Constructing a Filling station/LPG Plant in Nigeria -DPR Guide

Ever wondered what it takes (stipulated requirements/obligations) to get an official approval from the Federal Government to build and operate a Petrol station/ LPG plant in Nigeria?. Well, you could simply walk into the nearest DPR office, book an appointment, wait endlessly and maybe try another day OR you could simply read my post.

Here’s a little rundown of what DPR is and why you need DPR Approval/guidance before, during and after construction and when I say “before” I mean even before you purchase your land!.

WHAT IS DPR?

The Department of petroleum Resources (DPR), also known as the “Police” of the oil and gas industry in Nigeria is focused on regulating and monitoring all activities of the oil industry spanning over all operations in both the upstream (Exploration, discovery, production, treatment, transportation, delivery of oil and gas) and the downstream (Refining, transportation and marketing of finished products) divisions of the petroleum Industry.

WHY YOU NEED DPR

Here’s why you need DPR

1. Health and Safety concerns: The first consideration given in ANY engineering activity/industry is safety. Safety must be given the topmost priority as any lapse/failure could be drastically disastrous. DPR ensures your Station/outlet is constructed, maintained and operated in a safe manner, protecting your investment and your life/staff/customers from wreckage.

2. Legal backing/Official Approval: Any station/outlet constructed without an official DPR approval is termed “Illegal” .The disadvantages of constructing an illegal outlet is innumerable, aside the outrageous Penalties/very large fines (you may face demolition of your outlet), you would not be able to Buy Petroleum Products from Depots (Private/Public) amidst other penalties.

3. You save yourself a lot of money/trouble: Ever seen the effects of a petroleum storage tank failure?

Failed storage tank

Its massively disastrous and utterly expensive (clean up and getting new ones). DPR ensures that the integrity of your Underground storage tanks are tested to withstand environmental and sub-surface conditions. Leak tests, pressure tests and tank calibration are common test required for your own good.

I’m not a DPR advocate, so I would spare you the lecture and proceed to the Topic of the Day :).

The Following Stages Apply For Construction of a Petrol Station;

The Department of Petroleum Resources (DPR) – Guidelines to Approval and construction of a Petrol filling station.

STAGE 1: SITE SUITABILITY (SS)

For your site to be deemed suitable, the chosen site must meet the following minimum requirements are to be adhered to.

DPR MINIMUM REQUIREMENTS FOR CONSTRUCTING A PETROL FILLING STATION

The Land to be used must be a minimum of two (2) plots (900 square meters)
The proposed site must not be transverse by electric power high tension lines, pipeline right of way (ROW).
The proposed site must not be transverse by a canal, and should not be situated close to large public buildings like hospitals.
There must be no existing filling station either licensed or under construction within four hundred meters (400m) from the proposed site on the same side of the road.

§ If your site meets the above requirements, you can proceed to the nearest DPR office in your state and write a Site suitability inspection request letter (Typed with your company’s letter headed paper). DPR, would then assign an official to inspect your land. You may not have any issues if your site meets the above requirements.

§ If your site is deemed Suitable, a site suitability approval would be handed to you containing a site suitability approval number. You are advised to mount a signpost at the site bearing the company’s name and suitability number so anyone that intends to build a similar outlet (petrol station) would have to move his site at least 400meters from yours. Failure to do so would mean someone (maybe illegal station) could build a petrol station close to yours, making your site unsuitable…

§ Also note that suitability approval is only for a period of one calendar year, from the date on the approval letter, within which you must submit application for approval to construct.

§ Finally, bear in mind that statutory fees applies… nothing is free you know :) .

Hope the post was revealing, for questions kindly hit the comment box. Refer to my next post Constructing a petrol station in Nigeria Part 2 for the completion.