Key points
- NUPRC says the $300 Helicopter Levy for Air Navigational Services remains payable to NAMA.
- The commission says Terminal Navigational Charge does not apply to offshore helicopter operations supporting upstream petroleum activities.
- The clarification follows concerns raised by industry stakeholders over aviation-related charges.
Main story
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has clarified that the $300 Helicopter Levy for Air Navigational Services remains payable to the Nigerian Airspace Management Agency (NAMA), while the Terminal Navigational Charge (TNC) does not apply to offshore petroleum operations.
The commission disclosed this in a circular signed by its Chief Executive, Mrs Oritsemeyiwa Eyesan, following concerns raised by stakeholders in the upstream petroleum sector over the introduction and implementation of the levy and other aviation-related charges.
The concerns prompted the Minister of Aviation and Aerospace Development, Mr Festus Keyamo, to constitute a Ministerial Review Committee on March 9 to examine the charges affecting petroleum operations.
Following the review, NUPRC said the TNC did not apply to helicopter landings at private offshore facilities and platforms where the operations were in support of upstream petroleum activities.
The commission, however, said the TNC remained applicable to helicopter operations that were not related to upstream petroleum activities.
Such operations include medical evacuation, private charter services and agricultural activities, according to the commission.
NUPRC said the clarification was intended to distinguish helicopter operations supporting upstream petroleum activities from other commercial and private operations.
The commission said the $300 Helicopter Levy for Air Navigational Services remained payable to NAMA.
The clarification provides greater certainty for upstream petroleum operators over the aviation charges applicable to their offshore activities.
The issues
The clarification addresses concerns over the scope of aviation-related charges imposed on helicopter operations in the upstream petroleum sector.
While the $300 Helicopter Levy remains payable, NUPRC has distinguished it from the TNC, which it said does not apply to helicopter landings at private offshore facilities when the flights support upstream petroleum operations.
The distinction is significant for operators because the TNC continues to apply to helicopter operations outside upstream petroleum activities.
What’s being said
“The TNC did not apply to helicopter landings at private offshore facilities and platforms when such operations support upstream petroleum activities.” – Oritsemeyiwa Eyesan, NUPRC Chief Executive
“The $300 Helicopter Levy for Air Navigational Services remains payable to NAMA.” – NUPRC
What’s next
Upstream petroleum operators are expected to apply the clarified distinction when determining the aviation charges applicable to their helicopter operations.
The clarification should also guide stakeholders and relevant agencies in implementing the charges following the review of aviation-related fees affecting offshore petroleum activities.
Bottom line
NUPRC has maintained that upstream operators must continue to pay the $300 Helicopter Levy, but clarified that the TNC does not apply to offshore helicopter operations supporting petroleum activities.
The decision draws a clearer line between petroleum-support operations and other helicopter activities subject to the terminal charge.
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