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Library / Applicable to all Oil & Gas Operators GUIDELINES FOR FLARE PAYMENTS Code: DPR Guide 0006 - 2020 Revision Date: 1st August 2020

Applicable to all Oil & Gas Operators GUIDELINES FOR FLARE PAYMENTS Code: DPR Guide 0006 - 2020 Revision Date: 1st August 2020

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Applicable to all Oil & Gas Operators  
GUIDELINES FOR FLARE PAYMENTS 
Code: DPR Guide 0006 - 2020 
 
Revision Date: 1st August 2020 
 
 
This is a property of the Department of Petroleum Resources. All rights reserved  
10 
Flare Gas 
Any natural gas produced in association with crude oil by a 
Producer and finally diverted toward a Flare Site by the Producer 
with the intent that the natural gas will be flared, including any such 
natural gas from a Greenfield Project 
Flare Gas Buyer 
Preferred Bidder which has, as Flare Gas Buyer, executed the Final 
Commercial Agreements 
Flare Gas Connection 
Point 
The point where the Gas Connection Assets tie into the facilities of 
the Producer 
Flare Gas Flared  
Flare Gas volumes flared at a Flare Stack 
Flare Gas Header 
The gas facility or facilities within the Producer`s existing 
infrastructure from where Associated Gas is directed to the Flare 
Stack (Flare Gas Connection Point may or may not be at the Flare 
Gas Header) 
Flare Gas (Prevention 
of 
Waste 
and 
Pollution) Regulations 
2018 
The Regulations by this name that were signed into effect on the 5th 
of July 2018, also referred to as the Regulations in the Guidelines 
Flare 
Gas-to-Market 
Product 
A product delivered by the Project to an Off-Taker after having 
been processed and/or transported by the Flare Gas-to-Market 
Technology 
Flare Payment  
Payment made by the Producer in US Dollars for each Mscf of Flare 
Gas flared or vented as defined in the Regulations   
Flare Payment Amount The payment made by the Producer to the Federation Account of 
the Federal Government of Nigeria as stipulated in the Flare Gas 
(Prevention of Waste and Pollution) Regulation 2018 based on the 
Flare Payment and the Chargeable Flare Gas quantity