Jennifer Smith
Wed, Sep 13, 2023 8:30 PM

NUPRC Announces Successful Bidders for Nigerian Gas Flare Commercialisation Programme

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NUPRC Announces Successful Bidders for Nigerian Gas Flare Commercialisation Programme
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced the successful bidders for the Nigerian gas flare commercialisation programme. This initiative aims to harness gas released as a byproduct of oil production and eliminate routine gas flaring by 2035. The NUPRC awarded 42 companies/entities with 49 flare sites for development. These companies will now proceed to execute commercial agreements and obtain permits to access flare gas. KPMG will partner with the commission to ensure the successful outcome of the programme.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced the successful bidders for the Nigerian gas flare commercialisation programme. This initiative aims to harness gas released as a byproduct of oil production and eliminate routine gas flaring by 2035.

The Nigerian government launched the National Gas Flare Commercialisation Programme in 2016 to involve third-party investors or off-takers in the utilization of gas flared during oil production. This initiative aligns with the government's goal of achieving zero routine gas flaring by 2035 and net zero emissions by 2060 in the country.

The NUPRC revealed that 226 companies submitted bids for the Nigerian Gas Flare Commercialisation Programme (NGFCP) before it was temporarily suspended due to the COVID-19 pandemic in 2020. Last October, the government relaunched the programme and opened bids once again.

In a recent statement, the NUPRC announced the issuance of letters of award to 42 companies/entities considered successful in the bidding process for 49 flare sites. Out of these, 38 companies were awarded standalone single flare site developments, while four were allocated nine sites to be developed as clusters.

The commission also designated reserve bidders for certain flare sites in case the preferred bidders fail to meet the terms and conditions specified in the Request for Proposal (RFP). Letters of award are currently being transmitted to the successful entities through appropriate channels.

The NUPRC's restructuring of the NGFCP in line with the Petroleum Industry Act (PIA) and diligent engagement with stakeholders has been credited for the significant success of the bidding process.

The commission indicated that, following the evaluation of Statement of Qualification (SOQ) submissions, a total of 139 companies/entities were deemed qualified and awarded the Qualified Applicant status. These entities proceeded to submit technical, commercial, and financial proposals for the offered flare sites.

Upon evaluation of the proposals, the NUPRC approved 38 companies/entities for standalone single flare site developments and four companies/entities for cluster development. Reserve bidders were also announced to ensure an alternative in case the preferred bidders cannot fulfill the RFP requirements.

At this stage of the programme, the successful bidders will proceed to execute commercial agreements and pay the prescribed award fees. Once these steps are completed, they will obtain the necessary Permit to Access Flare Gas from the commission.

The NUPRC emphasized the importance of the successful bidders following through with the final stages of the programme to become permit holders and implement viable projects that harness flared gas for value creation.

KPMG, a global network of professional firms, has been approved as a partner to help ensure the successful outcome of the gas flare commercialisation process.

Source of content: OOO News 2023-09-13 News

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