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  
7 
5.2 
Flare Payment Additional Considerations 
a. 
No Flare Payment Amounts shall become due in respect of an agreed volume of 
Flare Gas that the Producer is committed to deliver to the Permit Holder under a 
Deliver or Pay Agreement entered into with the Permit Holder as from the 
commencement of commercial operations of the Project, as stipulated in Paragraph 
13 (3) of the Regulations. 
b. 
The provision under Section 5.2 (a) above ceases upon expiration of the term of the 
Gas Sales Agreement signed with the Permit Holder for the applicable Project. 
6. NON-COMPLIANCE AND PENALTY 
6.1 
Non-Compliance 
The additional payment, referred to in Paragraph 21 of the Flare Gas (Prevention of 
Waste and Pollution) Regulations 2018, applies where a Producer fails to meet the 
obligations as stated in Paragraph 21 (1) of the Flare Gas (Prevention of Waste and 
Pollution) Regulations, 2018.  This includes where a Producer inhibits or disrupts the 
process of the Federal Government of Nigeria in granting Permits to Access Flare 
Gas or delivering natural gas under the Gas Sales Agreement as stipulated in 
Paragraph 21 (1) (c) and (d). 
6.2 
Late Payment 
Failure to remit the Flare Payment Amount by the Producer shall attract applicable 
sanctions as provided for in Section 40 of the First Schedule of the Petroleum Act 
1969.