Nigeria Field Trip - Eni: energy company | Eni...Nigeria Field Trip View of Nigerian flares as seen from the satellite An unusual brightness in the dark of the African continent Nigeria

Nigeria Field TripNigeria Field Trip

October, 2002October, 2002

Claudio DescalziSenior Vice President for Operations

Italy, Africa and Middle EastE&P Division

ClaudioClaudio DescalziDescalziSenior Vice President for OperationsSenior Vice President for Operations

Italy, Africa and Middle EastItaly, Africa and Middle EastE&P DivisionE&P Division

2EniNigeria Field Trip

WARRI

Rumuji

ABA

OML 60

OML61

OML 63

OML 62

FORCADOS

BRASS

FORCADOS

SPM 2

SPM 1

SPM 2

SPM 1

SAM ABRI

TAYLO R CR.

PORT HARCOURT

FPSO

OML 116 OML 119

ELEME

BONNY


! In 1999 the Country returned to democracy, after 15 years of military rule ! The main objective is to obtain international credibility to build a stronger

Country

! In 1999 the Country returned to democracy, after 15 years of military rule !! The main objective is to obtain international credibility to buiThe main objective is to obtain international credibility to build a stronger ld a stronger

CountryCountry

GENERAL DATA

Population: 120 million

GDP: 36.0 Billion US$

GDP per capita: 300 US$

GDP growth rate: 3%

External Debt 27 Billion US$

UPSTREAM SECTOR

Oil production: 2,1 M BOPD

Total Gas production: 0.84 M BOEPD

Oil & Cond. Reserves 2P: 30.0 B STB

Gas Reserves: 138.1 T SCF

Oil and Gas revenues represent 78% of

foreign exchange earning and 38% of GDP

The Central Bank of Nigeria, Annual Report 2001; IMF, Annual Report 2001; NNPC, Monthly Petroleum Information

Socio-Economic SituationYear 2001


Eni’s contribution to the Country’s great challenges

! Special attention to NIGER DELTA needs

" Health improvement

" Economic empowerment

" Educational programs

" Social Infrastructures

! Utilise gas resources currently flared

!! Special attention to NIGER DELTA needsSpecial attention to NIGER DELTA needs

"" Health improvement Health improvement

"" Economic empowermentEconomic empowerment

"" Educational programs Educational programs

"" Social InfrastructuresSocial Infrastructures

!! Utilise gas resources currently flaredUtilise gas resources currently flared


ENI in Nigeria

Nigerian Agip Oil Company Ltd.J.V. Concession Agreement

Nigerian Agip Exploration Ltd.Production Sharing Contract

Agip Energy & Natural Resources Ltd.Service Contract

G R O U P

G R O U P

G R O U P

Nigeria LNG LimitedDownstream Participations

G R O U P

Bonny Gas Transport LimitedShareholder Agreement


!! OMLsOMLs 60/61/62/63 NAOC JV (op.)60/61/62/63 NAOC JV (op.)

!! OML 116 OML 116 –– AgbaraAgbara fieldfield!! OML 119 OML 119 –– Okono/OkpohoOkono/Okpoho fieldsfields

SERVICESERVICEAGREEMENTAGREEMENT

CONCESSIONCONCESSIONAGREEMENTAGREEMENT !! OMLsOMLs SPDC JVSPDC JV

!! OPL 211OPL 211-- 316 (316 (AboAbo field: field: NAE Ltd.)NAE Ltd.)PRODUCTION PRODUCTION

SHARING SHARING AGREEMENTAGREEMENT

!! OPL 219 OPL 219 –– OML 118 (OML 118 (BongaBonga: : SnepcoSnepco op.)op.)!! OML 244OML 244!! OML 79 (OML 79 (EA fieldEA field –– SPDC op.)SPDC op.)

