory conditions
for a minimum of ten (10) days and fed on 3% of bulk weight daily on a diet
of which should be stated in the report results.
Furthermore rules are laid down for the following other criteria:
Test Apparatus, Identification of Test System, Dilution Water, Lightening,
Test Temperature, Type of Tests and Test Concentrations, Preparation of
Test Solution, Media Parameters Monitoring, Procedure, Moult deaths, Data
Analysis, and Records.
STAGE 2 - PRODUCTION OPERATIONS
Legal Authority - s.25 and 36 of the Petroleum (Drilling and Production)
Regulations 1969.In a nutshell, a licensee or lessee is obligated to adopt all practicable
precautions including the provision of up- to-date equipment approved by the Director of
Petroleum Resources and the execution of all his operations in a proper workmanlike
manner in accordance with good oil-field practices.
13
Various chemicals are used at this stage and some are hazardous and may end up being
discharged as wastes. Wastes and hazardous material from production operations shall be
treated to the satisfaction of the Director of Petroleum Resources before any disposal.
Encapsulation in abandoned well bores and injection into depleted reservoirs on a caseby-case basis(as appropriate) shall be the preferred option. Effluents are prohibited from
being discharged into offshore waters except permitted by the Director.
Treatment and Disposal of Hazardous Materials, Waste and Toxic Chemicals from
Production Operations
It must be treated to the satisfaction of the DPR before disposal. The levels of pollution
control are expected to be fully in line with the Best Practicable Control Technology
Currently Available (BPT). Which represents the best existing performances of wellknown technologies for the control of these specific pollutants.
Solid Wastes
Some of which are oily sludge, produced sand, domestic wastes, empty metals/plastic
containers are controlled by the use of techniques like incineration, sanitary landfilling,
land farming encapsulation, solidification, slurrification and injection, chemical
treatment, recycling inter alia.
Chemical /Hazardous Wastes/LSA or Norm
Encapsulation in abandoned well bores or injection into the depleted reservoirs on a case
-by - case basis ( as appropriate ) shall be the preferred options.
Treatment and Disposal of Wastes from Production Operations
Wastes from production operations shall be treated to the satisfaction of the Director of
Petroleum Resources before any disposal.
Produced Formation/Oily waters - may be discharged into offshore discharge zones
and deep water areas provided the following conditions are satisfied:
 The oil is separated from the produced /oily water.
 As a minimum the concentration of the dispersed oil in water to be discharged,
shall not exceed 40mg/l(monthly average , otherwise the produced formation /oily
water shall be re-injected.
 An Oily water treatment system, designed to maintain the treatment efficiency
during load variations and to operate with minimum chemical addition, shall be
installed.
14
Disposal of Produced Sand and Oily Sludges - The methods of disposal must not
endanger human life, living organism or cause pollution to ground and surface waters.
Approved methods are recycling (resource recovery), incineration, solidification, land
farming and landfilling. Any other method(s) acceptable to the Director of Petroleum
Resources can be used after an approval has been sought for and given.
Disposal of Produced well Sands, which include well solids containing
LSA/NORM.47, domestic and sanitary wastes48, disposal of contaminated
metal/plastic chemical containers49
Effluent Limitation
The quality of the produced formation/oily waters from offshore production shall satisfy
an oil and grease content of less than 40mg/l monthly average before disposal /discharge
into offshore water bodies.
Monitoring of Wastes
Explicitly provided for in Table III - 250 and the recipient water bodies of all facilities that
discharge produced formation/oily water offshore and oily waste (Inland/near shore) shall
be monitored (sampling and analysis) once every month for the parameters 51.Low
Specific Activity (LSA) or Naturally Occurring Radio – active Material (NORM)
shall be monitored in production tubing, vessels, pumps, valves, Sulphate and Carbonate
Scales, Sands and Sludges.
