Library / Applicable to all Oil & Gas Operators GUIDELINES FOR PRODUCERS ASSOCIATED GAS UTILISATION PROJECTS Code: DPR Guide 0008 - 2020 Revision Date: 1st August 2020

Applicable to all Oil & Gas Operators GUIDELINES FOR PRODUCERS ASSOCIATED GAS UTILISATION PROJECTS Code: DPR Guide 0008 - 2020 Revision Date: 1st August 2020

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Applicable to all Oil & Gas Operators  
GUIDELINES FOR PRODUCERS ASSOCIATED GAS UTILISATION PROJECTS 
Code: DPR Guide 0008 - 2020 
 
Revision Date: 1st August 2020 
 
 
This is a property of the Department of Petroleum Resources. All rights reserved  
11 
b. 
The price of gas for a buyer receiving Associated Gas from a Producer under an 
Existing Offtake Commitment is the price agreed upon by the Producer and the 
buyer. The price of this Associated Gas shall be communicated to the Department of 
Petroleum Resources by the Producer, and any revenues derived from the sale of this 
Associated Gas are subject to the same royalty rates as those in the associated Oil 
Mining Lease or Marginal Field. In the event that no price has been set by the 
Producer, it must do so and communicate the price to the Department of Petroleum 
Resources within 4 months after the effective date of these Guidelines. Should the 
Producer fail to communicate the price, the Department of Petroleum Resources will 
establish a Presumed Natural Gas Price over which royalties shall be paid. 
5.2 
Producer’s Associated Gas Utilisation Project for Commercialisation: 
a. 
These are projects that, prior to the effective date of the Regulation, had not reached 
the Commercial Operations Date but have committed to delivering natural gas or 
products derived from that natural gas to Producers, subsidiaries of Producers, or 
third parties for any use other than Own Consumption. 
b. 
Producers’ Associated Gas Utilisation Projects for Commercialisation are exempted 
from a Programme bid process and from paying to the Federal Government of Nigeria 
for the gas used as feedstock or fuel subject to the Producers’ Associated Gas 
Utilisation Projects for Commercialisation meeting the following conditions: 
1. These projects shall be part of a Field Development Plan approved by the 
Department of Petroleum Resources. 
2. The Producer should have concluded FEED and have achieved FID prior to the 
effective date of the Regulations. 
3. A Producer’s Associated Gas Utilisation Project for Commercialisation shall 
achieve a Commercial Operations Date prior to January 2020.