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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Table 1: Bid Bond Table 
Project Type 
Power 
Generation 
CNG 
LNG 
Methanol Gas-to-
Liquids 
Pipeline Other 
A. Capex (US$ 
per Mscf/d) 
8,000 
3,000 
8,500 
7,000 
11,500 
3,750 
6,500 
B. Bid Bond 
Percentage (%) 
1% 
C. Maximum 
proposed daily 
Contracted Flare 
Gas Quantity 
(Mscf/d) 
Taken from Bidder’s Proposal 
D. Maximum Bid 
Bond amount 
(US$) 
1,000,000 
E. Bid Bond 
Amount (US$) 
E = Minimum (A*B*C, D) rounded to the nearest US$5,000 
2. 
Milestone Bond  
The Milestone Bond shall be 2% of the estimated Project capex subject to a maximum of 
US$2,000,000. The Project capex is calculated by multiplying the maximum daily 
Contracted Flare Gas Quantity in Mscf/d by the unit capex in US$ per Mscf/d of the 
selected Flare Gas-to-Market Technology as specified in the table below.