See Egaspin for the disposal of wastes and monitoring requirements52
3.TERMINAL OPERATIONS
Legal Authority:
Petroleum Decree No.51 1969 (b)
Petroleum (Drilling and Production) Regulations 1969
Oil in Navigable Waters Regulations 1968
Oil Pipelines Ordinance (cap 145 of 1956) as amended by the Oil Pipelines Act 1965
47
48
49
50
51
52
article 3.6.4.2.
3.6.5
3.6.6
Article 4.1.2
Article 4.2.1
Egaspin Article 4.2.1
15
Description of Operations
Storage / Pumping:
The main loading pumps are driven by diesel /gas combustion engines (booster pumps)
with connecting pipeline networks on land, swamp and offshore. The offshore pipeline
network usually terminates at a platform (BOP).
Dehydration:
Produced formation water is removed from the crude oil.
Accommodation:
Chalets and recreational facilities produce domestic waste and management problems.
Sources and Characteristics of Wastes
 Oil spills e.g. leakages from pipe/hose burst, malfunctioning/faulty equipment,
corrosion, and maintenance operations
 Discharges from treatment facilities of oily brine formation water
 Storm water runoff
 Discharges from transporting vessels of ballast, bilge and cleaning waters
 Storm Water runoff discharge of refined products from service vessels
 Sanitary Wastes
Solid Waste
These include oily sludges from cleaned – up tanks and heater treaters, spent oil, garbage,
grits, dirt, etc
Treatment and Disposal of Wastes from Terminal Operations
Must be treated to the satisfaction of the Director, DPR before disposal similar conditions
apply as for Production Operations. Monitoring of recipient water bodies for all facilities
that discharge produced formation waters (offshore) shall be monitored. Radio-active
substances shall be specified.
Produced Formation Water:
Where appropriate it shall be re injected into disposal wells (sub –surface stratum or
strata) approved for the purpose (APPENDIX VIII –C3). Other disposal methods shall
be in accordance with the DPR recommended procedures. An Environmental Permit shall
be issued, to dispose of such waters.
16
Disposal of Oily Sludges, Produced Sand and Solid Wastes:
The methods must not endanger human life, living organisms. Some of the approved
methods are recycling (resource recovery), incineration, land farming and land fill. Any
other method must obtain a prior approval from DPR.
Disposal of Domestic and Sanitary Wastes
The provisions of Part II, Section E.3.5.6.1 (h) shall be conformed with.
Effluent Limitation
Permitted discharges into offshore waters of produced formation water shall be as
described for Production Operations in Part III E, 3.8.3.In other words the quality of
produced formation/ oily waters from offshore production operations should satisfy an
oil and grease content of less than 40mg/l monthly average before disposal/discharge into
offshore water bodies.
If the waters (oily/produced formation waters) are to be re-injected, the conditions in
Appendix VIII –C3 would apply.53Operators are expected to obtain approval of the
Director, Petroleum Resources for the storage, treatment and sub –surface disposal of
oil/field waste generated from oil and gas development operations. Prior to initiating an
application for waste re-injection programmes, operators must consult with the Director
,DPR to discuss the proposed project and to review requirements and information to be
developed for the technical report of the proposed injection project which shall also be
submitted to the Director, Petroleum Resources as an attachment to the Application
(Appendix IX –6), by the lessee.
Monitoring
The same conditions apply for produced formation water, oily waste waters, oily
sludges/produced sand, sanitary sewages as provided for Production Operations in Part
III, Section E.4.1 and Table III –2.
4.HYDROCARBON PROCESS OPERATIONS –
53
Appendix VIII –C3 Egaspin Drilling and Production Waste Injection Operations
17
Because most of the processing takes place onshore, this stage is not really
applicable to offshore operations.
