The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has issued 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.
The petroleum regulatory body confirmed the issuance of the letters of award via a press statement issued on Tuesday.
It stated that 38 of the companies/entities had been awarded 40 Flare Sites for standalone single flare site development, while four were awarded nine sites to be developed as clusters.
The commission added 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 stated: “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 consortia 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”, it added.
The Commission clarified further 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.
