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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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Condensate during normal oil production operations in the absence 
of sufficient facilities or amenable geology to re-inject the produced 
gas, utilise it on site, or dispatch it to a market.  Routine Flaring 
does not include safety flaring even when continuous. 
Seller 
The Federal Government of Nigeria, or an entity that is assigned or 
designed by the Federal Government of Nigeria with respect to the 
Gas Sales Agreement, and that shall serve as the Seller of the Flare 
Gas to a Flare Gas Buyer 
Shrinkage Factor 
0.30%, which is the estimated percentage of the Associated Gas 
Production quantity that, due to pressure and temperature 
variations prior to any metering downstream of the Crude Oil 
Separators, will transform from gas to liquid phase 
Third Party Flare Gas 
Commercialisation 
Project 
A Project awarded under any competitive bid process under the 
Programme conducted by the Federal Government of Nigeria to 
take Flare Gas on its behalf any Flare Site as set forth in the 
Regulations 
Transition Period 
Period during which the Producers and Processing Facility 
operators must install the metering system as laid out in the 
Guidelines for Flare Gas Measurement Data Management and 
Reporting Obligations 
Unaccounted Flare Gas   Flare Gas quantities that Producers cannot account for, calculated 
as (A*B) - C - D - E - F - G – H, where: 
A = Associated Gas Production quantities  
B = 1 - Shrinkage Factor 
C = Own Consumption quantities 
D = gas quantities delivered under Existing Offtake Commitments