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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  
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Site(s) is one of the proposals that make up the highest-ranking 
proposals 
Processing Facility 
Production Facility or any other facility where natural gas or Crude 
Oil is processed. Power plants are not considered to be processing 
facilities. 
Producer 
A holder of Oil Mining Lease or allottee of a Marginal Field or a 
contractor under a Production Sharing Contract 
Producer Entity 
A midstream entity incorporated in Nigeria that is not a Producer 
which, following the provisions of the Flare Gas (Prevention of 
Waste and Pollution) Regulations, 2018, and the Guidelines issued 
thereunder, can become a Flare Gas Buyer 
Producer 
Gas 
Connection Assets 
The pipeline, equipment, machinery, other assets or facilities 
including the Measuring Station designed, funded and built by the 
Permit Holder and used to transport Flare Gas from the Flare Gas 
Connection Point to the Delivery Point under the Connection 
Agreement.  Title, care and custody of these assets are transferred 
by the Permit Holder to the Producer on the Commercial 
Operations Date. 
Producer’s Approved 
Flare 
Out 
Project 
(PAFOP) 
As defined in the Regulations, a Flare Gas Commercialisation project 
intended to be developed by a Producer that is not already 
operating commercially and that meets the following criteria as 
validated and approved by the Department of Petroleum 
Resources: 
i. 
received all required permits / licenses necessary for its 
operation; 
ii. 
executed all material commercial agreements necessary for