QIT Flare Out RFI - 2020.12.23 Rev3

NNPC/MPN JV Qua Iboe Terminal Flare Out Project Information Memorandum
29 December, 2020
The Nigeria National Petroleum Company (NNPC) and Mobil Producing Nigeria (MPN) Joint Venture
(JV) own and operate the Qua Iboe Termihal (QIT), a crude oil terminal in Akwa Ibom State, Nigeria.
The terminal receives oil via pipeline from offshore crude production platforms and separates a
significant volume of gas (solution gas) from the oil in the QIT stabilization process. A portion of the
solution gas is consumed in the terminal as fuel, and the remainder of the gas is flared. The JV
desires to cease the flare by selling it to a 3rd Party as fuel or feedstock.
The JV is seeking indicative offers from multiple potential off-takers in order to select the best fitting
project for recommendation to JV management and approval by the Department of Petroleum
Resources (DPR). This confidential information memorandum is being provided to companies who
have expressed interest in developing and building a project to eliminate the QIT flare, and who
have executed a Non-Disclosure Agreement with MPN (as JV Operator). We are seeking a potential
counterparty who is both technically and financially capable of delivering a safe flare out project,
and is interested in prioritizing this project.
Information provided:
Aerial view of QIT
QIT
Power & Compression
Flare
Page 1 of 4
Flare Gas Composition:
QIT FLARE GAS ANALYSIS REPORT
WEEK 1 WEEK 2 WEEK 3 WEEK 4 WEEK 5 WEEK 6

Sampling Point: FLARE D/S KO DRUM
Sampling Press (psig): atm atm atm atm atm atm
Sampling Temp (oC): atm atm atm atm atm atm
Time of Sampling: 16.26HRS 15:05 HRS 13:42 HRS 13:56 HRS 14:03 HRS 14:20 HRS
Cylinder No: NA NA NA NA NA NA
Sample No 1 1 1 1 1 1
Sampling Date: 15th Oct. 19 22ND Oct.19 29TH Oct.19 6TH Nov. 19 13TH Nov.19 19TH Nov.19
COMPONENT MOL % MOL % MOL % MOL % MOL % MOL %
Nitrogen 0 0 0 0 0 0
Carbon Dioxide 1.651 1.725 1.788 1.501 1.354 1.539
Methane 43.192 42.228 40.836 44.95 41.772 39.62
Ethane 12.699 12.918 13.617 13.339 13.7 13.324
Propane 18.877 19.546 19.685 18.333 19.855 19.934
i-Butane 5.237 5.208 5.413 4.749 5.303 5.527
n-Butane 8.612 8.835 8.782 8.165 8.751 9.282
i-Pentane 2.965 3.056 3.06 2.771 2.944 3.259
n-Pentane 2.271 2.359 2.355 2.15 2.238 2.516
Hexanes 1.796 1.799 1.814 1.664 1.69 1.999
Heptanes 2.088 1.883 2.119 1.877 1.859 2.298
Octanes 0.426 0.307 0.38 0.354 0.367 0.48
Nonanes 0.161 0.112 0.126 0.127 0.142 0.182
Decanes 0.024 0.024 0.025 0.02 0.025 0.041
Undecanes 0 0 0 0 0 0
Dodecanes 0 0 0 0 0 0
Total 100.00 100.00 100.00 100.00 100.00 100.00
Mol. Weight 35.9943 36.0722 36.5893 34.935 36.036 37.4699
Gravity (air=1) 1.24204 1.2447 1.26257 1.20549 1.24348 1.29296
Mole % C7+ 2.7 2.326 2.65 2.379 2.393 3.001
Mole wt C7+ 104.470505 103.8387 103.954711 104.158326 104.456651 104.724821
(The flare gas composition pasted above is neither a minimum specification nor a maximum
specification. It is the actual compositional analysis received from sampling.)
Page 2 of 4
Gas Volume Forecast:
QIT Gas Forecast
CP20 Gas to be Sold or Flared
Proposed Timeline for Flare Project Consideration:
The JV proposed timeline for consideration of potential off-taker projects is as follows:
04 Jan. - Information Memorandum shared with parties who executed the NDA
18 Jan. – Interested companies express interest via submitting project proposals
31 Jan. – JV determines best fit and recommends project to JV mgmt. and DPR
Further information for project proposals:
 Flare out projects shall utilize the entire flare stream. The only gas remaining to flare is for
maintaining safety flares only.
 Neither volume nor composition guarantees are offered. Annual forecasts and updates will
be made available.
 The flare gas is associated gas separated from the crude oil arriving at QIT. The entirety of
the flare gas produced at QIT will be available.
 Since a portion of the solution gas volume is used as fuel by the terminal, projects interested
in off-taking all of the solution gas volume must return ample amount of lean pressurized
fuel gas for the terminal’s fuel needs. (Fuel demand forecast is represented by the blue line
in the QIT Gas Forecast graph above.)
 The flare gas stream is low pressure, rich gas separated from the crude streams at the QIT
separators/stabilizers.
 Term is up to 20 years.
 The JV will not provide CAPEX nor OPEX for the project.
 A project that provides CAPEX for the connections, piping, etc. inside the QIT fence (in order
to transport the gas within QIT to the custody transfer point at the fence) will be viewed
favorably.
 Experience operating within Nigeria will be viewed favorably.
Page 3 of 4
 Experience constructing gas facilities within Nigeria will be viewed favorably.
 Projects which have associated social benefits will be viewed favorably.
Interested parties are to provide detailed project proposal including project overview and details,
commercial structure, proposed commercial terms, finance plan, evidence of Nigeria operations,
proposed detailed timeline (including FEED, FID, permitting, financing milestones, construction,
commissioning, COD, etc.)
If you have questions or comments, please do not hesitate to contact Chris Parsons and Okey Osuji
via email at [email protected] and [email protected] . Thank you for your
consideration.
Please note that the NNPC/MPN JV does not have a current waiver excluding the QIT flare from the
DPR’s NGFCP basket. The JV is working to progress the elimination of the flare in support of the
objectives of the DPR and NGFCP, and we are hopeful that the DPR will consider the project which is
ultimately selected by the JV for a potential NGFCP basket waiver.
Receipt of this Information Memorandum does not guarantee any further agreements nor
arrangements, nor is this an offer nor promise to consummate a business transaction nor
partnership. Any contemplated agreements will not be effective until a GSA and all supporting
documents are dually executed by authorized representatives of both your company and MPN, and
all conditions precedent are fully satisfied.
Page 4 of 4

QIT Flare Out RFI - 2020.12.23 Rev3

Uploaded by

Copyright:

Available Formats

QIT Flare Out RFI - 2020.12.23 Rev3

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

QIT Flare Out RFI - 2020.12.23 Rev3

Uploaded by

Copyright:

Available Formats

NNPC/MPN JV Qua Iboe Terminal Flare Out Project Information Memorandum

Aerial view of QIT

Power & Compression

QIT FLARE GAS ANALYSIS REPORT

WEEK 1 WEEK 2 WEEK 3 WEEK 4 WEEK 5 WEEK 6

QIT Gas Forecast

CP20 Gas to be Sold or Flared

Proposed Timeline for Flare Project Consideration:

The JV proposed timeline for consideration of potential off-taker projects is as follows:

18 Jan. – Interested companies express interest via submitting project proposals

Further information for project proposals:

You might also like