NUPRC unveils successful bidders for gas flare commercialisation project

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced the outcome of the bidding exercise and issuance of letters of award to 42 companies/entities that were successful in the bid for 49 Flare Sites enlisted during the 2022 Nigerian Gas Flare Commercialisation Programme (NGFCP) Auction process.
This was disclosed by the management of the petroleum regulatory body via a press statement released Tuesday, and made available to our correspondent.
The statement noted that thirty-eight of the companies/entities had been awarded forty Flare Sites for standalone single flare site development, while four were awarded nine sites to be developed as clusters, adding that Reserve bidders’ status had 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.
NUPRC further said: “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 Commission notes that the significant 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 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, 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.
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 Commission said that the bid proposals were duly evaluated and followed through transparently with the partnership of a renowned professional business development and accounting firm, KPMG, to supervise the implementation, even as it urged the successful bidders to ensure value creation.
It stated: “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 commercialization 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.”

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