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.

Page 24 of 29

Open the PDF at page 24

NIGERIAN UPSTREAM 
PETROLEUM REGULATORY 
COMMISSION 
Applicable to all Oil 
& Gas Operators 
GUIDELINES 
FOR THE DETERMINATION 
& MEASUREMENT 
OF | Code: Version 1 
HYDROCARBON 
LIQUIDS CONTENT 
IN NON-ASSOCIATED GAS | 
Revision Date: April 2024 
(NAG) FIELDS 
heavier 
hydrocarbons 
or 
impurities. 
Wet 
gas 
requires 
additional 
processing to separate and recover the liquids for further use or sale. 
2. 
NON-ASSOCIATED GAS (NAG) ASSET HOLDER OBLIGATIONS 
A licensee or lessee producing NAG shall - 
(i) 
within 6 months of the coming into effect of these Guidelines, provide 
the Commission with an inventory of all NAG fields or reservoirs in 
its 
license or lease area. 
(ii) 
within 18 months of the coming into effect of these Guidelines conduct 
or validate assay of the natural gas from its NAG fields or reservoirs; and 
(iii) 
if applicable, carryout a baseline audit of any receiving facility where 
gas from 
a green NAG field 
or reservoir 
is to be produced into for 
treatment, 
conditioning, 
or 
processing 
to 
establish 
the 
reference 
hydrocarbon liquids yields from the facility, prior to the introduction of 
the new NAG volumes to a 
facility. 
3. 
DETERMINATION OF HYDROCARBON LIQUIDS 
For the purpose of these guidelines, Hydrocarbon Liquids Content (HLC) shall be 
determined as the aggregate volumes of Natural Gas Liquids and condensates 
from: 
(i) 
Field condensates and hydrocarbon liquids drop out at the production field 
separator and or compression facility upstream of the gas conditioning or 
processing plant. 
(ij) 
Natural gas liquids (NGLs) consisting of ethane, propane, butane, pentane, 
and plant condensates derived downstream of a conditioning or processing 
facility as products of separation or fractionation therefrom. (See Appendix 
Fig.1) 
4. 
MEASUREMENT TECHNIQUES & STANDARDS FOR THE DETERMINATION OF 
HYDRCARBON LIQUIDS FROM A NAG FIELD 
4.1.Measurement Methods 
For the purposes of these incentives, the measurement of all natural gas liquids shall 
be by dynamic method of measurement except where static method of 
measurement is approved by the Commission. 
This is a property of the Nigerian Upstream Petroleum Regulatory Commission. All rights reserved