This post covers the procedures & requirements for obtaining DPR Permit for Gas Field Development Programme (GFDP), Permit to Drill Gas Well, Permit for Gas Well Initial Completion, Permit for Gas Well Work-Over and Re-Entry, Permit for re-completions, Permit for abandonment, Temporary Gas Flaring Permit/Waiver.
Key things to know while planning a Gas Exploration & Development business in Nigeria.
Local Content:
Company shall demonstrate sufficient commitment to ensuring that all aspects of the project that can be competently executed locally are handled by Nigerian contractors. Click to read Local Content Registration and Local Content Acts.
Read: DPR Permit (OGISP) Cost & Requirements
Nigerianisation:
Project Management structure shall be composed in a manner that shall reflect the indigenization policy of the government.
The Department of Petroleum Resources shall attach relevant personnel to participate in all the different phases of the project development.
Zero-Flare compliance:
All project development programs shall be established with an objective amongst others of complying with the directive of the government, on the elimination of routine operational flaring of associated gas by 1st of January 2008.
Green House Gases
The use of green house gases- Chloro-Flouro Carbon (CFCs) e.g. Helon in fire fighting systems is prohibited in line with DPR environmental guideline and standards for the Petroleum Industry.
Use of Chemicals
The use of chemicals for oil and gas production operations shall comply fully with the requirements of the national environmental guidelines and standards for the petroleum industry as issued by the Department.
Handling of Hazardous Materials
The use and handling of hazardous materials for oil and gas production operations shall comply fully with the requirement of the national environmental guidelines and standards for the petroleum industry as issued by the Department Material Safety Data Sheets (MSDS) shall be compiled and approval obtained from the Department before use.
Read: Nigerian Local Content (NOGIC JQS) Registration
Other related drilling operations in Nigeria that can be conducted prior to approval by Department of Petroleum Resources (DPR):
- Well plug back & abandonment
- Well side track
- Well deepening
- Well change of target
- Well re-entry after temporary suspension of activities
- Casing recovery from a well.
- Zone switch.
The proposed Gas Field Development Programme (GFDP) must be submitted at least thirty working days before the commencement of any part of it and shall be in accordance with Regulations 37 & 42 of the Petroleum (Drilling and Production) Regulations of 1969 and its amendments.
Read: NipeX Registration & Requirements
The Gas Field Development Programme DPR Permit shall contain but not limited to the following:
(1) A minimum of 3 wells must have been drilled and a field study carried out detailing the static and dynamic reservoir model.
(2) Concept study and reasons for choice of proposed development plan
(3) Seismic and Geologic Prognosis
(4) Field reserves and ultimate recovery.
(5) Structural Map of all gas bearing sands on a scale of 1:25,000
(6) Reservoir Geologic Modelling
(7) Reservoir Engineering Simulation Studies
(8) Well location optimization /depletion plan
(9) Well bore utility.
(10) The production profile and the anticipated drive mechanism.
(11) Gas Utilization Plan in line with Federal Government policy of zero flare
(12) Cost estimates of the development
(13) Surface facilities.
(14) HSE strategy/Case.
(15) Field Abandonment Plan
(16) Processing fee of N50, 000 only, payable to Fed. Gov’t of Nig. – DPR Fees Account.
Satisfactory development programmes would then be evaluated and approved. However, where strong objections exist, the company would be informed. Individual well location proposals still require to be approved on their merits. Also, approvals to drill do not necessarily imply that the target completion zones have been approved. Completions are separately considered for approval.
Read: Company/ Business Registration in Nigeria
DPR REQUIREMENTS FOR DRILL GAS WELL PERMIT
This permit is valid for six (6) months and must be revalidated if work does not commence. The application shall conform with Section 32 Petroleum (Drilling & Production) Regulation 1969 & Amendments and shall contain among others the followings:
- Well name and well engineering
- Surface and sub-surface coordinates
- Contractor, Rig name and validity.
- Location (OPL/OML) identification.
- Spud date
- Casing, cementing, mud and logging programmes
- Cost estimates
- Structural maps on a scale of 1:25,000
- Geological prognosis
- Pore pressure prediction study.
- Proposed depth or TD.
- Seismic sections/ maps in cases of exploration and appraisal wells.
- Fee of N5, 000 only, payable to Fed. Gov’t of Nigeria – DPR Fees Account.
DPR REQUIREMENTS FOR GAS WELL INITIAL COMPLETION PERMIT
All applications seeking a permit for initial completion should conform with Section 33 of Petroleum (Drilling & Production) Regulation 1969 & Amendments and shall routinely contain among others the following:
- The well must have been drilled as approved by DPR.
- Well name and number
- Name of Hoist and owner
- Proposed completion schematics, well clean-up & completion type.
- Final well drilling report
- Proposed completion intervals
- Cost estimates for the completion work
- Statutory Fees of N5,000
DPR REQUIREMENTS FOR GAS WELL WORK-OVER, RE-ENTRY & RE-COMPLETIONS PERMIT
Applications in respect of well work-over and or repairs shall conform with Sections 32 & 35 of the Petroleum (Drilling & Production) Regulation 1969 & Amendments and shall contain the following details:
- Name and number of well
- Name of Hoist and owner
- Reason for re-entry or work-over
- Detailed or sketched outline of job proposed
- Well history and well logs
- Drainage pattern of the relevant sands
- Current completion schematics
- Proposed completion schematics
- Remaining reserves of the sand completed in the well.
- Cost estimates of the work-over
- Statutory Fees of N5,000
Read: How to Obtain Oil & Gas Business Permits / Licenses
DPR REQUIREMENTS FOR GAS WELL ABANDONMENT PERMIT
This permit is valid for six (6) months and must be revalidated if work does not commence. The application shall conform with Section 32 Petroleum (Drilling & Production) Regulation 1969 & Amendments and shall contain among others the followings:
- Well name and well engineering
- Surface and sub-surface coordinates
- Contractor, Rig name and validity.
- Location (OPL/OML) identification.
- Spud date
- Casing, cementing, mud and logging programmes
- Cost estimates
- Structural maps on a scale of 1:25,000
- Geological prognosis
- Pore pressure prediction study.
- Proposed depth or TD.
- Seismic sections/ maps in cases of exploration and appraisal wells.
- Fee of N5, 000 only, payable to Fed. Gov’t of Nigeria – DPR Fees Account.
REQUIREMENTS FOR TEMPORARY GAS FLARING PERMIT/ WAIVER
The DPR permit for gas flaring waiver application should contain the following:
- Name of field and facility where flaring is expected.
- The reason and justification for the temporary gas flaring exercise.
- Actions/processes already put in place to reduce the flare volumes before seeking the permit/waiver.
- The duration over which gas will be flared and total volume of gas expected to be flared.
- Any other information/supporting facts to justify the application for flare permit/waiver.