(A) Licence for Construction and Operation of New Oil Pipeline
Introduction Establishing a new oil pipeline in Pakistan involves adhering to the guidelines set forth by the Oil and Gas Regulatory Authority (OGRA). This comprehensive process ensures compliance with safety, environmental, and technical standards. Here’s a detailed guide on obtaining a licence for the construction and operation of a new oil pipeline.
Application Submission The application for a licence to construct and operate a new oil pipeline must be submitted in the format specified in Part E of Schedule I under the Pakistan Oil (Refining, Blending, Transportation, Storage & Marketing) Rules, 2016.
Required Documents:
- Company Information: Include the name, address of the company’s registered office, and names and addresses of the directors with their nationality and shareholding details.
- SECP Documents: Certified true copies of the Certificate of Registration, Memorandum and Articles of Association, and relevant forms from the Securities and Exchange Commission of Pakistan (SECP), all attested by an authorised person.
- Site Possession: Documents proving the company’s possession of the site.
- EPA Clearance and NOC: Environmental Protection Agency (EPA) clearance certificate and No Objection Certificate (NOC) from the District Government.
- Feasibility Report: A comprehensive feasibility report detailing the pipeline’s work program, including the pipeline route, capacity, and technical specifications.
- Financial and Technical Competence: Proof of financial stability from a scheduled bank and technical competence, including profiles of experienced personnel.
- Project Cost and Financial Plan: Details of the estimated project cost and a financial plan showing how the company intends to finance the pipeline construction.
- Environmental and Safety Plans: Plans for managing environmental impacts and ensuring safety during construction and operation.
- Affidavits: Affidavits from directors stating that they are not disqualified, have not defaulted on loans, are not involved in criminal cases, and have no pending legal cases.
- Licence Fee: A fee of Rs. 2 million in the form of a Demand Draft/Pay Order in favour of OGRA, payable at Islamabad.
Process and Timeline:
- Review and Verification: OGRA will review the application and may request additional information or documentation.
- Site Inspection: OGRA may conduct site inspections to verify compliance with technical and environmental standards.
- Licence Issuance: Upon satisfactory completion of the review process, OGRA will issue a licence for the construction and operation of the oil pipeline.
Compliance Requirements:
- Construction Standards: Ensure compliance with national and international standards for pipeline construction.
- Environmental Regulations: Adhere to environmental regulations and obtain necessary clearances.
- Operational Safety: Implement robust safety measures to prevent leaks, spills, and other hazards.
For detailed guidance and support with the application process, Josh and Mak International can provide professional legal assistance.
(B) Licence to Operate Existing or Under Construction Oil Pipeline
Introduction Operating an existing or under construction oil pipeline in Pakistan requires a licence from OGRA. This process ensures that the pipeline meets all operational and safety standards. Below is a guide on how to obtain this licence.
Application Submission The application must be submitted as per the format in Part F of Schedule I under the Pakistan Oil (Refining, Blending, Transportation, Storage & Marketing) Rules, 2016.
Required Documents:
- Pipeline Information: Include the name and address of the pipeline operator, and names and addresses of the directors with their nationality and shareholding details.
- Registration Documents: Certified true copies of the Certificate of Registration, Memorandum and Articles of Association, and other relevant documents from SECP.
- Operational Certificates: Environmental Protection Agency (EPA) clearance certificate and NOC from the District Government.
- Pipeline Route and Capacity: Details of the pipeline route, capacity, and technical specifications.
- Financial and Technical Competence: Proof of financial stability and technical competence, including profiles of experienced personnel.
- Project Cost and Financial Plan: Detailed project cost and financial plan, including sources of funding.
- Safety and Environmental Plans: Detailed plans for ensuring operational safety and managing environmental impacts.
- Affidavits: Affidavits from directors stating their compliance with legal and financial standards.
- Licence Fee: A fee as determined by OGRA, typically Rs. 2 million, in the form of a Demand Draft/Pay Order in favour of OGRA.
Process and Timeline:
- Review and Verification: OGRA will review the application and may request additional information or documentation.
- Operational Inspection: OGRA may conduct inspections to ensure compliance with operational and safety standards.
- Licence Issuance: Upon satisfactory completion of the review process, OGRA will issue a licence for operating the existing or under construction oil pipeline.
Compliance Requirements:
- Operational Standards: Adhere to national and international standards for pipeline operation.
- Environmental Regulations: Ensure compliance with environmental regulations.
- Safety Protocols: Implement and maintain safety protocols to prevent accidents and environmental hazards.
For assistance with the application process, Josh and Mak International offers expert legal support to ensure compliance and successful licensing.
