42 successful bidders announced in 2022 Nigerian Gas Flare Commercialisation Programme
The Nigerian Upstream Petroleum Regulatory Commission has announced 42 bidders as winners in the 2022 Nigerian Gas Flare Commercialisation Programme (NGFCP) auction process.
NUPRC, in their announcement, stated that the issuance of letters of award to these 42 companies/entities who were successful in the bidding process is currently in progress.
The commission, in its statement, revealed that these 42 winning bidders have been awarded rights to develop 49 Flare Sites that were part of the 2022 NGFCP Auction process. Out of these, 38 companies/entities have secured 40 Flare Sites for standalone single flare site development, while four entities have been awarded nine sites to be developed as clusters.
Furthermore, NUPRC also extended ‘Reserve bidder’ status to certain companies, allowing them the opportunity to step in if the preferred bidders fail to meet the stipulated terms and conditions outlined in the Request for Proposal (RFP).
According to the commission, award letters are currently in the process of being transmitted to the successful entities through the appropriate channels.
These 42 successful winners were selected from a pool of 300 companies/entities that had expressed interest in either reaffirming their prequalification status as existing participants or submitting a Statement of Qualification (SOQ) as new participants.
The NGFCP was restructured and relaunched by the Commission in the third quarter of 2022 to align with the provisions of the Petroleum Industry Act (PIA) of 2021 and to better reflect the prevailing economic and operational conditions. The Commission attributed the substantial success of the NGFCP bid process to extensive engagements with various stakeholders, including domestic and international investors, development agencies, oil and gas producers, technology providers, and financial institutions over the preceding months.
Giving a background, the commission said: “The engagements by the
Commission were to galvanise and sustain interest in the programme, attract investments and stimulate participation by local and foreign entities.
“In response to the Request for Qualification (RFQ) issued in the fourth quarter of 2022, 300 companies/entities indicated interest in either revalidating their prequalification status as existing participants or submitting Statement of Qualification (SOQ) as new participants.
“Following the evaluation of SOQs, a total of 139 applicants were deemed successful and awarded the Qualified
Applicant status.
“Subsequently, in the first quarter of 2023, the Commission issued the Request for Proposal (RFP) to enable qualified applicants to put together their respective proposals for any of the 49 flare sites on offer,” NUPRC stated.
It also noted that “Eighty-eight entities, comprising individual companies and consortiums responded to the RFP and submitted a total of 137 proposals, each containing technical, commercial and financial documentation for one or more of the 49 flare sites for either standalone or cluster development.
The proposals were duly evaluated by the Commission and approval secured
to announce 38 companies/entities as successful bidders for 40 sites
for standalone single flare site developments and four companies/entities for nine sites to be developed as clusters; while some companies were
also awarded Reserve Bidders status for the corresponding flare sites in case
the Preferred Bidders fail to meet the terms and conditions contained in the
RFP. At this stage, the Preferred Bidders would individually proceed to execute the Suite of Commercial Agreements with relevant parties and effect payment of the prescribed award fees to enable the grant of Permit to Access Flare Gas by the Commission.
KPMG, a global network of professional firms, has been approved to partner with the Commission in the implementation of the award to ensure successful outcome of the gas flare-out commercialisation process.
“The Management congratulates the successful bidders and enjoins them to follow through with the final stages of the programme towards becoming Permit Holders and executors of viable projects that would harness flare gas for value creation,” it said.
