*DPR extends bid submission due date of the request for proposal by six weeks
The Federal Government has disqualifued applications by 600 firms as the race for multi- million dollars gas flare monetisation contracts hots up.
The announcement for the contract was made through the Department of Petroleum Resources (DPR) for 45 sites where foreign and local oil firms flared 320 billion cubic feet of gas in one year.
This, a document obtained from the DPR showed at the weekend, came as race for the gas flare contracts was heightened.
The DPR has already extended bid submission due date (BSDD) of the request for proposal (REP) by one and half months.
“Dear applicants for the Nigeria Gas Flare Commercialization Programme (NGFCP), Sequel to the Bidder’s conference, which held on the 17th February 2020 in respect of the Nigeria Gas Flare Commercialization Program (NGFCP) bid process, please be informed that the Bid Submission Due Date (BSDD) of the Request for Proposal (REP) has been extended by six weeks,” the document read.
Accordingly, the new submission due date shall be 10th April 2020.
“Consequently, qualified applicants should note that inputs, comments and observations on the draft Gas Sales Agreement (DSA), Milestone Development Agreement (MDA), Connection Agreement (CA), and Deliver or Pay Agreement (DoPA) posted on the portal are expected on or before 5th March 2020
“Furthermore, the Department shall provide relevant updates for data prying and leasing in the Data Room as necessary within the next one (1) week,” it added.
Also, in a bid to further incentivize the programme, the minimum floor price for flare gas shall, according to the industry regulator, be as follows based on terrain, Minimum Floor and Price.
“Land Sites 0.25 US$/mscf; Swamp and Shallow Offshore Sites is 0.15 US$/mscf, while Deep offshore is 0.10 US$/mscf,” the document read.
Finally, it continued, qualified applicants who are interested in embarking on flare site visit(s) are advised to contact the Department of Petroleum Resources through and ensure that due diligence is carried out before the Bid Submission Due Date (BSDD).
It would be recalled that to reduce the 320 billion Cubic Feet of Gas (BCF) flared in 2019, the government through the DPR, has announced the shortlisting of 200 companies out of 800 firms to develop 45 gas flare sites across the country under its Nigeria Gas Flare Commercialisation Programme (NGFCP).
DPR Director and Chief Executive Officer, Mr. Sarki Auwalu, disclosed this at the NGFCP bidders’ conference organized the agency in Lagos.
According to Auwalu, the NGFCP was launched in 2016 and is designed as the strategy to implement the policy objectives of the Federal Government for the elimination of gas flares with potential enormous multiplier and development outcomes for Nigeria.
He added that the objective of NGFCP is to eliminate gas flaring through technically and commercially sustainable gas utilisation projects developed by competent third party investors who have been invited to participate in a competitive and transparent bid process.
He disclosed that the 200 bidders were drawn from a pool of 800 who had expressed interest to manage about 178 gas flare sites.
The DPR helmsman stated further that in selecting the 200 bidders, careful consideration was given to their capacity, quality of service, track record and ability to deliver on set targets.
He assured that there are other flare sites which are coming on board, saying this was just the first stage of the bidding round to be followed by others in due course.
Auwalu saihd Nigeria is the first country to have taken the bull by the horn through its NGFCP initiative aimed at putting an end to gas flaring, adding that the number of bidders attest to the fact that investors across the globe are interested in Nigeria.
SOURCE: newtelegraphng.com