!! SOLE RISK (OML 71/72/74/77)SOLE RISK (OML 71/72/74/77)

Typology of Contracts


7

BLOCKS WITH

AGIP INTEREST

NAE JV (NAE op. 50,19% - 90%)

AENR op. (Service Contract)

SNEPCO JV (NAE 12,5%)

SPDC JV (NAOC 5%)

NAOC JV (NAOC op. 20%)

AGIP Concessions & participated blocks

OPL209

OPL212

OPL213

OPL214

OPL215

OPL216

OPL217

OPL219

OPL220

OPL222

OPL313

OPL312

OPL314 OPL

315

OPL210

OPL98

OML 67

OPL102

OPL100OPL 94OPL 90

OPL224

OML 70

OPL 99

OML68OPL

101

OPL 225

OPL 226

OML 84 OML 83OPL 472

OML 85

OPL218

OML87

OML 77 OPL 229

OML 74

OPL 467OPL 471 OML 86

OPL 456

OML 79

OPL227 OML

81

OPL 75OML89

OML91

OML 93

OML

OML

OML90

OPLOPL310

OPL309

OPL311

OPL302

OPL301 OPL

303OPL304

OPL305

OPL306

OPL 307 OPL 308OPL 474

OML 56OML 39


OPL 202 OPL 203

OML 98 OML 4 OML 5OPL 110OML 1OPL135

OML 96

OML 41

OML 57

OML 38

WARRIOML 34

OML 30OML 92

OML 40

OML 49

OML45

OML 43OML 44

OML 62

OML 35 OML 65

OML 31OML 46

OML 50

OML 59

OML32

OML36

OPL 201

OML 20

OPL 228

OML 29

OML 33

OML 54

OML 66

OML 23

OML 24

OML 25

OML 18

OML 28

OML 61OML 21

OML 58

OML 26

OML 27OML 16

OML 15

OML 22OML 17

OPL 447

OML7

OPL 907

OPL 905

OPL 902

OPL 901

OPL 208

OPL 207

OML 48

OML12

OML 11OML 13 OML

14

OPL452OPL

211

OPL223

OML 88

OPL 460

OML 72

OML 73

OPL316

OML 42

OML 53OPL74

ENUGU

CALABAR

ONITSHA

BENIN

OPL221

OML 63

OML 63

OML 37

64

OPL 118

OML 55

OML 55

OML 19

OML 52

OPL 472

OML 94

95

454

OPL 11397

OPL 453

OML 60

OPL 91

OPL211

OPL316

OPL 472OML 116

OML 119

OML118

OPL219

OML 77

OML 74

OPL 467

OML 79

OML81

OML 39

OML 4 OML 5OML 1

OML 41 OML 38

OML 34

OML 30

OML 40

OML45

OML 43OML 44

OML 35

OML 31OML 46

OML32

OML36

OML 20

OML 29

OML 33

OML 23

OML 25

OML 18

OML 28

OML 21

OML 26

OML 27

OML 22OML 17

OML7

OML 11

OML 13 OML14

OML 72

OML 42

OML 53

OML 55

OML 55

OML 62

OML 61

OML 63

OML 63

OML 60

PORT HARCOURT

OML

OPL244

OML 16

OML 15

OML 24 OML51

LAGOSEXPLORATION LEASES

Sq km

Operated: 6,411Non Operated: 6,433

EXPLORATION LEASES Sq km

Operated: 6,411Non Operated: 6,433

DEVELOPMENT LEASESSq km

Operated: 6,443

Non Operated: 32,955

DEVELOPMENT LEASESSq km

Operated: 6,443

Non Operated: 32,955


Eni’s history in Nigeria1962: AGIP STARTS EXPLORATION ACTIVITIES IN NIGERIA

1965-1967: DISCOVERY OF EBOCHA, MBEDE, KWALE, OKPAI , AKRI, OBIAFU AND OBRIKOM FIELDS

1973: JV WITH NIGERIAN GOVERNMENT (60% NNPC)

1973-1975: DISCOVERY OF OBAMA FIELD AND EBEGORO FIELD

1976: FIRST TO IMPLEMENT SOCIAL PROGRAMMES (ELECTRICITY TO HOST COMMUNITES).

1979: INCORPORATION OF AGIP ENERGY & NATURAL RESOURCES Ltd.

1985: NAOC IS THE FIRST OIL COMPANY TO START RE-INJECTING THE

PRODUCED GAS INTO OIL RESERVOIRS.

