The role of independents in the Nigerian oil and gas industry Chairman Egbert Imomoh 22 October 2010
Agenda Background Independents in Nigeria today 4 Afren an independent E&P case study 9 The independent sector poised for growth 21 Conclusions 24 Slide 3 The role of independents in the Nigerian oil and gas industry…
Background Independents in Nigeria today Slide 4 The role of independents in the Nigerian oil and gas industry www.afren.com
The evolution of Nigerias upstream industry 1971 1990-1994 1955 Nigerian National 38 indigenous companies Mobil Oil Corporation starts Oil Company granted E&P licences 2000-2009 operations in Nigeria (NNOC) formed Government…
The corporate landscape…
What Independent E&Ps can contribute to Nigeria Innovative ideas Lower and fresh approach materiality thresholds Contribute to Focus and energy supply Solutions for (domestic & overlooked / International) fallow assets…
The challenges faced Opportunity constraints No. of blocks Blocks Awarded by region 40 - Sporadic licensing activity Deepwater 35 - Low liquidity in asset market 30 Offshore Onshore - Retention of assets by Majors 25 20 Access…
Afren an independent E&P case study Slide 9 The role of independents in the Nigerian oil and gas industry www.afren.com
Afren an established African independent E&P Established operating track record 27 assets acquired in 9 African countries Circa 20,000 boepd net WI production (all operated) 106 net mmboe material reserves and contingent resources…
Afren an established African independent E&P Sustained growth Accessing international capital markets Reserves USmm 120 1800 mmboe Total capital raised to date 100 1600 100% Ebok appraisal 80 success rate 60 Prospective upside…
Building a significant Nigerian portfolio through indigenous partnerships OPL 907/917 OPL 310 OML 26 Okoro Ofa Ebok Okwok OML 115 Slide 12 The role of independents in the Nigerian oil and gas industry…
Okoro Setu project - an established track record Q3 2008 reservoir model Partnered with indigenous company Amni 40,000 1.0 FOPR - Afren acts as Technical Services Provider 36,000 Observed Daily Rate STB/D FWCT 0.9 Watercut,…
Okoro Setu project a fast track development Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Agreement signed with partner AMNI Rig secured for development drilling Appraisal drilling RBL facility /…
Ebok/Okwok/OML 115 creating a new Nigerian production hub Partnered with indigenous company Oriental Energy Resources - Afren acts as Technical Services Provider Ebok & Okwok fields located on OML 67 offshore South East Nigeria -…
Ebok/Okwok/OML 115 creating a new Nigerian production hub FSO Moored within Ebok Central 70m of CWHP Wellhead Platform Ebok West Wellhead Platform 4 Gas line 8 Production line 6 Water injection ESP Power & control…
Building indigenous capacity First Hydrocarbon Nigeria Established in response to Nigerian governments policy of increasing indigenous participation in the upstream sector Vision to become a champion in the indigenous sector through…
FHN acquisition of OML 26 Acquisition by FHN of a 45% interest in OML 26 Two producing, three undeveloped fields and significant exploration upside Maximum investment of US 187.5 million acquisition cost and equity share of phased…
OML 26 Ogini and Isoko fields phased development plan Phase 1 Phase 2 Phase 3 Drill 6 producers + 1 Expand production capacity Further expand facilities water disposal well Drill 15 additional producers Drill 18 infill-wells…
The independent sector poised for growth Slide 21 The role of independents in the Nigerian oil and gas industry www.afren.com
A platform for sustainable growth The Government The Independent E&Ps Continued promotion of the indigenous and Commitment to achieving and maintaining independent sectors international industry best practices vital for…
The Opportunity Set Liquids Production (000p/d) 4000 Source: Wood Mackenzie Structural reform of the upstream industry 3500 Development of an indigenous E&P Nigeria shut-in production 3000 industry capacity building 2500…
Conclusions Slide 24 The role of independents in the Nigerian oil and gas industry www.afren.com
Conclusions Independent E&Ps have an increasingly important role to play in ensuring optimal development of resources - Evidenced by positive impact independent E&Ps have had in maturing basins globally Nigeria has a burgeoning…
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