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 
GUIDELINES 
FOR THE 
DETERMINATION 
& MEASUREMENT 
OF | Code: Version 1 
HYDROCARBON 
LIQUIDS CONTENT 
IN NON-ASSOCIATED GAS | 
Revision Date: April 2024 
(NAG) FIELDS 
4.2.Determination of Measuring Points for NGL 
(i) 
For the purposes of these incentives, the Commission shall determine the 
measurement points for natural gas liquids as follows: 
(a) inlet of a separation facility (which may include, a production separator, 
gas treatment, conditioning, or processing facilities); downstream of the 
well head; and 
(b) downstream and the exit of a separation facility (which may include, a 
production separator, gas treatment, conditioning, or processing facilities); 
for 
the determination 
of the 
natural 
gas 
liquids 
(NGLs) 
and 
the 
dry 
marketable natural gas(C1+). 
(ii) Provided that the Commission may 
at 
its discretion determine any other 
locations that the measurements may be done 
4.3.Gas Composition Determination 
(i) 
To benefit from these incentives, the licensee or lessee shall be required to carry 
out a compositional gas analysis at a point inlet of 
a gas separation facility 
such as a gas treatment, conditioning, or processing plant and at the exit of a 
gas treatment, conditioning, or processing plant. 
(ii) The 
methods, 
techniques 
and 
procedure 
for 
the 
determination 
of 
the 
composition of natural gas shall be as prescribed by the Commission from time 
to time and shall include as a minimum: 
(a) BTU content 
(6) The composition 
of the 
gas 
includes methane, 
ethane, 
propane, 
butane, pentane, pentane plus and natural gas liquids. 
(c) The estimates of the amounts in volumes of each of the components of 
natural 
gas may 
be derived 
from 
processing 
in 
a 
gas treatment, 
conditioning, or processing plant. 
(d) The composition 
of impurities 
in the gas, including carbon dioxide, 
nitrogen oxide, hydrogen sulfide, inert gases, water, and any other 
substances in the gas. 
4.4.Measurement of Natural Gas Liquids (NGLs) 
(i) 
The Natural Gas Liquids (NGLs) or hydrocarbon liquids content of natural gas 
from all green NAG fields or reservoirs shall be measured post separation. 
(ii) 
For the purposes of sub-paragraph 
i above, production separators shall be 
installed for wet gas assets to capture the field condensates and the following 
shall be measured with separate measurement meters; 
(a) the marketable natural gas (C1+) also called the dry sales gas stream 
and may constitute methane, ethane and sometimes propane and 
butanes; and 
This is a property of the Nigerian Upstream Petroleum Regulatory Commission. All rights reserved