1989: AGIP ACQUIRES 5% OF SPDC JV, (NNPC 55%, SHELL 30% , ELF 10% , AGIP 5%) PRODUCING ABOUT 1 MILLION OF OIL BARRELS PER DAY

1989: THE NIGERIA LNG Ltd IS ESTABLISHED. PARTNERS : AGIP 10.4%, NNPC 49%, SHELL 25.6%, ELF 15%

1962: AGIP STARTS EXPLORATION ACTIVITIES IN NIGERIA

1965-1967: DISCOVERY OF EBOCHA, MBEDE, KWALE, OKPAI , AKRI, OBIAFU AND OBRIKOM FIELDS

1973: JV WITH NIGERIAN GOVERNMENT (60% NNPC)

1973-1975: DISCOVERY OF OBAMA FIELD AND EBEGORO FIELD

1976: FIRST TO IMPLEMENT SOCIAL PROGRAMMES (ELECTRICITY TO HOST COMMUNITES).

1979: INCORPORATION OF AGIP ENERGY & NATURAL RESOURCES Ltd.

1985: NAOC IS THE FIRST OIL COMPANY TO START RE-INJECTING THE

PRODUCED GAS INTO OIL RESERVOIRS.

1989: AGIP ACQUIRES 5% OF SPDC JV, (NNPC 55%, SHELL 30% , ELF 10% , AGIP 5%) PRODUCING ABOUT 1 MILLION OF OIL BARRELS PER DAY

1989: THE NIGERIA LNG Ltd IS ESTABLISHED. PARTNERS : AGIP 10.4%, NNPC 49%, SHELL 25.6%, ELF 15%


Eni’s history in Nigeria

1994: EXPANSION OF OB-OB PLANT TO RECOVER NGL THE NGL, AND FUEL GAS, ARE DELIVERED TO ELEME PETROCHEMICAL

1996: INCORPORATION OF NIGERIAN AGIP EXPLORATION (NAE), FOR THE ACTIVITIES IN DEEP WATERS (PRODUCTION SHARING CONTRACT)

1997: RENEWAL OF OMLs TILL YEAR 2027

1999: START-UP OF LNG PLANT IN BONNY (TRAINS 1-2) AND F.I.D. FOR TRAIN 3 (FORECAST START UP NOV. 2002)

2000: LAUNCH OF GAS MASTER PLAN PROJECTS WITH OBJECTIVE OF ZERO FLARING WITHIN 2004 TO CREATE VALUE FOR GAS RESOURCES

2001: FIRST OIL COMPANY TO SIGN A POWER PURCHASING AGREEMENT (PPA) WITH FEDERAL GOVERNMENT AND TO START THE PROJECT FOR IPP (INDEPENDENT POWER PLANT)

2002: N-LNG TRAINS 4-5 F.I.D. (FORECAST START UP Q2 2005)

1994: EXPANSION OF OB-OB PLANT TO RECOVER NGL THE NGL, AND FUEL GAS, ARE DELIVERED TO ELEME PETROCHEMICAL

1996: INCORPORATION OF NIGERIAN AGIP EXPLORATION (NAE), FOR THE ACTIVITIES IN DEEP WATERS (PRODUCTION SHARING CONTRACT)

1997: RENEWAL OF OMLs TILL YEAR 2027

1999: START-UP OF LNG PLANT IN BONNY (TRAINS 1-2) AND F.I.D. FOR TRAIN 3 (FORECAST START UP NOV. 2002)

2000: LAUNCH OF GAS MASTER PLAN PROJECTS WITH OBJECTIVE OF ZERO FLARING WITHIN 2004 TO CREATE VALUE FOR GAS RESOURCES

2001: FIRST OIL COMPANY TO SIGN A POWER PURCHASING AGREEMENT (PPA) WITH FEDERAL GOVERNMENT AND TO START THE PROJECT FOR IPP (INDEPENDENT POWER PLANT)

2002: N-LNG TRAINS 4-5 F.I.D. (FORECAST START UP Q2 2005)


kboed NAOC AENR NAE

050

100150200250300350400450500

Operated production 100%


Averaged daily operated production Year 2001

0

500

1.000

1.500

SHELL EXXON /MOBIL

CHEVRON Eni TotalFInaElf TEXACO

KBOP

D

oil gas

Eni

NNPC, Monthly Petroleum Information

75%

25%

26%

74%82%

18%

50%

50%

73%

27%

68%32%


Eni Equity Production

0

50

100

150

200

250

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

K B

OEP

D

OIL GAS


TOTAL = 2,0 B BOE

28%

72%GAS

OIL

79 %

21 %

Replacement ratio

1999 4.072000 2.032001 2.55

Equity Reserves (M BOE @ Dec. 2001)

