Nigeria Descalzi Presentation

Nigeria Field Trip
Claudio Descalzi Senior Vice President for Operations Italy, Africa and Middle East E&P Division
October, 2002 October, 2002
WARRI
FORCADOS
SPM 1 SPM 2 OML 63
OML 60
OML 61 OML 62
SAM ABR I
ABA
TAYLO R C . R
ELEME
Rumuji
PORT HARCOURT
BRASS SPM 1 SPM 2 FPSO
OML 116
BONNY
OML 119
Eni Nigeria Field Trip
Socio-Economic Situation Year 2001

! 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 build Country
GENERAL DATA
Population: GDP: GDP per capita: GDP growth rate: External Debt 120 million 36.0 Billion US$ 300 US$ 3% 27 Billion US$
UPSTREAM SECTOR
Oil production: Total Gas production: Oil & Cond. Reserves 2P: Gas Reserves: 2,1 M BOPD 0.84 M BOEPD 30.0 B STB 138.1 T SCF
Oil and Gas revenues represent 78% of foreign exchange earning and 38% of GDP
Eni Nigeria Field Trip The Central
3
Bank of Nigeria, Annual Report 2001; IMF, Annual Report 2001; NNPC, Monthly Petroleum Information
Enis contribution to the Countrys great challenges

! Special attention to NIGER DELTA needs " Health improvement " Economic empowerment " Educational programs " Social Infrastructures ! Utilise gas resources currently flared
ENI in Nigeria
G R O U P
Nigerian Agip Oil Company Ltd.

J.V. Concession Agreement
G R O U P
Agip Energy & Natural Resources Ltd.

Service Contract
Nigerian Agip Exploration Ltd.

G R O U P
Production Sharing Contract
Downstream Participations
G R O U P
Nigeria LNG Limited Bonny Gas Transport Limited

Shareholder Agreement
5
Typology of Contracts
! OMLs 60/61/62/63 NAOC JV (op.) ! OMLs SPDC JV ! SOLE RISK (OML 71/72/74/77) PRODUCTION SHARING AGREEMENT
! ! ! ! OPL 211 3 (Abo field: NAE Ltd.) - 16 OPL 219 OML 118 (Bonga : Snepco op.) OML 244 OML 79 (EA field SPDC op.)
CONCESSION AGREEMENT
SERVICE AGREEMENT
! OML 116 Agbara field ! OML 119 Okono/Okpoho fields
AGIP Concessions & participated blocks

DEVELOPMENT LEASES DEVELOPMENT LEASES Sq km Sq km Operated: Operated:
OPL 902
OPL 301 OPL 302 OPL OPL OPL 303 304 305 OPL 306
6,443 6,443 32,955 32,955
OPL 201 OPL 901 OPL 307 OPL 308 OPL 474
OPL 454 OML 97 OPL 453
Non Operated: Non Operated:
LAGOS
OPL 310 OPL 311
OPL 202
OML 96
OPL 203 OPL 206

OML 5 OML 5
OPL 447 OPL 905

OML 7
OPL 309
OPL 204
OPL 113 OML 95 OML 94 OML 92 OML 1 OML 40 OML 49 OML 42
BENIN
OPL 205
OML 4 OML 38
ENUGU
OPL 907
OPL 110 OML 98 OML 41 OML 57
OPL 135
OML 39
ONITSHA
OPL 228
OPL 118 OML 15 OML 20 OML 20
EXPLORATION LEASES EXPLORATION LEASES Sq km Sq km Operated: Operated: 6,411 6,411 6,433 6,433
OPL 312
OPL 313
OPL 314
OPL 315
OPL 316
OML 34
OML 56
OML 30 30 OML OML 26
OPL 209
OPL 210
OML 43 OML 93 OML OML OML 64 90 OPL 91 OML 74 45 OML OPL 75 89 OPL 227 OML 79
WARRI
OML 44 OML 35
OML 60 OML 61
OPL 207 OPL 208
Non Operated: Non Operated:
OML 53 OML 16
OML 65
OML 27 OML 27
OML 21
OML 62 OML 62
OML 81
OML 58 OML 31 31 OML 22 22 OML 63 OML 32 32 OML 17
OML 46
OML 12 OML 48 OPL 452 OML 13

OML 68
OML 28
OML 54 OML 29 OML 23
BLOCKS WITH AGIP INTEREST

SPDC JV (NAOC 5%) NAE JV (NAE op. 50,19% - 90%) SNEPCO JV (NAE 12,5%) NAOC JV (NAOC op. 20%) AENR op. (Service Contract)
OPL 211 OML OPL 118 212 OPL 213 OPL 214
OML 50 OPL 456 OMLOML 63 OML 36 OML 59 OML 88 OPL 460 OPL 471 OML 87 OML 85 OML 37
PORT HARCOURT
OML 18 OML 18 OML 55 OML 24 OML 55 OML 25
OML 52 OML 73
CALABAR
OML 11 OML 11
OML 51
OML 33 OML 66
OML 14
OPL 98 OML 67
OML 19 OML 77 OPL 229 OPL 467
OML 86
OPL 99 OML 72
OPL 101
OML 74 OML 74
OML 70
OPL 215
OML 116 OPL 472

