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  
9 
Compounded 
Flare 
Gas Quantities 
The sum of the Flare Gas quantities and Unaccounted Flare Gas 
quantities  
Condensate 
A low-density, high-API gravity liquid hydrocarbon phase that 
generally occurs in association with natural gas 
Contracted 
Guaranteed Flare Gas  
The Guaranteed Flare Gas quantity contracted by the Flare Gas 
Buyer under the Gas Sales Agreement, and for which Flare Gas 
Buyer has entered into a Deliver or Pay Agreement with the 
Producer 
Contracted 
Guaranteed Flare Gas 
Buyer Shortfall 
Contracted Guaranteed Flare Gas that was made available by the 
Producer under the Deliver or Pay Agreement which the Flare Gas 
Buyer did not take  
Crude Oil 
Oil in its natural state before it has been refined or treated 
(excluding water and other foreign substances) 
Deliver 
or 
Pay 
Agreement  
An agreement that the Producer may sign with the Flare Gas Buyer 
under which the Producer guarantees to supply an agreed quantity 
of gas to the Flare Gas Buyer 
Delivery Point 
Point within the Metering Station at which title of the Flare Gas 
passes from the Seller to the Flare Gas Buyer 
Department 
of 
Petroleum Resources 
(DPR) 
The Department of Petroleum Resources of the Federal Ministry of 
Petroleum Resources, or any successor entity that has statutory 
responsibility for ensuring compliance with petroleum laws, 
regulations and guidelines related to the oil and gas industry in 
Nigeria 
Existing 
Offtake 
Commitment  
Gas delivery commitment that the Producer has in place for the 
delivery of Associated Gas to a third party or a Producer Entity prior 
to the Regulations becoming effective