700 1300P2 + P3P2 + P3P1P1


0

1

2

3

4

5

6

7

1996 1997 1998 1999 2000 2001 2002

Total Budget billion $

! Average budget 1996- 2002:$ 4.2 billion/year

! Budget Year 2002: 5.5 billion $ (50% capex for associated gasprojects)

funded by NNPC

NNPC JVs Budget contribution


Investments & Operating Costs - Eni share2001 & Four year plan 2002 - 2005

2003 2003 -- 2005200520012001 20022002

Capex DevelopmentCapex Development 292292 377377 661661Capex ExplorationCapex Exploration 3131 4949 9898

Total Capex Total Capex 322322 425425 759759

Operating Costs Operating Costs 7272 107107 434434

Million US$Million US$


16

OPL209

OPL212

OPL213

OPL214

OPL215

OPL216

OPL217

OPL219

OPL220

OPL222

OPL313

OPL312

OPL314 OPL

315

OPL210

OPL98

OML 67

OPL102

OPL100OPL 94OPL 90

OPL224

OML 70

OPL 99

OML68OPL

101

OPL 225

OPL 226

OML 84 OML 83

OML 85

OPL218

OML87

OML 77 OPL 229

OML 74

OPL 467OPL 471 OML 86

OPL 456

OML 79

OPL227

OML81

OML89

OML91

OML

OML

OPLOPL310

OPL309

OPL311

OPL302

OPL301 OPL

303OPL304

OPL305

OPL306

OPL 307 OPL 308

OML 92

OML 62OML 31

OML 46

OML 50

OML 59

OML32

OML36 OML 29

OML 33

OML 54

OML 66

OML 23

OML 24

OML 25

OML 18

OML 28

OML 58

OML 22OML 17

OPL 907

OPL 905

OPL 902

OPL 208

OPL 207

OML 48

OML12

OML 11OML 13 OML

14

OPL452

OPL211

OPL223

OML 88

OPL 460

OML 72

OML 73

OPL316

OPL74

ENUGU

CALABAR

OPL221

OML 63

OML 63

OML 37

OML 55

OML 55

OML 19

OML 52

OML 94

95

454

OPL 11397

OPL 453

OPL211

OPL316

OML 116

OML119NAE PSC (NAE op. 50,19% - 90%)

SNEPCO PSC (NAE 12,5%)

OML118

OPL219

OML 77

OML 74

OPL 467

OML 79

OML81

OML 31OML 46

OML32

OML36 OML 29

OML 33

OML 23

OML 25

OML 18

OML 28OML 22

OML 17

OML 11

OML 13 OML14

OML 72

OML 55

OML 55

OML 62

OML 63

OML 63

PORT HARCOURT

OPL244

OML 24OML51

BONGA

ABO

OKONO/OKPOHO

AENR (Service Contract)

OML 79

SPDCJV (NAOC 5%)

EA/EJA

OPL 75

OML 93OML90

OPL 474

OML 56

OML 39


OPL 202OPL 203

OML 98OML 4 OML 5OPL 110

OML 1

OPL135

OML 96

OML 41

OML 57

OML 38

WARRIOML 34

OML 30

OML 40

OML 49

OML45

OML 43OML 44

OML 35OML 65

OPL 201

OML 20

OPL 228

OML 61OML 21

OML 26

OML 27

OML 16

OML 15

OPL 447

OML7

OPL 901

OML 42

OML 53

ONITSHA

BENIN

64

OPL 118

OML 60

OML 39

OML 4 OML 5OML 1

OML 41 OML 38

OML 34

OML 30

OML 40

OML45

OML 43OML 44

OML 35

OML 20

OML 21

OML 26

OML 27

OML7

OML 42

OML 53OML 61

OML 60

OMLOML 16

OML 15

2° phase

AboN 2Abo North

Abo Central

Abo2

Abo4

Abo3

PRODUCTION WELLWATER INJ.N WELLGAS INJECTION WELL

ABO Project

Total Capex: 956 MUSDPeak Prod.: 103,000bopd(2005)*All figures in Eni equity

Offshore Developments in Nigeria Conventional &Offshore Developments in Nigeria Conventional & Deep WatersDeep Waters


View of Nigerian flares as seen from the satellite An unusual brightness in the dark of the African continent

Nigeria produces 2.1 M Nigeria produces 2.1 M BopdBopd of oil and 4,850 M of oil and 4,850 M ScfScf/day of associated gas./day of associated gas.

