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
3EniNigeria Field Trip
! 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
4EniNigeria Field Trip
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
5EniNigeria Field Trip
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
6EniNigeria Field Trip
!! 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
7EniNigeria Field Trip
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 205 OPL 206OPL 204
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
8EniNigeria Field Trip
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%
9EniNigeria Field Trip
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)
10EniNigeria Field Trip
kboed NAOC AENR NAE
050
100150200250300350400450500
Operated production 100%
11EniNigeria Field Trip
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%
12EniNigeria Field Trip
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
13EniNigeria Field Trip
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
14EniNigeria Field Trip
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
15EniNigeria Field Trip
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$Million US$
16EniNigeria Field Trip
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 205 OPL 206OPL 204
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
17EniNigeria Field Trip
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
18EniNigeria Field Trip
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
19EniNigeria Field Trip
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
20EniNigeria Field Trip
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
21EniNigeria Field Trip
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
22EniNigeria Field Trip
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
23EniNigeria Field Trip
Social CommitmentSocial Commitment
24EniNigeria Field Trip
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
25EniNigeria Field Trip
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