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  
6 
 
Table 2: Producer’s Flare Payment Amount Accounting Template (Post Transition Period) 
A 
B 
C 
D 
E 
F 
G 
H 
OML / 
Marginal 
Field ID 
Crude Oil 
Production 
in the OML / 
Marginal 
Field (Bopd) 
Flare 
Gas 
quantity 
- 
metered 
(Mscf) 
Unaccount
ed Flare Gas 
quantities 
(Mscf) 
Contracted 
Guaranteed 
Flare Gas 
Buyer 
Shortfall 
(Mscf) 
Chargeable 
Flare Gas 
quantity 
(Mscf) [C+D-E] 
Applicable 
Flare Payment 
rate 
[B ≥ 10,000 
bopd 
($2.00/Mscf)], 
[B < 10,000 
bopd 
($0.50/Mscf)] 
Flare 
Payment 
Amount 
($US) 
[H = F * G] 
5. FLARE PAYMENT ADMINISTRATION 
5.1 
Flare Payment Procedure 
a. 
The Department of Petroleum Resources shall collate and reconcile reported 
monthly oil production figures in OMLs and Marginal fields.  
b. 
Producers must present the data in accordance with the Guidelines for Flare Gas 
Measurement Data Management and Reporting Obligations. 
c. 
An average monthly oil production, taking into consideration only days during which 
oil was produced, will be used to establish the applicable Flare Payment. 
d. 
The various elements that contribute to the determination of the Chargeable Flare 
Gas Quantity shall be validated by the Department of Petroleum Resources. 
e. 
The Flare Payment Amount shall be computed monthly as a product of the 
Chargeable Flare Gas Quantity in thousand standard cubic feet (Mscf) multiplied by 
the applicable Flare Payment rate. 
f. 
Flare Payment Amounts shall be paid by the Producer in accordance with the 
procedures for payment of royalties to the Federal Government of Nigeria, provided 
for in Section 3 of the Associated Gas Re-Injection Act 1979. 
g. 
Reporting shall be done in accordance with Paragraph 19 of the Flare Gas 
(Prevention of Waste and Pollution) Regulations 2018.