In this Law, the following words and phrases shall have the meanings assigned thereto, unless the context requires otherwise:

• Law: Law of Petroleum and Petrochemical Products.

• Regulations: Implementing Regulations of the Law.

• Ministry: Ministry of Energy.

• Minister: Minister of Energy.

• Person: A natural or legal person.

• Petroleum Products: Oils, bitumen, condensates, and the products derived therefrom through refining, production, treatment, and cracking operations; petroleum products resulting from distillation, manufacturing, maintenance, operation, or cleaning; and all types of liquid fuel, whether used or consumed.

• Petroleum Operations: The use, sale, purchase, transport, storage, import, export, packaging, or treatment of any petroleum product as well as the construction or operation of refineries, terminals, or distribution stations.

• Petrochemicals: Chemical compounds derived from the use of other hydrocarbon, petroleum, or petrochemical products as basic feedstock in their production, through separation or blending operations or through chemical reactions. Petrochemicals are also called basic, intermediate, transitional, and specialized materials.

• Petrochemical Operations: The production, treatment, sale, purchase, distribution, transport, storage, packaging, import, or export of petrochemicals as well as the operation of petrochemical facilities.

• Feedstock: A petroleum or petrochemical product or more used as input in any production operation through refining, blending, or chemical reactions.

• Refinery: A facility that refines crude oil or condensates to produce petroleum products through separation and treatment.

• Terminal: A site designated at seaports for the export, import, or local distribution of petroleum products.

• Distribution Station: A site designated for the local distribution of petroleum products.

• Treatment: The process of improving, purifying, or rehabilitating used petroleum or petrochemical products, petroleum or petrochemical products recovered from refineries and facilities, waste containing petroleum or petrochemical products, spent catalysts, or oil residues.

• Packaging: The process of filling a type of petroleum product into specially-designed containers for the purpose of circulation.

• License: A document granted by the Ministry authorizing a licensee to engage in petroleum or petrochemical operations.

• Licensee: person holding a license.

• Priced Petroleum Products: Petroleum products the local selling prices of which are set by the government.

This Law aims to:

• 1. regulate petroleum and petrochemical operations in a manner that serves public interest and protects the rights and interests of consumers and licensees;

• 2. increase private sector participation in petroleum and petrochemical operations and create a competitive environment to achieve economic growth, contribute to the GDP, and improve energy efficiency;

• 3. promote the circular carbon economy and manage greenhouse gases;

• 4. develop new uses for petroleum and petrochemical products, and maximize the benefit of raw materials and promote the downstream production thereof;

• 5. ensure the adherence of the petroleum and petrochemical products sector to national strategies and plans, laws and regulations, environmental specifications and standards, and safety and security rules;

• 6. ensure the security and reliability of petroleum and petrochemical product supplies; and

• 7. monitor and supervise petroleum and petrochemical operations to enhance compliance with the provisions of this Law and prevent practices in violation thereof.

The provisions of this Law shall apply to petroleum and petrochemical operations and matters associated therewith. The provisions of this Law shall not, however, apply to activities subject to the Law on the Distribution of Dry Gas and Liquefied Petroleum Gas for Residential and Commercial Purposes, nor to industrial applications that use petrochemical products as an essential or additional component to produce finished or semi-finished consumer products or to convert semi-finished products to finished products, which are produced by molding, blending, assembling, forming, remolding, or packaging through production operations which partially or mostly require the use of a machine.

The Regulations shall specify the following:

• 1. The technical, operational, and procedural rules necessary for engaging in petroleum and petrochemical operations.

• 2. Licensing requirements, scope of business, license duration, and any other requirement to be complied with by the licensee as well as the provisions for license amendment, renewal, and transfer.

• 3. Criteria for evaluating compliance with the terms of the license and the consequences of non-compliance.

• 4. Criteria and requirements for qualifying for and performing petroleum and petrochemical operations.

• 5. Criteria for the classification of materials containing petroleum products.

• 6. Rules and procedures for the purpose of ensuring the security and reliability of petroleum and petrochemical product supplies and securing the needs of the local market of such supplies.

1. A person may not engage in any petroleum or petrochemical operation without a license.

2. The Ministry’s approval must be obtained prior to the issuance of any license or approval required for the establishment of a petrochemical facility.

1. A fee shall be collected for license issuance and renewal and shall be deposited into the State treasury.

2. Part of the collected fees shall be allocated to the Ministry for the development of the petroleum and petrochemical operations sector.

The Ministry may deny any application for the issuance or renewal of an export license to a person whose violation of the provisions of this Law and the Regulations has been established pursuant to a decision by the committee provided for in Article 18 of this Law, or who has been convicted of smuggling, or attempting to smuggle, petroleum or petrochemical products, unless a period of at least five years has lapsed from the date of the decision establishing the violation or the date of the conviction. The competent authority shall provide the Ministry with the names of persons convicted of smuggling petroleum or petrochemical products.

The licensee shall notify the Ministry of any circumstance or incident that may lead to the total or partial cessation of the licensed business, whether permanently or temporarily, as specified in the Regulations.

1. Without prejudice to the jurisdiction of the Saudi Standards, Metrology, and Quality Organization, the Ministry shall approve the mandatory specifications and standards for petroleum and petrochemical products as well as the testing methods thereof.

2. The licensee shall, upon engaging in petroleum or petrochemical operations, comply with the approved specifications and standards.