In a significant move to reduce gas flaring and boost economic growth, the Federal Government of Nigeria has chosen 42 companies to participate in the 2022 Nigerian Gas Flare Commercialisation Programme.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) made this announcement in Abuja.
Out of the 42 selected companies, 38 have been awarded 40 individual flare sites for standalone development, while four will develop nine sites as clusters.
Additionally, reserve bidders have been designated in case the primary awardees fail to meet stipulated terms and conditions.
This development follows the restructuring of the gas flare commercialisation program in the third quarter of 2022, aligning it with the Petroleum Industry Act and the current economic landscape.
The success of this initiative is attributed to engagement with various stakeholders, including domestic and international investors, development agencies, oil and gas producers, technology providers, and financial institutions.
The NUPRC revealed that 139 companies expressed interest in participating, leading to the issuance of Request for Proposal in early 2023. A total of 88 entities submitted comprehensive proposals for one or more of the 49 flare sites available.
After rigorous evaluation, 38 companies were selected for standalone developments, and four for cluster development.
The next steps involve the preferred bidders finalizing commercial agreements and fulfilling payment requirements. KPMG, a global professional firm, will collaborate with the NUPRC to ensure the successful execution of the gas flare commercialisation process.
The NUPRC congratulated the successful bidders and encouraged them to proceed with their projects to harness flare gas for value creation.
This initiative represents a significant step toward reducing gas flaring and promoting sustainable development in Nigeria.
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