5.OIL AND GAS TRANSPORTATION
LEGAL AUTHORITY :
Petroleum Regulation 1967
Oil Pipelines Ordinance (CAP 145 0f 1956) as amended by the Oil Pipelines Act 1965
Oil in Navigable Waters Regulations 1968
18
Sources of Wastes
Pipelines,Barges,Ships,Tankers and FPSO
Treatment and Control of Waste
Pipelines :Oil pollution form pipelines can be controlled by various means before and
during operations by the following








Hazard assessments must be carried out prior o the laying of pipes
Materials are carefully inspected for manufacturing defects
All welded joints receive careful inspection and testing either by visual, x –ray or
ultra sonic methods,
Hydrostatic test at pressure above normal working pressures are used to detect
wall cracks, thin holes, or other defects that might cause leakages,
Protection against external and internal corrosion is provided by coating with such
materials as asphaltic mixtures, coal-tar enamel, epoxy compounds or cathodic
protection and addition of corrosion inhibitors to the materials passing through the
lines respectively54 etc.
Inspections (visual/ electronic) of long length of the pipeline with helicopters,
vehicles, foot and by divers are meant to detect spillages and encroachment on the
pipelines that may endanger them
Sensors and shut- off devices are installed for monitoring and controlling of
pipeline operations;
Erection of warning signs or boards where pipelines cross navigable water ways
Oily water and spills around the pump station are routed into the oily water separator for
treatment. The recovered oil is either returned to the system or incinerated as oily waste,
while the water is drained and dumped as effluent water.
Barges, Ships and Tankers
Oil contaminated water can originate from ballast water, tank cleaning, water bilge and
produced formation water. Pollution from these sources are controlled through:
 For the offshore line system, great care must be exercised during loading when
ships valves are manipulated, to avoid pressure surges. Pressure recorders are to
be fitted at the spool piece between ship manifold and tail end of the hose string to
monitor pressure changes generated on board the vessel.
 Whilst berthed at the SBM, a secondary watch must be kept on the fore castle
head by member(s) of the crew throughout the hours of darkness to raise the
alarm and advice the berthing master on the approach of local small crafts. The
54
Egaspin Part VI.D.1.1
19
berthing master should also be advised in the event that the vessel rides up to the
SBM.55
Inspections
All pipelines and flowlines for crude and petroleum products including gas shall be
patrolled and inspected once every month or otherwise as approved by the Director of
Petroleum Resources.
Control of Existing Effluent Point Sources at Pump stations
All point sources of existing effluent discharges must be registered with the Director,PR
and the appropriate permit issued.
Ocean Ballast Water
It is mandatory for Operators, Ship owners, Charters and Ship Agents to ensure that
samples of clean ballast and treated bilge water to be disposed of meet effluent
limitations for ocean ballast before discharge.
6.Marketing Operations
Legal Authority : Mineral Oil Act 1962, Mineral Safety Regulations 1997 , Petroleum
Regulations 1967 and Oil in Navigable Waters Regulation, 1968.
Control of Points of Discharge
55
““
20
It is prohibited to discharge wastes into offshore waters. However, exemption to dispose
of or discharge waste materials may be granted on the condition that scientific
investigation support beyond all reasonable doubts the fact that the quality and quantity
of discharge shall not cause hazards to human health, harm living organism (fauna and
flora) or impair the quality to use adjacent land and water.
FEPA Guidelines on Treatment, Storage and Disposal (TSD) of Hazardous Wastes
The Effluent Limitation Regulation requires every industry to install anti-pollution
equipment based on the Best Available Technology (BAT), the Best Practicable
Technology (BPT) or the Uniform Effluent Standards (UES) for the detoxification of
effluent and chemical discharges emanating fro the industry.
The National Environmental Protection (Management of Solid and Hazardous
Wastes) Regulation 1991 has set out criteria to be used to designate wastes as either
21
Dangerous i.e . hazardous waste , or DW ; or extremely hazardous waste EHW.
The Pollution Abatement in Industries and Facilities Generation Wastes Regulations,
1991 prohibits on – or – off site treatment, storage or disposal (TSD) of hazardous
wastes in Nigeria, except under a permit issued by FEPA. In order to obtain a permit
the waste generator or facility operator must prove to the satisfaction of the Agency that
he has the resources to meet the detailed requirements and standard specification for
waste treatment , storage and disposal .
