Nigeria on Wednesday announced that it will hold a bidding round for the licencing of subsurface hydrocarbon property for flared natural gas uptake in the Niger Delta Basin.
This type of bidding round, which has not taken place in eleven years, is open to Nigerian and non-Nigerian entities. Preferred bidders are, however, required to use a Nigerian partner or establish a Nigerian entity as a precondition of the bidding process.
“The auction presents a significant opportunity for domestic and international developers alike to participate in the largest market driven flare gas monetization program undertaken on this scale globally,” Nigerian Gas Flare Commercialization Program manager Justice O. Derefaka said in a statement.
Interested parties are encouraged to apply and register for the Request for Proposal package, after which submission statements will be asked for.
Bidders must have experience in project development, have proven technical and commercial capacity and proven technology that has been used in commercial applications.
Licence winners are expected to monetize flare site molecules and boost the country’s economy.
Successful bidders will be able to set the gas price, choose which flare sites to bid for and will be granted a title to the flare gas through a gas sales and supply agreement with the federal government of Nigeria.