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  
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Payable to a designated Federal Government of Nigeria account by a Preferred Bidder or 
a Producer Entity as a condition precedent to being granted a Permit. A Permit covers 
one or a set of Flare Sites contained within a Proposal for which Preferred Bidder status 
has been granted or Flare Site(s) that will supply natural gas for a Producer’s Approved 
Flare Out Project. The Award Fee for Grant of Permit to Access Flare Gas is based on a 
Project’s Take or Pay specified in the Gas Sales Agreement as set out below: 
1,000 – 5,000 Mscf/d  
US$5,000 
5,000 – 10,000 Mscf/d 
US$10,000 
10,000 – 15,000 Mscf/d 
US$15,000 
>15,000 Mscf/d 
 
US$20,000 
f. The Handling Fee payable by the Flare Gas Buyer to the Producer shall be based on 
the Contracted Flare Gas Quantity for each Flare Site and in accordance with the 
Connection Agreement. The applicable Handling Fee shall be computed as follows: 
1. For a maximum capacity throughput per the Gas Sales Agreement of less than or 
equal to 10,000 Mscf/d, the annual Handling Fee will be calculated as a fixed 
monthly fee of US$500 plus a monthly throughput capacity charge of US$100 per 
MMscf/d. 
2. For a maximum capacity throughput per the Gas Sales Agreement of greater 
than 10,000 Mscf/d, the annual Handling Fee will be calculated as a fixed monthly 
fee of US$500 plus a monthly throughput capacity charge of US$80 per MMscf/d.