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

Page 17 of 19

Open the PDF at page 17

 
 
 
 
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  
17 
Milestone Bond 
A performance bond posted by the Flare Gas Buyer as defined in the 
Milestone Development Agreement 
Milestone 
Development 
Agreement (MDA) 
Agreement signed between the Seller and the Flare Gas Buyer or the 
Producer Entity (in case of a Producer’s Approved Flare Out Project) by 
means of which the Flare Gas Buyer or the Producer Entity (as applicable) 
commits to the development of the Project according to agreed 
milestones  
Minister 
The Minister of Petroleum Resources 
Mscf 
A thousand standard cubic feet 
Nigeria 
The Federal Republic of Nigeria 
Off-Taker 
Entity that receives or purchases the FG2M-P from a Permit Holder 
Oil Field 
A geographic area under which an oil reservoir lies, and/or a tract of land 
used for extracting petroleum, otherwise known as Crude Oil, from the 
ground 
Oil Mining Lease 
A lease granted by the Minister to a company incorporated in Nigeria, 
which allows such company to win, work, carry away, and dispose of oil 
Own Consumption  
Associated Gas quantity consumed by the Producer in the process of 
production of Crude Oil and/or Condensate (for power generation, 
heating, artificial lift, re-injection, etc.)  
PAFOP 
Producer Approved Flare-Out Project 
Performance Bond 
A payment security lodged by a Flare Gas Buyer as an obligation under 
the Gas Sales Agreement 
Permit 
Permit to Access Flare Gas 
Permit Holder 
A company that has, pursuant to the Regulations, been granted a Permit 
to Access Flare Gas by the Minister 
Permit to Access 
Flare Gas 
A permit granted to a Permit Holder by the Minister to take Flare Gas at 
a Flare Site or a set of Flare Sites on behalf of the Federal Government of 
Nigeria. This permit can be granted for either a Producer Entity carrying 
out a Producer’s Approved Flare Out Project or to a Preferred Bidder as