About 2500 M Scf/day is presently flared.Gas reserves of the country is estimated to be 138 Tcf

The government through fiscal incentives has opened new markets

In 1999 commenced the exportation of liquefied natural gas (N-LNG)

Zero flaring objective in 2008

Utilization of Associated Gas


The Nigerian gas flare torches

20002000

2004

85%70%

62%45%

<5%40%<5%

19851985

20082008

NAOC is implementing the Gas Master Plan to achieve the zero flaNAOC is implementing the Gas Master Plan to achieve the zero flaring ring by 2004; to be the first among the oil multinationals operating by 2004; to be the first among the oil multinationals operating in Nigeriain Nigeria

20042004

Utilization Associated Gas - Flaring down


P. HARCOURT

OBAMA

SBM 1 SBM 2

BRASS

OB/ OB

FORCADOS

BENIBOYE

CLOUGH CREEK

TEBIDABA

BONNY

AZUZUAMA

SPDC’s ROW (Nun river-Kolo creek-Rumuekpe)

OBITE

SOKU

Ubeta

IRRI/ISOKO

KWALEAKRI

EOC

OSHIE

IPP

OGBAINBIRI

SAMABRI / IDU

NAOC Land & Swamp Area Projects

LEGEND:

Raw GasGas Line to Bonny - GTS1 (owned by N-LNG)Oil line

Oil Terminal

LNG Terminal

Flow Station

Capex: 286 MUSDPeak Production: 35,000 boepd (2007)

* All figures in Eni equity


Nigeria - LNG Projects

Train 1 & 27.15 Bcm/y

3.7 Billion $

Train 33.7 Bcm/y

1.8 Billion $

Train 4 & 510.3 Bcm/y

2.9 Billion $

Train 6

A feasibility study for this is currently ongoing. The start-up is foreseen by 2006


BASE PROJECTTrains 1 & 2

BUYERS - QUANTITY (Bm3/y) - DESTINATION

ENEL 3.50 Montoir-FranceENAGAS 1.6 Huelva -SpainGAZ DE FRANCE 0.5 Montoir-FranceBOTAS 1.2 Marmara-TurkeyTRANSGAS 0.35 Huelva -Spain-----------

Total 7.15

EXPANSION PROJECTTrain 3

BUYERS - QUANTITY (Bm3/y) - DESTINATION

ENAGAS 2.7 Huelva -SpainTRANSGAS 1.0 Huelva -Spain------

Total 3.7

LNG PLUSBUYERS - QUANTITY (Bm3/y) - DESTINATION

Eni 1.5 PortugalIBERDROLA 1.5 SpainSHELL 1.5 USATRANSGAS 2.0 Portugal-----------

Total 6,5

Train 4 & 5Production: 10.3 Bcm/y

Quantity already sold

Trains 1, 2 & 3Production: 10.85 Bcm/y

3.8 Bcm/y of LNG balance already committed

(MOU)

Nigeria LNG - Marketing


Open Cycle Operations: Open Cycle Operations: EndEnd 20032003: : Gas Turbine Generators operation

Commercial Operations: Commercial Operations: MidMid 2004:2004: Full Plant Start- up

IPP project, Okpai 450 MWe Power Plant

Scope of the Project:Scope of the Project:Improve Nigeria Power Generation CapacityImprove Nigeria Power Generation Capacity

Reduce Gas FlaringReduce Gas Flaring


Social CommitmentSocial Commitment


More than 500 social projects for the host communities

0

20

40

60

80

100

120

140

160

88 89 90 91 92 93 94 95 96 97 98 99 00 01

n.

Social InfrastructuresHealthEnvironmental ProtectionEducation - Culture

Total number of neighbourCommunities: 250

Eni’s social commitment in Nigeria

344SOCIALINFRASTUCTURES

ENVIRONMENTALPROTECTION

EDUCATION -CULTURE

HEALTH

21

113

43


Eni’s main objectives in Nigeria

Increase of Hydrocarbons production (CAGR >10 %)

Development of gas resources throughout integrated projects upstream / downstream

Continuos improvement in Health, Safety and Environmental aspects

Enhancement of development programmes for Social Communities

Documents

Nigeria Field Trip - Eni: energy company | Eni...Nigeria Field Trip View of Nigerian flares as seen from the satellite An unusual brightness in the dark of the African continent Nigeria