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 2: Milestone 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. Milestone Bond 
Percentage (%) 
2% 
C. Maximum Daily 
Contracted Quantity 
(Mscf/d) 
Taken from Gas Sales Agreement 
D. Maximum Bid 
Bond amount (US$) 
2,000,000 
E. Bid Bond Amount 
(US$) 
E = Minimum (A*B*C, D) rounded to the nearest US$5000 
If the Contracted Flare Gas Quantity is used for more than one purpose, than the Bid 
Bond/Milestone Bond amount will be calculated based on the volume taken for each 
utilisation option (such as electricity generation, compressed natural gas, and liquefied 
natural gas). 
3. Performance Bond 
The Seller will require a Performance Bond from Flare Gas Buyer in advance to cover 
three (3) months’ gas delivery payments for the Take-or-Pay Flare Gas Quantity per the