REE Financial Performance

October 2013

Munich, Nov 15, 2013

EOR -

Enhanced Oil Recovery

Introduction to Linde’s EOR/EGR living examples

Alessandro GorlaGasWorld

Dubai, Dec 5th, 2013

The Linde Group: 2012 financial year

Financial highlights

The Linde Group

(in €

million) 2012 2011 2010

Sales 15,280 13,787 12,868

Operating profit 3,530 3,210 2,925

Earnings after taxes on income 1,324 1,224 1,064

Number of employees 61,965 50,417 48,430

The Linde Group worldwide

Global presence in more than 100 countries

Build up

Plateau

Enhanced Recovery

Decline

Exploration

Appraisal

Development Production Decommissioning

Prod

uctio

n

Years

0 5 10 15 20 25

Primary recovery Secondary recovery Tertiary recovery(IOR/EOR)

Increase the bottomhole

pressure to initiate & improve production

Maintain reservoir pressure and displace oil toward the well-bore

Restore formation pressure and improve oil displacement or fluid flow

Purpose

Technology

Oil recovery(% of OOIP)

Artificial LiftFracturingFlow optimization

Gas re-injectionWater flooding

Miscible / Immiscible injectionThermal recoveryChemical floodingMicrobial

10-15% 10-30% 10-40%

Lifetime of an oil field

Evolution of daily production trends

NC: Not critical, underlined: mean/averageSource: EOR screening criteria revisited, J. Taber et al, SPE Reservoir Engg, Aug 1997

Applicability & Economics to be individually determined for specific oilfield

General Criteria for EOR Technologies

EOR Methods

Gas cap displacement• N2 to replace gas cap of reservoir• Reservoir pressure is maintained

Pressure Maintenance• N2 injected into oil/condensate

bearing stratum at high pressure• Pushes the oil towards production

well

Miscible displacement of oil• N2 forms a miscible zone• Light HCs

form a mixture with N2 which dissolves in the oil

EOR/EGR with Nitrogen/CO2

Nitrogen EOR at Cantarell

DOS BOCASDOS BOCASESCALA GRAFICAESCALA GRAFICA

KAXKAX--11UECHUECH

KABKAB--101101

SINANSINAN101A101A1A1A

YUMYUM--22401401

MAYMAY--11

MISONMISON--11

KIXKIX--11KIXKIX--22

YAXCHEYAXCHE--11

00 30 Km30 Km

CIUDAD DELCIUDAD DELCARMEN CARMEN

OCHOCH POLPOLBATABBATAB

TOLOCTOLOCCAANCAAN

CHUCCHUC

200 m.200 m.

100 m.100 m.

50 m.50 m.

25 m.25 m.

IXTALIXTAL

MALOOBMALOOB--103103

ZAAPZAAP--11KUKU

LUMLUM--11BACABBACAB

IXTOCIXTOC--11TARATUNICHTARATUNICH

301301201201

10110111

ABKATUNABKATUN

EKEKBALAMBALAM

FRONTERAFRONTERA

TAKINTAKIN

22--BB

620620500500 540540 580580460460

21302130

21702170

20902090

20502050

75 km75 km

KutzKutzAkalAkalNohochNohochChacChacCANTARELLCANTARELL

Discovered in 1978, owner is Mexico‘s NOC Pemex, operated by PEP since 1979

Offshore GOM, water depth 35 to 50 meters

Sixth largest field

globally with 35 bn bbl OOIP

Largest reservoir in Mexico (25 % of Mexico‘s reserves)

Until 2007 second highest production globally after Ghawar, Saudi Arabia

KMZKMZ

Mexico

Sources: OGJ, Mar. 12, 2001; SPE 97385, OTC 13177, OTC 13178 8

Cantarell

Oil Field at a glance

3200 m

2700 m

2150 m

North South

Sources: OTC 13175, OTC 13177, OTC 131789

Status in year 1996 5 bn bbl produced (~14% of OOIP)

Reservoir pressure declined by 60% Productivity of some wells decreased by 75% Impeding water: OWC had risen by ~500 m Significant need for gas lift and well drilling

Technical Solution: Pressure Maintenance High permeability

> 900 m thick reservoir section 19-22° API, secondary gas cap -> Efficient gravity-drainage recovery mechanism