Specific guidelines are laid down for the packaging of the waste for transportation. The
package has to be ascribed a Manifest Document Number and labelled as prescribed by
FEPA.
Schedule of Implementation, Permits Enforcement Powers and Sanctions
Permits56
Permits are issued by the DPR for all aspects of Oil related effluent discharges from point
sources(gaseous, liquid and solid) and oil related project development. No operator
therefore shall be permitted to discharge any effluent without permit.
Existing Sources:57
Environmental permits are issued for existing and new sources of effluent discharge.
Enforcement Powers and Sanctions
All avoidable spillages, when they occur, shall attract a royalty not less than N500 000
to be to be deducted at source and additional fine of N100,000 per day for as long as the
violation persists. The spiller (operator or owner of vessel ) is expected to pay adequate
compensation to those affected and restore the /remediate the polluted environment to an
acceptable level as shall be directed by the Director of Petroleum Resources.58
Effluent (Liquid)
When the effluent quality of discharges is exceeded by twenty (20) percent of the allowed
daily/ monthly average concentration per parameter, a fine of N5, 000.00(five thousand)
for every 50m3 of water discharged will be imposed. In addition, upon conviction, an
imprisonment for a term not exceeding 2 years shall apply for the first offender.59
56
Part IX Article 3.0
“
2.0
58
“
4.6.2
59
Article 4.6.2.2.
57
22
The most serious sanction is for persistent violators, which would be revocation of the
lease, licence and/or permit.
Fishing Rights
The Territorial Waters of Nigeria extend to 30 Nautical Miles off the coast of
Nigeria.60Hazardous methods of fishing are prohibited within the Nigerian territorial
waters either by use of any explosive substance, noxious or poisonous matter.61The
Minister is also empowered to make regulations generally for enhancing the interests of
Sea Fishing Industry including regulating, prohibiting or restricting the taking of fish in
any specific area within the territorial waters of Nigeria.62
Common Law Torts
Nuisance
It is indisputable that the principles of Common law form part of our laws. The area of
difficulty is where there is a Public Nuisance in tort. The Attorney General been the
person to sue Ex-Offcio or Ex Relatione does not usually take up Environmental matters
in Nigeria. Hence most matters are defeated in court on this technicality for lack of
standing63.It is usually a herculean task to prove that one has suffered a peculiar damage
over that suffered by members of the public. Fundamental pitfalls of private nuisance are
60
s.1(1) Territorial Waters (Amendment) Act 1971
s.10 Sea Fisheries Decree, 1992 No.71
62
s.14 “ “
63
Amos & Ors v Shell B.P (1977) 6.S.C .109 345
61
23
the twin requirements of causation and reasonable use of the defendant’s premises. The
requirement of reasonableness, seeks to strike a balance between the competing rights of
the plaintiff and the defendant in the decision on whether the defendant reasonably used
his property or not. In cases of oil pollution, the court considers reasonable use of
property by a defendant, against a backdrop of the purpose or social utility of the
defendant’s conduct. The suitability of the locality, the impracticality of preventing the
interference, the extent of the harm done to the plaintiff’s property, and the social value
of the use interfered with are also relevant considerations in the resolution of the issue of
reasonable use property. A plaintiff must therefore prove unreasonable use of land in
order to succeed against such a defendant for damages. The issue of reasonableness
however, does not apply to the public nuisance. In comparison in the United States the
proximity rule is used and simply requires the plaintiff to prove his closeness to the
source of pollution. There is no reference to the AG under the proximity rule.
However, another school of thought backed by judicial decisions is that the proper
remedy to seek in the circumstances would be compensation and not damages.64.This
position is supported by the DPR wherein it states ‘ settlement for damages and
compensation shall be determined by direct negotiation between the operators and the
landlord(s)’65. Damages here not in the legal sense but in the layman’s understanding of
damage done. Further the DPR instructs that where direct settlement between the
operator(s) and landlord(s) fails, other methods of settlement shall apply which includes
arbitration and adjuducation. The Compensation Tribunal is specifically empowered to
determine the quantum of compensation payable.
