FG picks 42 successful bidders for gas flare commercialisation programme

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says 42 oil and gas companies emerged winners of 49 flare sites in the 2022 Nigerian Gas Flare Commercialisation Programme (NGFCP) bid process.

In a statement on Wednesday, the commission said it had approved KPMG, a global network of professional firms, for a partnership on the implementation of the award to ensure a successful outcome.

According to the NUPRC, 38 of the companies have been awarded 40 flare sites “for standalone single flare site development”, while four entities were awarded nine sites to be developed as clusters.

“Reserve bidders’ status has also been accorded some companies for the corresponding flare sites in case the preferred bidders fail to meet the terms and conditions stipulated in the RFP,” the agency said.

The commission said award letters are already being transmitted to the respective successful entities through the appropriate channels.

“In furtherance of its mandate in Section 7 (e) and Section 105 (2) of the Petroleum Industry Act (PIA), 2021, the Commission, in the third quarter of 2022, restructured the NGFCP and re-launched the programme to align with the provisions of the PIA, as well as reflect prevailing economic and operational realities,” the statement reads.

HOW SUCCESSFUL BIDDERS WERE SELECTED

The commission said the success recorded in the NGFCP bid process was due to a series of focused engagements with relevant stakeholders; including domestic investors, international development agencies, oil and gas producers, technology providers, and financial institutions during the intervening months. 

The engagements, NUPRC said, 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, three hundred (300) companies/entities indicated interest in either revalidating their prequalification status as existing participants or submitting Statement of Qualification (SOQ) as new participants,” NUPRC said.

“Following the evaluation of SOQs, a total of one hundred and thirty-nine (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 forty-nine (49) flare sites on offer.

“Eighty-eight (88) entities, comprising individual companies and consortiums responded to the RFP and submitted a total of one hundred and thirty-seven (137) proposals, each containing technical, commercial and financial documentation for one or more of the forty-nine (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 forty (40) sites for standalone single flare site developments and four (4) companies/entities for nine (9) 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 NUPRC said, the preferred bidders would individually proceed to execute the suite of commercial agreements with relevant parties.

They would also effect payment of the prescribed award fees to enable the grant of permit to access flare gas, the commission added.