MONIPULO OIL & GAS ROUNDTABLE

1. MONIPULO OIL & GAS ROUNDTABLE . POLICY & FIELD IMPLEMENTATION IDEAS THAT IS DEPLOYABLE TODAY TO OPTIMIZE NIGERIA’S OIL & GAS RESOURCES BY UBANI NKAGINIEME – Ph.D TOTALSUPPORT ENERGY GROUP

2. NATIONAL ENERGY DEFICIT PROFILE • Our national Energy Deficit is very obvious and alarming. • FUELS • We import over 80% of our liquid fuel needs • We export over 90% of our crude production • We flare ~ 2.3Billion scf/d of natural gas • POWER • We generate less than 20% of utility power required for domestic use

3. IDEA/OBJECTIVES IN BRIEF • APPROACH OPTIMUM CONVERSION/UTILIZATION • INCENTIVIZE VALUE-ADDITION THROUGHOUT OIL & GAS CHAIN • ENFORCE ENVIRONMENTAL COMPLIANCE • APPROACH ZERO-EFFLUENCE • APPROACH ZERO-FLARE • MEET AND/OR EXCEED KYOTO PROTOCOL • PROVIDE SUSTAINABLE COMMUNITY POWER & FUELS • EXPORT EXCESS POWER TO GRID • EXPORT LPG/PROPANE FUELS TO MARKETS • EXPORT LIQUID PETROLEUM PRODUCTS TO MARKETS • EXPORT CNG/LNG FUELS TO MARKETS • OPTIMIZE CRUDE EXPORT AFTER SATISFYING LOCAL DEMAND

4. IDEA/OBJECTIVES IN BRIEF • A MODULAR PLUG-N-PLAY SYSTEM ARCHITECTURE AS IN SCHEMATIC ON NEXT SLIDE, WILL ENABLE DELIVERY OF ABOVE STATED OBJECTIVES • AN EFFICIENT & DISCIPLINED IMPLEMENTATION OF OUR CONCEPTS WILL PRODUCE : • INTERDEPENDENCY • SUSTAINABILITY • WORLD-CLASS EFFICIENCIES

5. LPG/PROPANE STREAM POWER TO COMMUNITY & GRID GAS PROCESS PLANT CNG & LNG LEAN GAS ON-SHORE FIELD : IMPLEMENTATION ARCHITECTURE WET GAS STREAM EXPORT CRUDE STREAM FLOW STATION CRUDE STREAM FUEL-OIL STREAM FOR RE-INJECTION TO EXPORT CRUDE LINE MODULAR REFINERY PRODUCTS STREAM : PMS/KERO/DIESEL/FUEL-OIL

6. APPROACH OPTIMUM CONVERSION/UTILIZATION • BY CONVERTING/UTILIZATING A SIGNIFICANT PORTION OF THE FIELD’S PRODUCTION ON SITE, WE CAN APPROACH OUR GOAL ABOVE • NIGERIA’S CURRENT NATIONAL CONVERSION/UTILIZATION FOR OILFIELD FACILITIES IS TYPICALLY BELOW 15%

7. APPROACH ZERO-EFFLUENCE • “ZERO-EFFLUENCE” SHOULD BE AN INTEGRAL PART OF THE DESIGN OF ALL NEW & FUTURE INSTALLATIONS

8. APPROACH ZERO-FLARE • BELOW 5 SLIDES ARE PICTURES OF WHAT WE MUST NOTENCOURAGE BY DOING NOTHING

9. APPROACH ZERO-FLARE • Nigeria currently ranks #2 in the global list of “Worst-Emissions-Footprint” …. Only Siberia-Russia is worse.

10. NIGERIA EMISSIONS PROFILE : 2009-2012

11. RUSSIAN EMISSIONS PROFILE : 2009-2012 CDM = CLEAN DEVELOPMENT MECHANISM CNG = COMPRESSED NATURAL GAS LNG = LIQUIFIED NATURAL GAS GTM = GAS TRANSPORT MODULE AGG = ASSOCIATED GAS GATHERING F162007 = Red F141998 = Green F101992 = Blue Vectors drawn on gas flares. 3 of 4

12. AHIA FLOWSTATION(UMUDIOGA) - NPDC

13. EBOCHA FLOWSTATION - AGIP

14. WHAT WE WASTE !! • Nigeria flares about 2.1Billion scf of gas daily. This is equivalent to wasting over 6,500MW of electricity or fueling over 1,000,000 commercial vehicles daily. • At Flow-Station pricing … this represents an annual wastage of over $1.5Billion.

