DPR assures transparency for 200 shortlisted investors for gas flare sites

… Identifies 45 Sites for Gas Flare Commercialisation Programme


The journey toward ensuring zero gas flair in the nation received a major boost, as the federal government has identified 45 out of 178 gas flaring sites in the country, which will be awarded to successful bidders for the commencement of the first phase of the National Gas Flare Commercialisation Programme (NGFCP).

Also, 200 investors have been shortlisted to bid for gas flare sites after the evaluation of statements of qualification submitted by interested companies.

The Director, Department of Petroleum Resources (DPR) disclosed this while speaking at the National Gas Flare Commercialisation Programme (NGFCP) Bidders conference in Lagos, stressing that DPR will ensure transparency and integrity throughout the bidding process.

He affirmed that as a federal government agency, DPR is deliberate about contributing to the efforts of President Muhammadu Buhari’s administration to drastically reduce the 320 billion Cubic Feet of Gas (BCF) flared in 2019.

He noted that in October 2016, the President, inaugurated the NGFCP, aimed at reducing gas flaring by harnessing flare gas to stimulate economic growth, drive investments and provide jobs in the Niger Delta through the utilisation of widely available innovative technologies.

Auwalu, expressed that the programme would create an opportunity for qualified investors to develop the gas currently being flared, adding that this would also generate employment in the country.

According to him, “There are 200 companies that are shortlisted; over 800 expressed interest. We looked at the capacity and quality of what they have; so, 200 have been shortlisted to compete for the 45 sites.

“There are other sites that are coming on board. This is to show that investors are interested in Nigeria because of its potential. We cannot allow this potential to stay untapped.”

He also stated that the Federal Government as part of the Paris Climate Agreement committed to end gas flaring as part of efforts to combat global warming.

Also in his remarks ,The Deputy Manager, Gas Production and Flare Monitoring, Gas Division, NNPC, Mr Olawole Ogunsola, said the programme implementation commenced in earnest in October 2018 when the DPR placed adverts for expression of interest from investors.

He said statements of qualification submitted were evaluated in July 2019, and qualified applicants emerged.

According to him, the Request for Proposal and the commercial agreements were issued in January this year.

Ogunsola said, “The government is committed to accelerating this programme and see that it comes to an end.

“The DPR has deployed all mechanisms to conclude this seamlessly, proficiently and efficiently.

“We invite the investors to submit credible proposals that will stand the test of time, that will create value for you and help us address this recurring decimal of gas flaring.”

He said after the RFP stage, where the proposals submitted would be evaluated, preferred bidders would emerge and then permits would be issued.

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