On Wednesday, the Federal Government declared that 42 companies had received letters of award for the 2022 Nigerian Gas Flare Commercialization Program.
It declared this in a statement issued in Abuja by the Nigerian Upstream Petroleum Regulatory Commission.
The following is an excerpt from the statement: “The Nigerian Upstream Petroleum Corporation (NUPRC) hereby announces the outcome of the bidding exercise and issuance of letters of award to 42 companies/entities deemed successful in the fiercely contested bid for 49 flare sites put forward during the 2022 Nigerian Gas Flare Commercialization Programme auction process.
“For standalone single flare site development, 38 of the companies/entities have received awards of 40 flare sites, while four have received awards of nine sites for cluster development.
In the event that the chosen bidders do not comply with the terms and conditions outlined in the RFP (Request for Proposal), reserve bidder status has also been granted to some companies for the associated flare locations.
According to the NUPRC, award letters have already been sent through the proper channels to the corresponding successful firms.
The NUPRC reorganized the gas flare commercialization program and re-launched it in the third quarter of 2022 to comply with the Petroleum Industry Act’s requirements and to take into account the country’s current operational and economic conditions.
The commission claimed that several interactions with pertinent parties were responsible for the NGFCP bid process’ notable success.
The article stated that the players include domestic investors, foreign development organizations, oil and gas producers, technology companies, and financial institutions.
The upstream oil industry regulator claimed that the commission’s obligations included igniting and maintaining interest in the program, luring investors, and encouraging participation from both local and foreign organizations.
It was mentioned that 300 businesses/entities responded to the Request for Qualification sent out in the fourth quarter of last year by indicating a desire to either submit a Statement of Qualification as new participants or revalidate their pre-qualification status as current participants.
“After the SOQs were assessed, 139 applicants received the qualified applicant status, making them successful. The commission then released the Request for Proposal in the first quarter of 2023 to allow qualified candidates to compile their own bids for any of the 49 flare sites up for grabs.
According to the NUPRC, “88 entities, including individual businesses and consortiums, replied to the RFP and submitted a total of 137 proposals, each of which included technical, commercial, and financial paperwork for one or more of the 49 flare locations for either standalone or cluster development.”
According to the statement, the commission properly reviewed the applications and obtained clearance to name 38 firms and entities as the successful bidders for 40 sites for independent, single-flare site developments and four companies and entities for nine sites to be developed as clusters.
In addition, some businesses received reserve bidder status for the respective flare locations in the event that the preferred bidders don’t adhere to the RFP’s requirements.
The statement read, “At this point, the preferred bidders would move individually to negotiate the collection of commercial agreements with pertinent parties and effect payment of the specified award fees to enable the issue of permit to access flare gas by the commission.”
The upstream regulator announced that KPMG, a global network of professional firms, had received approval to collaborate with the commission in the implementation of the award in order to guarantee the success of the gas flare-out commercialization process.
The commission thanked the selected bidders and urged them to proceed with the remaining program steps in order to get permits and carry out workable projects that would use flare gas to generate value.
