(A) Licence for Construction or Operation of New Oil Storage

Introduction Establishing a new oil storage facility in Pakistan involves a comprehensive application process governed by the Oil and Gas Regulatory Authority (OGRA). Prospective applicants must adhere to stringent regulatory requirements to obtain the necessary licences for constructing and operating these facilities.

Application Process To apply for a licence for the construction or operation of a new oil storage facility, the applicant must submit a detailed application in the format prescribed in Schedule-I, Part G of the Pakistan Oil Rules, 2016. The application must include:

  1. Company Details: Name, address of the registered office, names, and nationalities of the directors.
  2. Registration Documents: Certificate of Registration from SECP, Memorandum and Articles of Association.
  3. Project Details: Estimated cost of the project, equity, and loan details, storage capacities, and precise location.
  4. Environmental and Safety Clearances: EPA clearance certificate, NOC from relevant district government, and Ministry of Defense.
  5. Engineering and Financial Feasibility: Conceptual engineering design, material specifications, economic and financial feasibility, and detailed construction/completion schedule.
  6. Product Information: Names of products to be stored, source of the product, and mode of transportation.
  7. Health, Safety, and Environment (HSE) Plans: Detailed HSE arrangements and emergency response systems.
  8. Undertakings and Affidavits: Various undertakings including the commitment to use the storage facility solely for petroleum products and affidavits from directors regarding compliance with legal and financial obligations.
  9. Licence Fee: A demand draft or pay order of Rs. 100,000 in favour of OGRA payable at Islamabad.

Review and Approval OGRA will review the application to ensure compliance with regulatory requirements. The authority may request additional information or documentation to clarify the details provided in the application. Upon satisfactory review, OGRA will grant the licence for the construction or operation of the new oil storage facility.

(B) Licence to Continue Operation of Existing Oil Storage or Under Construction

Introduction Existing oil storage facilities or those under construction must obtain a licence from OGRA to continue their operations. This ensures that all facilities meet the updated regulatory standards and safety requirements.

Application Process The application process for continuing the operation of existing oil storage or those under construction involves submitting the application as per Schedule-I, Part I of the Pakistan Oil Rules, 2016. The application must include:

  1. Company Information: Name and address of the company, directors’ details.
  2. Registration Documents: Certificate of Registration with SECP, Memorandum, and Articles of Association.
  3. Facility Details: Storage capacities, precise location, year of commencement of construction and operation, and details of any upgrades.
  4. Product Information: Names of products being stored, mode of transportation.
  5. Cost and Financial Details: Per unit cost of storing the product and details of HSE arrangements.
  6. Previous Permissions: Details of previous permissions and compliance with terms and conditions.
  7. Licence Fee: Payment of the requisite fee to OGRA.

Review and Approval OGRA will review the application and may request supplementary information to ensure compliance. Upon satisfactory evaluation, a licence will be granted for the continued operation of the storage facility.

(C) Licence to Undertake Storage of Oil in Non-Oil Storage

Introduction Undertaking the storage of oil in non-oil storage facilities requires obtaining a specific licence from OGRA. This ensures that even non-traditional storage facilities adhere to the stringent safety and regulatory standards set forth by the authority.

Application Process Applicants must submit their application in the format outlined in Schedule-I, Part L of the Pakistan Oil Rules, 2016. The application must encompass:

  1. Company Details: Name, address of the registered office, directors’ details, and nationalities.
  2. Registration Documents: Certificate of Registration from SECP, Memorandum, and Articles of Association.
  3. Facility Information: Storage capacities, precise location, and products to be stored.
  4. Environmental and Safety Clearances: EPA clearance certificate and explosive licence.
  5. Product and Transportation Details: Source of the product and mode of transportation.
  6. HSE Plans: Detailed HSE arrangements and emergency response systems.
  7. Undertakings: Commitment to use the storage facility solely for petroleum products.
  8. Licence Fee: A demand draft or pay order of Rs. 100,000 in favour of OGRA payable at Islamabad.

Review and Approval The review process involves OGRA ensuring all details are satisfactorily provided and that the facility complies with all necessary safety and operational standards. Supplementary information may be requested. Upon compliance, a licence will be granted to undertake the storage of oil in non-oil storage facilities.

Navigating the licensing process for oil storage facilities in Pakistan requires thorough preparation and adherence to OGRA’s regulatory framework. Josh and Mak International offers expert guidance to ensure your application process is smooth and compliant with all necessary requirements.

By The Josh and Mak Team

Josh and Mak International is a distinguished law firm with a rich legacy that sets us apart in the legal profession. With years of experience and expertise, we have earned a reputation as a trusted and reputable name in the field. Our firm is built on the pillars of professionalism, integrity, and an unwavering commitment to providing excellent legal services. We have a profound understanding of the law and its complexities, enabling us to deliver tailored legal solutions to meet the unique needs of each client. As a virtual law firm, we offer affordable, high-quality legal advice delivered with the same dedication and work ethic as traditional firms. Choose Josh and Mak International as your legal partner and gain an unfair strategic advantage over your competitors.

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