NUPRC: Offshore Helicopter Levy Exemption Nigeria for TNC

• The NUPRC has confirmed the retention of a $300 helicopter levy for air navigational services.
• Upstream petroleum operators are now exempt from the Terminal Navigational Charge (TNC) for landings at private offshore facilities.
• This decision, outlined in an August 28, 2026 circular, followed a ministerial review committee's recommendations.
• Operators must adjust contractual and cost-recovery arrangements to reflect these changes.
• New charges impacting upstream operations will require prior consultation with NUPRC and stakeholders, in line with PIA Section 25.

No new or revised fee, levy, or charge with a direct impact on upstream petroleum operations should be introduced without prior consultation with the NUPRC and other relevant stakeholders.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has issued a significant directive confirming the continued application of a $300 helicopter levy for air navigational services while simultaneously exempting upstream petroleum operators from the Terminal Navigational Charge (TNC) for landings at private offshore facilities and platforms. This clarification, communicated via a circular dated August 28, 2026, follows a comprehensive ministerial review initiated in response to concerns raised by upstream petroleum stakeholders regarding the structure and implementation of the helicopter levy.

Signed by Mrs. Oritsemeyiwa Eyesan, the Commission Chief Executive, the circular mandates all upstream petroleum operators, licensees, lessees, and their associated helicopter service providers to promptly adjust their contractual, invoicing, and cost-recovery arrangements to reflect these updated regulations. This move aims to provide greater certainty regarding upstream petroleum aviation costs and ensure compliance across the sector.

The retention of the $300 levy means that this charge will remain in force, payable to the Nigerian Airspace Management Agency (NAMA) through its established collection mechanisms. However, the exemption from the TNC for offshore facilities marks a crucial distinction, directly impacting the financial obligations of companies operating in Nigeria's offshore oil and gas sector.

The NUPRC's announcement stems from the findings of a Ministerial Review Committee, which was established on March 9, 2026, by the Minister of Aviation and Aerospace Development. This committee comprised key representatives from the NUPRC itself, the Ministry of Aviation and Aerospace Development, the Office of the National Security Adviser, the Nigerian Civil Aviation Authority (NCAA), the Nigerian Airspace Management Agency (NAMA), and NAMA's appointed collection consultant.

The committee's review specifically differentiated between the $300 helicopter levy and the Terminal Navigational Charge (TNC). It determined that the TNC would only be applicable when a helicopter lands at a government-owned aerodrome. Consequently, the TNC will not apply to landings at private offshore facilities or platforms that support upstream petroleum operations, thereby providing a clear offshore TNC exemption Nigeria.

It is important to note that while upstream petroleum operations at private offshore sites are exempt from the TNC, the charge will continue to apply to helicopter activities outside the upstream petroleum sector. This includes operations such as medical evacuations, private charters, and agricultural flights, ensuring that the NAMA helicopter levy framework remains robust for other aviation segments.

For cost reporting purposes, the retained $300 helicopter levy will be classified as a statutory air navigation charge. The NUPRC has indicated that it will subsequently issue detailed guidance to operators regarding the applicable classification and reporting requirements. This guidance will also address the treatment of any cost elements previously recorded in relation to the TNC for upstream helicopter services, ensuring a smooth transition for accounting practices.

In a related development, NAMA is set to deploy low-altitude flight monitoring and surveillance systems to enhance national security and airspace governance. This initiative will necessitate relevant operators providing flight manifests, movement logs, and offshore activity data. The NUPRC emphasized that these requirements fall within NAMA's statutory mandate and will be communicated directly by the airspace management agency.

Crucially, the ministerial committee also established a precedent for future regulatory changes: no new or revised fee, levy, or charge with a direct impact on upstream petroleum operations should be introduced without prior consultation with the NUPRC and other relevant stakeholders. This requirement aligns directly with Section 25 of the Petroleum Industry Act (PIA), 2021, reinforcing the need for collaborative regulatory engagement in the Nigerian upstream petroleum sector.

This comprehensive clarification by the NUPRC is expected to bring much-needed certainty to oil and gas operators and their helicopter service providers regarding upstream petroleum aviation costs. By clearly defining the applicability of the $300 helicopter levy and the offshore TNC exemption Nigeria, the commission has provided a framework for more accurate financial planning and operational budgeting.

Operators must now meticulously review and adjust their existing contractual, invoicing, and cost-recovery arrangements to ensure full compliance with the NUPRC's directive. The emphasis on consultation for any future charges, as per Petroleum Industry Act Section 25, also signals a more structured approach to regulatory changes, offering stakeholders a defined pathway for engagement on potential new upstream petroleum aviation costs.

Lawyers and compliance officers must advise Nigerian upstream petroleum operators on adjusting contractual and cost-recovery arrangements to reflect the retained $300 helicopter levy and the TNC exemption for offshore facilities, ensuring compliance with NUPRC's directive and the consultation requirements under PIA Section 25 for any future charges.

Source: Original reporting via Leadership