The Department of Petroleum Resources (DPR) says the Bid Submission Due Date (BSDD) of the Request for Proposal (REP) of the Nigeria Gas Flare Commercialisation Programme (NGFCP) has been extended by six weeks.
Mr Paul Osu, Head, Public Affairs, DPR, made the announcement in a statement issued on Thursday in Lagos.
Osu said the extension was sequel to the Bidder’s Conference which held on Feb. 17 in respect to the NGFCP.
He said: “Accordingly, the new submission due date shall be April 10.
“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.
“Furthermore, the DPR shall provide relevant updates for data prying and leasing in the Data Room as necessary within the next one week,” he said.
Osu said in a bid to further incentivise the programme, the minimum floor price for flared gas would be $0.25 per million standard cubic feet (mscf) for Land Sites; Swamp and Shallow Offshore Sites would be $0.15/mscf while Deep offshore minimum floor price would be $0.10 /mscf.
He advised qualified applicants who were interested in embarking on flare site visit(s) to contact the DPR and ensure that due diligence was carried out before the BSDD.
The NGFCP was inaugurated on Dec. 13, 2016.
The programme would offer flare gas for sale by the Federal Government of Nigeria through a transparent and competitive bidding process. A structure has been devised to provide project bankability for flare gas buyers.
The purpose of the gas flare commercialisation programme is to reduce the flaring and venting of associated methane gas.