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  
4 
1. SCOPE 
These Guidelines are issued pursuant to Flare Gas (Prevention of Waste and Pollution) 
Regulations, 2018, and shall apply to Flare Payments for natural gas being flared (flared or 
vented) at Producers’ Production Facilities in Nigeria. 
2. OBJECTIVE  
The objective of these Guidelines is to define the accounting procedure for Flare 
Payments for the Producer at Production Facilities with respect to flared and/or Vented 
Gas. 
3. FLARE PAYMENT REGIME 
Flare Payments shall apply to any natural gas that is flared and/or vented at Production 
Facilities of the Producers. 
Paragraph 12 of the Flare Gas (Prevention of Waste and Pollution) Regulations, 2018, 
stipulates that Permit Holders shall not engage in Routine Flaring or venting of natural 
gas and Paragraph 13 stipulates the applicable Flare Payment regime to the Producers. 
4. FLARE PAYMENT AMOUNT ACCOUNTING PROCEDURES   
4.1 
Accounting Procedure during the Transition Period 
a. 
During the Transition Period referred to in Section 4.9 of the Guidelines for Flare Gas 
Measurement Data Management and Reporting Obligations 2018, the Accounted 
Flare Gas quantity will be used as the basis for calculating the Flare Payments. 
b. 
The Accounted Flare Gas quantities are calculated as follows:  
Accounted Flare Gas quantities = (A* B) - C- D - E - F - G, 
where: