Nigerian Gas Flare Commercialization Program Welcomes 42 New Participants
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has granted approval to 42 companies/entities who took part in the 2022 Nigerian Gas Flare Commercialization Program (NGFCP) Auction. This marks a significant expansion of the program, with successful participants receiving their award letters.
In an announcement made on Wednesday, the NUPRC disclosed that among the 42 companies/entities, 38 have been selected for the development of 40 standalone single flare sites, while 4 have been chosen for the development of 9 cluster sites.
The NUPRC has also designated reserve bidders for specific flare sites as a precautionary measure in case the primary bidders do not meet the terms and conditions outlined in the Request for Proposal (RFP).
The NUPRC emphasised its commitment to aligning the NGFCP with the provisions of the Petroleum Industry Act (PIA) from 2021 and adapting to current economic and operational circumstances. This restructuring took place in the third quarter of 2022.
The success of the NGFCP bid process can be attributed to dedicated efforts in engaging with various stakeholders, including domestic and international investors, development agencies, oil and gas companies, technology providers, and financial institutions over the past months. These engagements aimed to generate interest, attract investments, and encourage participation from local and foreign entities.
In response to the Request for Qualification (RFQ) issued in late 2022, a total of 300 companies/entities expressed interest in either renewing their prequalification status or submitting a Statement of Qualification (SOQ) as new participants. After SOQ evaluations, 139 applicants achieved Qualified Applicant status. Subsequently, in early 2023, the Commission issued the Request for Proposal (RFP) to allow qualified applicants to present their proposals for any of the 49 flare sites available.
A total of 88 entities, comprising individual companies and consortiums, responded to the RFP; submitting 137 proposals, each encompassing technical, commercial, and financial documentation for one or more of the 49 flare sites, whether for standalone or cluster development.