Library / Applicable to all Oil & Gas Operators GUIDELINES FOR GRANT OF PERMIT TO ACCESS FLARE GAS Code: DPR Guide 0007 - 2020 Revision Date: 1st August 2020
Applicable to all Oil & Gas Operators GUIDELINES FOR GRANT OF PERMIT TO ACCESS FLARE GAS Code: DPR Guide 0007 - 2020 Revision Date: 1st August 2020
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Applicable to all Oil & Gas Operators GUIDELINES FOR GRANT OF PERMIT TO ACCESS FLARE GAS Code: DPR Guide 0007 - 2020 Revision Date: 1st August 2020 This is a property of the Department of Petroleum Resources. All rights reserved 15 2.7 Conditions Precedent to the Issuance of the Permit to Access Flare Gas a. Following the selection process, a Preferred Bidder shall fulfil the following conditions precedent prior to the grant of the Permit by the Minister: 1. Execution of a Milestone Development Agreement with the Federal Government of Nigeria, through which the Project(s) will be monitored and performance assured, within sixty (60) days of the date of award of Preferred Bidder status. 2. Execution of a Gas Sales Agreement with the Federal Government of Nigeria within sixty (60) days of the date of the award of Preferred Bidder status. 3. Execution of a Connection Agreement with the relevant Producer within sixty (60) days of the date of the award of Preferred Bidder status. 4. If applicable, execution of the Deliver or Pay Agreement with the relevant Producer within sixty (60) days of the date of the award of Preferred Bidder status. 5. Upon the execution of the Milestone Development Agreement, a Milestone Bond shall be posted to replace the Bid Bond. In the case of a Permit being granted for a Producer’s Approved Flare Out Project, a Milestone shall be posted without replacement of a Bid Bond. The Milestone Bond will be in an amount as prescribed in table 2 of Schedule C. 6. Payment of the prescribed Award Fee for Grant of Permit to Access Gas (refer to Schedule B) shall be made within sixty (60) days of the date of award of Preferred Bidder status.
CodesPDF20202020-0815