The point to note here is that there is no laid down mode of appointing the Arbitrators or
mode of beginning the arbitration proceedings. This is anomalous as in an agreement for
instance wherein there is an arbitration clause it usually lays down how the parties can
elect to go to arbitration. In addition Egaspin does not make it clear if arbitration is a
condition precedent or whether the parties have the right to go straight to court. An
example of the confusion that can arise is seen in the recent Supreme Court decision of
Owners of M.V.Lupex Vs N.O.C.S Ltd66 where it was decided that the court had the
discretion to stay proceedings because of the on going arbitration. This is the position in
the Nigerian Arbitration Act.67We strongly feel that Egaspin should follow this position.
The Nigerian Supreme Court has affirmed liability under RylandsV.Fletcher.68However,
it is limited to damage to property. Furthermore several exceptions to it have greatly
diminished the application of the rule. Negligence is the least attractive of torts because
of requirements of causation and foreseeability.
64
Macaulay Olaoye .v. Nigerian Agip Oil Company Limited 2.R.S.L.R.96 ;PHC/166/1992
Egaspin : Contigency Planning for the Prevention, control and combating of oil and hazardous substances
8.3
66
(2003) 43 Weekly Reports of Nigeria 123
67
s.5 Arbitration and Conciliation
68
Machine Umudiome & anor v. Shell B.P Petroleum Develoment 1975 9/11
65
24
Under the FEPA Act 69except where an owner or operator can prove that a discharge was
caused solely by a natural disaster or an act of war or by sabotage, such owner or operator
of any vessel or onshore or offshore facility from which the hazard is discharged in
violation of section 20 of this decree, shall in addition to the penalty specified in that
section be liable fora) cost of removal thereof including any costs which may be incurred by any
government body or agency in the restoration or replacement of natural
resources damaged or destroyed as a result of the discharge; and costs of
third parties in the form of reparation , restoration, restitution or
compensation as may be determined by the Agency from time to time. The
owner or operator of the vessel or onshore or offshore facility from which
there is a discharge in violation of section 20 of this decree shall to the
fullest extent possible act to mitigate the damage by-giving immediate notice of the discharge to the Agency and other
relevant agencies;
-beginning immediate clean-up operations following the best available
clean –up practice and removal methods as may be prescribed by regulations
made under section 22 and promptly complying with such other directions as
the Agency may from time to time , prescribe.
One of the biggest issue we have observed is that an operator is not absolved of
responsibility from meeting up to the other provisions and statutes in the country by
merely complying with the EGASPIN . The problem that could arise is where the statutes
over lap .
Treaties and International understandings
The London Guidelines for the Exchange of Information on Chemicals in
International Trade (Amended) 1989 was drawn up by UNEP to guide the
regulation of international trade in hazardous chemicals .The objective is to
assist governments in the process of increasing chemical safety within their
territorial environment and other environment beyond their territorial
jurisdiction. The Guidelines amongst other things provide a mechanism for
the exchange of information on chemicals in international trade; co-operation
between exporting and importing countries in the light of their responsibility
69
FEPA Decree 1988 s.21 (1) and (2)
25
for the protection of human health and environment at the global level;
consultation with importing countries on the banned or severely restricted
chemicals; mechanisms for importing countries to formally record,
disseminate and up-date decisions regarding future importation of chemicals
which have been banned and severely restricted; technical and financial
assistance to enhance decision- making and training in the safe use of
chemicals ; and establishment of procedures for the effective use of
information on chemicals in the developing countries. In order to implement
these objectives and principles, the London Guidelines set up three distinct
structural processes:
 Notification of Control Action
 Information Regarding Exports ;and
 Prior-informed –Consent (PIC) Procedure

Nigeria adheres to the principles of these guidelines.
