NUPRC declares profitable bidders for gasoline flare commercialisation programme

The Nigerian Upstream Petroleum Regulatory Fee (NUPRC) on Tuesday introduced the end result of the bidding train for the Nigerian gasoline flare commercialisation programme.

The Nigerian authorities launched the Nationwide Fuel Flare Commercialisation Programme in 2016 to contain third-party traders or off-takers in harnessing gasoline launched as a byproduct of oil manufacturing.

The programme was one of many authorities’s initiatives to drive the attainment of zero routine gasoline flaring by 2035 and web zero emissions by 2060 within the nation.

The federal government mentioned 226 firms submitted bids earlier than the venture was suspended on the onset of the COVID-19 pandemic in 2020.

Final October, the federal government introduced the relaunch of the programme and opened bids.

In an announcement signed by its administration on Tuesday, the NUPRC introduced the issuance of letters of award to 42 firms/entities deemed profitable within the keenly contested bid for 49 flare websites put ahead in the course of the 2022 Nigerian Fuel Flare Commercialisation Programme (NGFCP) public sale course of.

It mentioned thirty-eight of the businesses have been awarded forty flare websites for standalone single flare web site growth, whereas 4 are awarded 9 websites to be developed as clusters.

“Reserve bidders’ standing has additionally been accorded to some firms for the corresponding flare websites in case the popular bidders fail to satisfy the phrases and circumstances stipulated within the RFP,” the fee mentioned.

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The fee indicated that award letters are already being transmitted to the respective profitable entities via the suitable channels.

In furtherance of its mandate in Part 7 (e) and Part 105 (2) of the Petroleum Trade Act (PIA), 2021, the assertion mentioned, the fee, within the third quarter of 2022, restructured the NGFCP and re-launched the programme to align with the provisions of the PIA, in addition to replicate prevailing financial and operational realities.

The Fee famous that the numerous success recorded within the NGFCP bid course of was resulting from a collection of targeted engagements with related stakeholders together with home traders, worldwide growth businesses, oil and gasoline producers, know-how suppliers and monetary establishments in the course of the intervening months.

It mentioned the engagements by the Fee have been to galvanise and maintain curiosity within the programme, appeal to investments and stimulate participation by native and international entities.

“In response to the Request for Qualification (RFQ) issued within the fourth quarter of 2022, 300 firms/entities indicated curiosity in both revalidating their prequalification standing as current contributors or submitting a Assertion of Qualification (SOQ) as new contributors,” it mentioned.

Following the analysis of SOQs, the fee mentioned a complete of 100 and thirty-nine (139) candidates have been deemed profitable and awarded the Certified Applicant standing.

Subsequently, it mentioned within the first quarter of 2023, the Fee issued the Request for Proposal (RFP) to allow certified candidates to place collectively their respective proposals for any of the forty-nine flare websites on supply.

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“Eighty-eight entities, comprising particular person firms and consortiums responded to the RFP and submitted a complete of 100 and thirty-seven (137) proposals, every containing technical, business and monetary documentation for a number of of the forty-nine (49) flare websites for both standalone or cluster growth.

“The proposals have been duly evaluated by the Fee and approval was secured to announce 38 firms/entities as profitable bidders for forty (40) websites for standalone single flare web site developments and 4 (4) firms/entities for 9 (9) websites to be developed as clusters,” it mentioned.

Some firms have been additionally awarded reserve bidders standing for the corresponding flare websites in case the popular bidders failed to satisfy the phrases and circumstances contained within the RFP.

At this stage, the assertion mentioned, the popular bidders would individually proceed to execute the suite of economic agreements with related events and impact fee of the prescribed award charges to allow the grant of Allow to Entry Flare Fuel by the fee.

“KPMG, a world community {of professional} companies, has been authorized to companion with the fee within the implementation of the award to make sure the profitable final result of the gasoline flare-out commercialization course of,” it mentioned.

The NUPRC urged profitable bidders to comply with via with the ultimate levels of the programme in the direction of turning into allow holders and executors of viable initiatives that will harness flared gasoline for worth creation.