The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced the granting of gas flaring licenses to 42 companies as part of the 2022 Nigerian Gas Flare Commercialisation Programme (NGFCP).
Out of 300 interested companies, these 42 were selected after a rigorous auction process. The licensing aligns with the stipulations in the Petroleum Industry Act, 2021, addressing current economic and operational conditions.
For the 2022 NGFCP Auction, 49 Flare Sites were proposed, of which 38 companies were awarded 40 sites for individual development, and 4 were granted 9 sites for clustered development. Additionally, several companies have been designated as “Reserve bidders” should primary awardees not fulfill the requirements outlined in the Request for Proposal (RFP).
The success of the NGFCP bid process was attributed to comprehensive consultations with local and international stakeholders, investors, oil and gas producers, technology providers, and financial institutions. With 300 companies initially showing interest, 139 were deemed eligible after evaluations. 88 of these, including individual companies and consortiums, responded to the RFP with 137 proposals. From these, 38 were chosen for standalone site developments and four for clustered sites.
Now, these chosen companies will enter the next phase, finalizing commercial agreements and paying the stipulated award fees to receive their Permit to Access Flare Gas. KPMG, an internationally recognized professional network, will collaborate with the Commission to ensure the effective implementation of this commercialization initiative. The Commission commended the successful bidders and urged them to proceed diligently, leveraging flare gas for economic value.
Leave a Reply