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  
7 
5. 
Investment cost and proof of economic viability; 
6. 
A Project implementation schedule which shall indicate, among other things, 
that Commercial Operations Date will commence not later than 36 months 
after having been granted an Approved PAFOP Applicant status; 
7. 
A list of shareholders in the existing or proposed midstream company that will 
execute the PAFOP; 
8. 
Documentation that shows that the Project Flare Gas consumption volumes 
are within the Flare Gas Forecast Quantity and that the PAFOP does not reduce 
or affect any Flare Gas volume that is subject to a bid process being conducted 
by the Federal Government or that has been assigned to any other Permit 
Holder. 
e. 
The Department of Petroleum Resources shall review the data and documentation 
provided and, if additional information is required, shall request it from the Producer. 
f. 
If the information provided by the Producer satisfies the criteria established in 
Section 4.1 (d) of these Guidelines, the Department of Petroleum Resources shall 
notify the Producer that he has been granted an Approved PAFOP Applicant status. 
g. 
Following the process described above, an Approved PAFOP Applicant shall fulfil the 
following conditions precedent prior to the grant of Permit by the Minister of 
Petroleum Resources: 
1. 
Execution of a Milestone Development Agreement (MDA) with the Federal 
Government of Nigeria, through which the Permit Holder will be monitored, 
and performance assured, within sixty (60) days of the date of award of 
Approved PAFOP Applicant status. 
2. 
Execution of a Gas Sales Agreement with the Federal Government of Nigeria 
within sixty (60) days of the date of the award of Approved PAFOP Applicant 
status.