The Department of Petroleum Resources (DPR) yesterday announced the minimum floor price bid for its 45 flare gas sites (first stage) under the Nigeria Gas Flare Commercialization programme (NGFCP).
This was even as the regulator announced that the Bid Submission Due Date (BSDD) of the Request for Proposal (REP) has been extended by six (6) weeks, saying the new submission due date shall now be April 10, 2020.
The NGFCP was launched in 2016 to eliminate gas flaring through technically and commercially sustainable gas utilization projects developed by competent third party investors who have been invited to participate in a competitive and transparent bid process.
Under the NGFCP bid price regime, DPR disclosed that the minimum floor price for flare gas in land sites shall be $0.25 per million standard cubic feet(mscf), swamp and shallow offshore sites;$0.15 per mscf and $0.10 mscf for deep offshore.
‘‘Consequently, qualified applicants should note that inputs, comments and observations on the draft Gas Sales Agreement (DSA), Milestone Development Agreement (MDA), Connection Agreement (CA), and Deliver or Pay Agreement (DoPA) posted on the portal are expected on or before March 5, 2020.
Furthermore, the Department shall provide relevant updates for data prying and leasing in the Data Room as necessary within the next one (1) week.’’
The Department advised qualified applicants who are interested in embarking on flare site visit(s) to contact the DPR through [email protected] and ensure that due diligence is carried out before the Bid Submission Due Date (BSDD).
Recall that DPR had on February 17, 2020 at a bidders’ conference organized in Lagos announced the short listing of 200 companies to develop 45 gas flare sites under the NGFCP.
DPR Director, Mr. Sarki Auwalu, had disclosed that the 200 bidders were drawn from a pool of 800 who had expressed interest to manage about 178 gas flare sites.
The DPR helmsman stated further that in selecting the 200 bidders, careful consideration was given to their capacity, quality of service, track record and ability to deliver on set targets.