Objectives Increase Oil production rates

Increase ultimate reserves Stop water encroaching, especially into the North part! Increase associated gas available for sales

15 Years Plateau @ ~1 Mio bbl/d

Status in 1996 –

Call for action

Contract awarded in October 1997

-

Lowest CAPEX

-

highest energy efficiency, lowest OPEX

Project finance team established Nov 1997 under lead of BOC

Project financing closed Aug 1999

CAPEX investment of US $1,000 Million

Project scope (see next 2 slides)

Site construction began in June 1998

Production start June 2000

-

Module #1 June 2000

-

Full plant by December 2000

-

Four months ahead of contractual schedule

30%

10%

20%

10%

30%

Bidding

Consortium

Current

Shareholders

35%

65%

Sources: Linde, OTC 10864 10

CNC –

Compañía de Nitrógeno

de Cantarell

Self sustaining facility in remote location with only

NG as feedstock

Plant cooling duty 2,800 MMbtu/hr:open water cycle recycling sea water, combined with closed sweet water cycle

Total horsepower for air and N2 compression: 500,000 hp Fresh water supply by condensation

Associated gas supplied by Pemex used in gas turbines

5 x Air Separation Plants (ASU’S) & 5 x CC Power Generation PlantsEach train provides 300 MMscfd

high purity N2

(<10 ppm

O2

) at 130 bar

11

Air Separation Units

Power blocks

Sea water cooling

H2

O treatment

NG and N2

pipelines

Total Capacity: 1.5 bn

scfd

of Nitrogen

Surface facilities: Nitrogen Production Plant

Atasta

Nohoch-A

Akal-C

12” Natural Gas36” Nitrogen High pressure to Platform36” Nitrogen High pressure to Atasta

6.9 Km.6.9 Km.

95 Km.95 Km.

15 Km.15 Km.

48” Sea Water Intake Sump42” Sea Water to Nitrogen Plant36” Return to Sea of water

Nitrogen Plant

95 km offshore pipeline operated by Linde

15 km onshore pipeline

operated by Linde

7 km onshore pipeline

operated by Linde

Secondary Nitrogen Delivery Point

Source: CNC 12

M I O C E N O

B R K S B R K S

N M M

50 mts.

POZO CI-8303/09/00TP: 9 5/8”A.D: 8 1/2”PT: 1720 mts.

GAS CAPPOZO CI-4919/07/00TP: 7 5/8”A.D: 6 1/2”PT: 1557 mts.

POZO CI-8503/06/00TP: 7 5/8”A.D: 6 1/2”PT: 1560 mts.

POZO CI-4716/05/00TP: 7 5/8”A.D: 6 1/2”PT: 1515 mts.

POZO CI-6705/11/00TP: 9 5/8”A.D: 8 1/2”PT: 1455 mts.

POZO CI-8715/06/00TP: 7 5/8”A.D: 6 1/2”PT: 1480 mts.

POZO CI-69

1000 mts.

100 mts.

05/07/00TP: 9 5/8”A.D: 8 1/2”PT: 1425 mts.

Akal CI

Akal CI –

The Nitrogen Delivery Point Receives N2 through two 36”

pipelines delivering 750 MMSCFD each

Primary offshore delivery point : AKAL CI

Secondary delivery at point: Atasta

compressor station, then Nohoch-A and Akal C1

Akal CI

EOR supply scheme

Nitrogen EGR at Mirfa

• ADNOC/Linde

JV

• 2 Air separation trains

• Nitrogen Capacity -

600 mmscfd

• Nitrogen Purity -

< 10 ppm

O2

• Mirfa

-

Habshan

pipeline –

43 Km

• Delivery pressure –

up to 62 bar

Mirfa

–

Habshan

EGR project overview

Mirfa

–

Habshan

supply scheme

• Among world's largest motors• MAC –

60MW

• N2

compressor –

40MW

• Transportation • Cold boxes (15x9.5x15m)

• N2

compressor skids (430 tons)

• 15 million man-hrs. zero LTI

• 3500 personnel at site –

4 contractors

• Contractors prior HSE performance

Project Execution Challenges

Questions?