Saudi Energy Ministry Mandates Licenses for All Petroleum and Petrochemical Operations
Saudi Arabia's Ministry of Energy now requires prior licensing for all petroleum and petrochemical activities under a new law. Replacing an older trade law, this mandate aims to secure supplies, enhance oversight, combat violations, optimize raw material use, protect consumer interests, and support Vision 2030 goals. It covers activities like sale, transport, storage, import, and export. An online service has been launched to facilitate obtaining these essential licenses, ensuring comprehensive regulation from source to consumer.
Saudi Arabia's Ministry of Energy has issued a significant mandate requiring prior licensing for all activities related to petroleum and petrochemical materials. This new directive stems from the recently enacted Petroleum and Petrochemical Materials Law, established under Royal Decree No. (M/139). The legislation effectively replaces the former Law of Trade in Petroleum Products, signifying a comprehensive overhaul of regulatory frameworks within the sector.TheThe primary goals of this new law are extensive and align with national strategic objectives. It aims to ensure the security and reliability of petroleum and petrochemical supplies throughout the kingdom, while simultaneously strengthening oversight and supervision of all sector operations. This enhanced regulatory control is intended to boost compliance with established requirements and deter violations. Furthermore, the law seeks to optimize the use of raw materials, encouraging their transition into advanced production stages, thereby adding value to the national economy. Protecting the interests of both consumers and legitimate license holders is another key objective. Ultimately, these measures are designed to contribute substantially to achieving the ambitious goals set forth in Saudi Vision 2030 for the energy sector.The scope of activities covered by this law is broad, encompassing various stages of the supply chain, including the sale, purchase, transportation, storage, use, import, export, packaging, and processing of petroleum and petrochemical materials. To facilitate smooth compliance, the Ministry of Energy has launched an electronic service on its online platform, enabling businesses to conveniently apply for and obtain the necessary licenses. This initiative underscores the ministry's commitment to regulating and managing petroleum and petrochemical operations comprehensively, from the initial source to the end consumer.