1991 Bamako Convention on the Ban of the import into Africa and Control of
Transboundary Movement of Hazardous Wastes within Africa- this agreement has the
potential to encourage increased traffic in hazardous waste by African countries .
Basel Convention on the Control of Transboundary Movements of Hazardous
Wastes and their Disposal
This Convention prohibits transboundary movement of hazardous wastes between State
Parties and Non Parties. State parties that have banned the import of hazardous waste in
their territories shall inform other parties to the Convention. If the State of import has not
prohibited the import of such wastes , Parties shall not permit the export of hazardous
wastes if such State of import does not consent in writing to the specific import. This
convention ensures that hazardous wastes are handled, disposed of, managed in an
environmentally sound manner by all the State parties involved in the generation,
movement or disposal of hazardous wastes. Disputes are settled by negotiation or any
other peaceful means of the parties’ choice. If the dispute cannot be settled through this
means then if they agree between themselves it would be taken to the International Court
of Justice. If the parties can not decide between themselves to take the matter to the
International Court of Justice or Arbitration then they remain under the obligation to
settle the matter by peaceful means. Nigeria has ratified this convention.
Other Treaties
Nigeria is a party to many Environmental Treaties but is constrained by the fact that
most of them have not been ratified hence they can not be judicially enforced.
List of Ratified Treaties
26
Comments
Up stream operators are usually willing to implement and /or co-operate with the DPR in
its regulatory efforts in the Petroleum Industry. However, the main constraints are :
i.
ii.
iii.
Cost /budgetary
Technology Transfer
Improper perception of the content and implementation of the Guidelines and
Standards
27
Cost and Budgetary Constraints
Some of the provisions of the Guidelines and Standards are too stringent and cannot be
subjected to cost/benefit analysis, where the ratio should be seen as skewing towards
benefit.For the operators this is bad business. Again the joint venture arrangement with
the Federal Government of Nigeria, where budgets for relevant environmental
management programmes are either slashed or not approved. Even when they are
approved, the cash call takes its toll.
Technology Transfer
The Operators must be made to implement the use of the Best Practicable Technology
Currently Available. Usually vendors are invited without first studying the problem/
situation which would enable them find out the state – of –art technology and most cost –
effective method of control.
The issue of Notification or Registration of Chemicals/hazardous substances currently in
use in the industry is often not strictly complied with. Neither is the discharge monitoring
requirements for produced formation water satisfactory. Likewise the biological effects
of monitoring of appropriate recipient waters needs to be properly followed.
There is a big problem regarding preventive maintenance of pipeline systems .Very often
these systems that have exceeded their design useful life are not replaced on time. This
usually causes leakages and unlawful discharges.
Recommendations
1. The numerous defences available to a defendant an in oil spill case should
be greatly reduced and liability for discharge of oil into waters should be
made strict.
2. A Liability Trust Fund should be established by the Government in
concert with Oil Companies. Each Oil company should be made to
contribute a certain percentage of its income to the fund. The fund should
be used in cleaning – up the impacted environment where the responsible
party is unable to pay compensation to victims of oil pollution.
28
3. A timely and co-ordinated oil spill response mechanism is needed which
would produce more rapid clean –up action.
4. Attempts should be made to develop a realistic compensation package for
pollution victims.
TABLE OF CONTENTS
Topic
Page
Introduction
Nigeria Statutes
Definitions
Categories of Oil Operations
-Stage 1 –Exploration and Development
Oil Spillage
Chemical and Hazardous Waste
Stage 2 -Production Operations
Stage 3 - Terminal Operations
Stage 4 - Hydro Carbon Processing
Stage 5 - Oil and Gas Transportation
1
3
5
8
11
13
16
19
21
22
29
Stage 6 - Marketing Operations
FEPA Guidelines on Treatment, Storage and
Disposal (TSD) of Hazardous Wastes
Schedule of Implementation,
Permits Enforcement Powers and Sanctions
Fishing Rights
Common Law :Torts
Treaties and International Understandings
Comments
24
25
26
27
29
31
33
30