Library / Implementation Guidelines for the Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order, 2024.

Implementation Guidelines for the Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order, 2024.

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NIGERIAN UPSTREAM 
PETROLEUM REGULATORY 
COMMISSION 
Applicable to all Oil & Gas Operators 
1.1. 
GUIDELINES 
FOR THE DETERMINATION 
& MEASUREMENT 
OF | 
Code: Version 
1 
HYDROCARBON 
LIQUIDS CONTENT 
IN NON-ASSOCIATED GAS 
Revision Date: April 2024 
(NAG) FIELDS 
1. 
INTRODUCTION 
Background 
The level of conditioning and processing of raw natural gas depends upon 
multiple factors including natural gas inlet compositions, product and transport 
specifications, and subsequent further processing requirements. 
For example, 
if ethane market is available, a configuration requiring cryogenic temperatures 
for Natural Gas Liquids (NGL) extraction is implemented. However, if the desire 
is for the bulk liquids, simple Joule Thompson 
(JT) valve ssexpansions# may 
suffice. These situations would determine what measurement systems are put 
in place to meet the service solutions need. 
1.2. 
Purpose and Scope 
The purpose of these Guidelines is to provide the implementation framework 
for the Presidential Fiscal Incentives Directives No. 40 of 2024 (Presidential 
Directives No. 40) for unlocking investment in the gas sector through accurate 
determination of hydrocarbon liquids content from 
a Non-Associated Gas 
(NAG) field or reservoir. 
1.3. 
Application 
These Guidelines shall apply to all licensees and lessees producing NAG from 
green non-associated gas fields. 
1.4. 
Definition of Terms 
(i) 
Dry Marketable Natural Gas 
This 
is 
the 
dry sales gas comprising 
mainly 
of methane 
(C1), 
but 
sometimes ethane 
(C2) 
and may 
also contain 
C3 and 
C4. 
This 
is 
measured in Standard Cubic Feet (SCF). 
(ii) 
Field Condensates 
Condensate is a mixture of liquid hydrocarbons that are recovered as a 
byproduct 
of natural gas production. 
Field condensates specifically 
refer to the condensates that are produced in the field, typically at the 
wellhead or at initial production separation facilities and are often rich 
in light hydrocarbons such as pentane and hexane. 
This is a property 
of the Nigerian Upstream Petroleum Regulatory Commission. All rights reserved