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  
5 
A = Associated Gas Production quantities (metered or accounted)  
B = 1 - Shrinkage Factor 
C = Own Consumption quantities (metered or accounted) 
D = Gas for Existing Offtake Commitments (metered)  
E = Liquids extracted from Associated Gas (metered or accounted)  
F = Flare Gas delivered to Third Party Flare Commercialisation Projects (metered)  
G = Flare Gas delivered for Producer’s Approved Flare Out Project (metered).   
c. 
The Chargeable Flare Gas Quantity equals the Accounted Flare Gas quantity less 
Contracted Guaranteed Flare Gas Buyer Shortfall. 
d. 
The Flare Payment Amount is calculated by multiplying the Chargeable Flare Gas 
Quantity by the applicable Flare Payment rate in US$/Mscf. 
Table 1: Producer’s Flare Payment Amount Accounting Template (Transition Period) 
A 
B 
C 
D 
E 
F 
G 
OML/ 
Marginal 
Field ID 
Crude oil 
Production in 
the OML/ 
Marginal 
Field (Bopd) 
Accounted 
Flare Gas 
quantity 
(Mscf) 
Contracted 
Guaranteed 
Flare Gas 
Buyer 
Shortfall 
(Mscf) 
Chargeable 
Flare Gas 
quantity 
(Mscf) [C-D] 
Applicable Flare 
Payment rate 
[B ≥ 10,000 
bopd 
($2.00/Mscf)] 
 
[B < 10,000 
bopd 
($0.50/Mscf)] 
Flare 
Payment 
Amount due 
($US) 
[G = E * F] 
4.2 
Accounting Procedure Post Transition Period 
a. 
The Compounded Flare Gas Quantities is the sum of Flare Gas quantities and 
Unaccounted Flare Gas quantities.   
b. 
The Chargeable Flare Gas Quantity equals the Compounded Flare Gas Quantity less 
the Contracted Guaranteed Flare Gas Buyer Shortfall. 
c. 
The Flare Payment Amount is calculated by multiplying the Chargeable Flare Gas 
Quantity by the Applicable Flare Payment in US$/Mscf.