The chief executive officer (CEO) of the National Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, said on Thursday that out of 300 applicants that bidded for Nigerian Gas Flare Commercialisation Programme (NGFCP) 2022, only 139 were successful.
Komolafe, who disclosed this at the “Bidders Conference & Investors Forum”, in Abuja, said the conference was organised to intimate all qualified applicants, partners, sponsors and technology providers on the structure of the “Request for Proposal (RFP)” and provide further guidance on upcoming programme of activities while listening and collating feedback from all participants towards optimising the RFP phase.
The executive chairman congratulated all qualified applicants on their successful performance during the Statement of Qualification (SOQ) phase of this bid process.
“It might interest you to note, that the programme received over three hundred (300) applications from interested applicants but only a hundred and thirty-nine (139) were adjudged qualified/successful following the evaluation exercise conducted in line with the RFQ published criteria,” Komolafe stated.
He told the qualified applicants, your success on the SOQ stage was only a start of the journey as the real deal is in making a robust and competitive proposal, with demonstrable evidence for capacity to deliver on the flare monetisation projects, in line with the terms of the RFP would be your desired destination.
“This is a very defining moment, in the history of Nigeria’s oil and gas industry and being a part of this journey is by no means a trifle task. This is especially so because the NGFCP checks the box in many fronts. Apart from forestalling the deleterious impacts of gas flaring on the environment, the Programme also ends the wanton wastage of our premium economic resource.
“In today’s carbon constrained world, where fossil fuel is becoming less and less popular, in view of issues of climate change, natural gas has assumed a stature of significant importance as the bridging fuel for many oil and gas producing nations. For us here in Nigeria, Gas has been adopted as our transition fuel to drive the industrialisation of the Nation’s economy in line with the expectations of the Decade of Gas initiatives launched by the Government.
“Additionally, the NGFCP initiative is also targeted at creating investment and employment opportunities and encouraging increased capital inflow to the Nigerian Oil and Gas sector. So indeed the value derivable is multifaceted and aligns with the focus areas of our sustainable development goals,” he said.
Komolafe stressed that the NGFCP 2022 is first among series of competitive auctions whereby flare gas that would otherwise have been directed to flare will be put on sale by the Commission to interested entities as prospective title holders of the flare gas.
He noted that prospective bidders are expected to submit bid proposals in line with the requirements and terms of the RFP, covering such areas as technical, commercial, financial, and other relevant information regarding the project that the Qualified Applicant intends to develop.
“Such projects may include a plan to use the gas as fuel or feedstock or both for products to be disposed of in either the domestic or international markets. All Proposals from Bidders will be judged strictly on their merits according to the criteria published in RFP document which has since been uploaded on the NGFCP portal.
“At this second phase of the Programme, tagged “Request for Proposal (RFP) Phase,” qualified applicants will have access to the data room for data prying and leasing, including suite of Commercial agreements, for the forty-eight (48) gas flare sites on offer in this NGFCP 2022.
“The precise flare sites, volumes, and compositions of gas offered will be accessed in the data room to be made available to qualified applicants via the NGFCP 2022 Portal upon payment of relevant fees as prescribed in the RFP.
“The data room sessions will be held virtually to provide flexibility and comfort to all participants.%
The executive officer reassured that the Commission shall ensure an open, transparent, competitive, and non-discriminatory bidding process in line with the Provisions of Section 74 of Petroleum Industry Act (PIA) 2021.
“The NGFCP 2022 is not prescriptive as regards the choice of technology, product output or destination, however, it is favourably disposed to Bidders who may consider clustering as this will indicate greater mop up of the flare gas by a proposal. In view of the dynamism of our industry, we shall continue to provide a predictable and enabling regulatory environment to Qualified Applicants in line with our technical and commercial statutory mandates with a view to optimizing the commercialisation of these flare gas resources.
“I encourage you to use the Q&A session to seek clarity on any issues relating to the RFP that may border you. Our Support Team are on hand to provide responses and answers to participants joining the discussion online. The NGFCP Management and Technical Team are also here to take your questions and comments, as these would be addressed and fed back where necessary to the RFP to enhance its robustness. So, your inputs and participation are very much welcome and appreciated.
“I am confident that this Conference would provide you with the needed clarity on greys areas, and new ideas to take on this investment opportunity. I also have the firm believe that the Forum would afford you the opportunity to network with other participant, cross fertilise ideas towards achieving a successful investment decisions,” Komolafe summed.
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