Saudi Arabia Mandates Licenses for Petroleum and Petrochemical Activities
Saudi Arabia's Ministry of Energy now requires licenses for all petroleum and petrochemical activities, including production, storage, transportation, and sales. This mandate, aligned with the new Law of Petroleum and Petrochemical Products (Royal Decree No. M/139, Jan 12, 2025), aims to ensure supply security, enhance sector oversight, and prevent violations. It supports Saudi Vision 2030 by promoting compliance, maximizing raw material value, and safeguarding consumer and operator interests. An electronic platform has been launched to facilitate license acquisition.
The Kingdom of Saudi Arabia's Ministry of Energy has officially reiterated the mandatory requirement for all entities engaged in petroleum and petrochemical activities to obtain necessary licenses and approvals. This comprehensive regulation applies to various operations, including production, storage, transportation, sale, and processing of these materials, ensuring full adherence to national standards. This directive is a direct consequence of the new Law of Petroleum and Petrochemical Products, enacted under Royal Decree No. (M/139) on January 12, 2025, which supersedes previous legislation on petroleum product trade.The core objective of this new law is multi-faceted: to guarantee the security, reliability, and stability of petroleum and petrochemical supplies throughout the Kingdom, bolster oversight of sector operations, elevate compliance standards, and actively prevent potential violations. By doing so, the legislation aims to maximize the inherent value of raw materials, facilitating their progression through higher stages of production. Beyond regulatory enforcement, the law is designed to protect the interests of both consumers and licensed operators, aligning seamlessly with the broader energy objectives outlined in Saudi Vision 2030.The licensing requirement extends to a wide array of activities, encompassing sales, purchasing, transportation, storage, usage, import, export, packaging, and processing of petroleum and petrochemical materials. All relevant entities are strictly mandated to secure these licenses in accordance with the law and its executive regulations. This initiative forms a crucial component of the Ministry’s overarching strategy to comprehensively regulate the petroleum and petrochemical value chain, from its source to the end-user, thereby fostering transparency, efficiency, and sustainability within the vital energy sector. To streamline the process, an electronic service has been established through the unified Energy Licensing Platform, enabling companies to efficiently obtain all required petroleum-related activity licenses.