15. Some NoxEmissions Effects In Niger-Delta • Acid rain leading to degraded & disappearing farm/fishery/livestock yields • Polluted & noxious air leading to dramatic increase in cases of asthma, cancer, skin & respiratory diseases

16. OPPORTUNITIES!! • ABOVE “BAD NEWS” IRONICALLY ALSO PRESENTS GREAT POTENTIALS & TREMENDOUS OPPORTUNITIES

17. A BETTER OUTCOME IS POSSIBLE

18. It Must Be Clean The Capstone MicroTurbine approaches the performance of zero-emissions technologies, but at a fraction of the cost... KYOTO COMPLIANCE UTILITY TURBINE & SELECT GAS ENGINES LOW-NOX TURBINE PHOTO-VOLTAIC WIND TURBINE BRAND NEW DIESEL ENGINE CAPSTONE TURBINE FUEL CELLS Source: EPA Report AP-42: Compilation of Air Pollutant Emission Factors

19. A BETTER OUTCOME IS POSSIBLE

20. JENBACHER GAS GENS

21. EXPORT EXCESS POWER TO NEARBY GRID • ALL EXCESS POWER NOT CONSUMED BY THE COMMUNITY & FACILITY WILL BE EXPORTED TO NEARBY GRID AT AGREED COMMERCIAL TERMS

22. 18-25MW MOBILE POWER

23. TURBINE FARM

24. 5,000 GALLONS/DAY LNG PLANT

25. SMALL LNG PLANT

26. EXPORT LPG/PROPANE TO NEARBY MARKETS • ALL LPG & PROPANE STRIPPED FROM THE WET GAS STREAM WILL BE SOLD TO NEARBY DOMESTIC MARKETS

27. OPTIMIZE CRUDE EXPORT

28. EXPORT LIQUID PET PRODUCTS TO NEARBY MARKETS • ALL REFINED PETROLEUM PRODUCTS FROM THE MODULAR REFINERY WILL BE SOLD TO NEARBY DOMESTIC MARKETS

29. OPTIMIZE CRUDE EXPORT • THE RESIDUAL FUEL OIL FROM THE REFINING PROCESS WILL EITHER BE SOLD TO NEARBY INDUSTRIES, OR RE-INJECTED INTO THE EXPORT CRUDE STREAM. • HOWEVER NOTE THAT THE MODULAR REFINERY CAN BE DESIGNED TO HANDLE ENTIRE CRUDE PRODUCTION ….. THEREBY ELIMINATING THE NEED TO PRODUCE CRUDE INTO ANY CRUDE EXPORT LINE. • THIS WILL ALSO ELIMINATE CURRENTLY PREVALENT CRUDE THEFT, AND ADD SERIOUS LOCAL CONTENT IN THE ENTIRE PRODUCT CHAIN.

30. EXPORT CNG/LNG TO NEARBY MARKETS • ALL CNG & LNG PRODUCED FROM THE MODULAR CNG & LNG PLANTS WILL BE SOLD TO NEARBY DOMESTIC MARKETS

31. CUSTOM ATLAS-COPCO COMPRESSORS AT MOTHER STATION

32. GTM TRUCKS AT DUFIL DAUGHTER STATION

33. INSIDE A GTM TANK

35. PROVIDE SUSTAINABLE COMMUNITY POWER & MANAGEMENT • ALL OUR COMMUNITY POWER PROJECTS MUST PASS OUR SUSTAINABILTY TEST. • CASE-IN-POINT : WE IMPLEMENTED THE BONNY COMMUNITY POWER PROJECT ON BEHALF OF THE IOC GROUP IN BONNY. • THIS PROJECT INVOLVED SETTING UP A COMMUNITY UTILITIES BOARD WITH THE IOC REP AS ADVISOR & OBSERVER MEMBER. • THE COMMUNITY SET THE TARRIFF FOR POWER • THE COMMUNITY USES ALL REVENUE FROM COMMUNITY POWER TO DRIVE COMMUNITY PROJECTS & MICRO-CREDITS • THIS PROJECT HAS BEEN & CONTINUES TO BE A RESOUNDING SUCCESS • ONGOING INTERDEPENDENCY & SUSTANABILITY SCENARIO