• Thu. Mar 30th, 2023

    Gas flares commercialisation: NUPRC invites 139 prospective investors to bidders’ conference, investors’ forum


    Jan 25, 2023

    By Bassey Udo

    To promote the national objectives under the Nigerian Gas Flare Commercialisation Programme (NGFCP), 139 successful applicants pre-qualified to invest in the country’s gas sector will participate in the second Bidders’ Conference/Investors Forum scheduled for Abuja, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has said.

    As part of the ongoing 2023 Mini Oil Licensing Bid Round, the regulatory commission organised the pre-bid conference in Lagos on January 16.

    The conference attended by prospective bidders and key industry stakeholders was to ensure only competent local and foreign investors with the right technical and financial capacity, capability and competence in deep water operations emerge at the end of the process.

    To consolidate on the gains of the conference, the Commission Chief Executive, Gbenga Komolafe, who announced said on Tuesday another Bidders’ Conference/Investors Forum was being planned for February 2, 2023 in Abuja, to ensure competent investors in the gas sector would be selected.

    Komolafe said the conference would enable stakeholders and investors in the country’s upstream petroleum sector to seek clarifications on issues on the bid exercise bordering on gas development.

    He said participants in the forthcoming hybrid conference would include qualified applicants, financiers, technology providers, equipment manufacturers, service providers, funders, and other entities interested facilitating engagements of qualified applicants with technology providers, prospective lenders, finance institutions as well as foster business relationships and partnerships for a successful bid.

    Under the Nigerian Gas Flare Commercialisation Programme (NGFCP 2022) relaunched in August 2022, the NUPRC said it was determined to drive Nigeria’s commitment to end routine gas flaring within the decade, support the imperatives of the Nigeria Energy Transition Plan (ETP) and create value from waste.

    Consequently, the Commission CEO said the NGFCP 2022 was restructured to reflect current gas flaring situation and prevailing operational realities in the industry, as well as changes in the socio-economic landscape to align with the provisions of the Petroleum Industry Act 2021 (PIA).

    Apart from redefining the legal, governance, regulatory, and fiscal structure of the country’s oil and gas industry for enhanced efficiency and value, Komolafe said the PIA provides a framework for flare elimination and monetisation through the NGFCP.

    In line with Section 105 (2) of the PIA, the Commission said it commenced the Request for Qualification (RFQ) of the NGFCP 2022 through the issuance of Statement of Qualification (SOQ) for existing applicants to validate their status, while encouraging new investors to register to participate through the NGFCP website/ portal.

    At the close of the SOQ submission deadline, the Commission harvested 300 companies/entities.

    The entities that registered their interest to either revalidate their prequalification status as existing participants, or submit Statement of Qualification (SOQ) as new participants, included existing participants, new investors, multilateral institutions, equipment manufacturers as well as domestic and international investors.

    In line with the provisions of the RFQ, about 139 applicants were shortlisted and awarded the Qualified Applicants status at the end of the SOQ evaluation exercise.

    The qualified applicants whose names have since been published on the Commission’s website portal have been asked to proceed to the Request for Proposal (RFP) phase of the NGFCP 2022.

    To realise the objectives of the NGFCP 2022, the Nigerian government pledged its commitment to Net Zero carbon emissions by 2060, passed the Climate Change Act, and launched the Nigeria Energy Transition Plan.

    Komolafe said the NGFCP 2022 ensured the flare commercialisation initiative was modified to adapt to changes in the industry and market with a renewed focus to implement policy objectives for flare elimination, environmental sustainability, and gas-based industrial economy in the country.

    The bid objectives were to eliminate routine gas flaring and create additional revenue from gas sales; monetise flare gas resources, prevent pollution and create value from waste gas; deepen in-country value addition through indigenous participation in the sector.

    Also, it was to support the achievement of the National Determined Contributions (NDC) towards the Paris agreement (COP 26) and the Nigerian Energy Transition Plan (ETP).

    “The NGFCP 2022 will attract Foreign Direct Investments (FDIs) in the Oil and Gas Industry and
    create gas-based industrialisation for enhanced socio-economic benefits in and around host communities in producing areas,” Komolafe said.

    Following a series of stakeholder consultations, the CCE said RFP package and Suite of Commercial Agreements have already been issued to qualified applicants and given time to study the document and commence packaging their bids.

    He said additional comments, inputs and feedback from relevant stakeholders would be received, evaluated, and considered during the February meeting 2 Bidders’ Conference & Investors’ Forum in Abuja.

    While urging the successful applicants to follow through with the subsequent stages of the Programme, Komolafe said this would ensure that they transit towards becoming a Permit Holder/Flare Gas Buyer in line with the applicable statutes.

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