OML 84
OPL 225 OPL 90
OPL 224
OML 83 OPL 226
OML 91 OPL 119

OPL 221
OPL OPL 94 100
OPL 102
OPL 216
OPL 217
OPL 218
OPL 219
OPL 220
OPL 222
OPL 223
OPL 244
Enis history in Nigeria

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: 1979: 1985: FIRST TO IMPLEMENT SOCIAL PROGRAMMES (ELECTRICITY TO HOST COMMUNITES). INCORPORATION OF AGIP ENERGY & NATURAL RESOURCES Ltd. NAOC IS THE FIRST OIL COMPANY TO START RE-INJECTING THE PRODUCED GAS INTO OIL RESERVOIRS. 1989: 1989: AGIP ACQUIRES 5% OF SPDC JV, (NNPC 55%, SHELL 30% , ELF 10% , AGIP 5%) PRODUCING ABOUT 1 MILLION OF OIL BARRELS PER DAY THE NIGERIA LNG Ltd IS ESTABLISHED. PARTNERS : AGIP 10.4%, NNPC 49%, SHELL 25.6%, ELF 15%
Enis 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)
Operated production 100%

500 450 400 350 300 250 200 150 100 50 0
kboed
NAOC
AENR
NAE
10
Averaged daily operated production Year 2001
1.500
1.000
25%
KBOPD
26%
500
75% 74%
18% 82% 50% 50% 27% 73%

32% 68%
0 SHELL
oil
EXXON / MOBIL
gas
CHEVRON
Eni Eni
TotalFInaElf
TEXACO
NNPC, Monthly Petroleum Information 11
Eni Equity Production

250
200
K BOEPD
150
100
50
OIL
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
GAS
12
Equity Reserves (M BOE @ Dec. 2001)

P1 TOTAL = 2,0 B BOE
OIL GAS
P2 + P3
700
28% 72%
1300
21 % 79 %
Replacement ratio
1999 2000 2001 4.07 2.03 2.55
13
NNPC JVs Budget contribution

! Average budget 1996 2 - 002:$ 4.2 billion/year ! Budget Year 2002: 5.5 billion $ (50% capex for associated gas projects)
7 6 5 4 3 2 1 0
Total Budget billion $
funded by NNPC
1996 1997 1998 1999 2000 2001 2002
14
Investments & Operating Costs - Eni share 2001 & Four year plan 2002 - 2005
Million US$
2001
2002
2003 - 2005
Capex Development Capex Exploration
292 31
377 49
661 98
Total Capex
322
425
759
Operating Costs
72
107
434
15
Offshore Developments in Nigeria Conventional & Deep Waters

OPL 301 OPL 302
ABO Project
OPL 303 OPL OPL 304 305 OPL 306 PRODUCTION WELL WATER INJ.N WELL
OPL 902 OPL 201 OPL 901 OPL 203 OPL 447 OPL 905 OPL 206
OML 5
OPL 307
OPL 308
GAS INJECTION WELL
OPL 474 OPL 309 OPL 310 OPL 311
OPL 202
OPL 454 OML 97 OPL 453 OML 95
OPL 204
OPL 113 OML 1 Abo 2 N OML 40
BENIN
OML 96
OPL 205
OML 98 OML 4
OML 7
ENUGU
OPL 907
Abo North OPL 110
OPL 312
OPL 313
OPL 314
OPL 315
OPL OPL 316 316
2 ph as e OML 41 OML 49
OPL 135
OML 39
ONITSHA
OPL 228
OML 38
OML 94 OML 92
OML 42 Abo Central OML 43

OML 64
Abo3 OML 57 OML 34
OML 56
Abo 4 OML 30 30 OML 26 26
Abo 2
OPL 118
OPL 207
ABO
OML 93 OPL 74
OML 91
WARRI
OML 44 OML 35
OML 60
OML 20
OML 15
OPL 209
OML 90 75 OPL 227 OML 79
OML 61
OML 65 OML 27
OPL 208 Total Capex:

OML 53 OML 16
956 MUSD 103,000bopd(2005) OML

12 OPL 452
OPL 210
OML 89OPL
OML 45
OML 21
OML 62
OML 81
OML 58 OML 31 31
Peak Prod.:
PORT HARCOURT
OML 18
OML 46 OML 63 OML 32 OML 63 OML 36 OML 59 OML 88 OML 66
OML 22 22
OML 17 *All figures in Eni equity 48 OML
BONGA
OPL 211
OPL 211
OPL 212
OML 79
OPL 456
OML 28
OML 54 OML 29 OML 23 OML 55 OML 24
CALABAR
OML 50
OML 11 OML 11
OML 51
OML 118
OPL 213
OPL 460 OML 87
OML 13
OML 33
OML 55 OML 25
OML 52
OML 14
OML 68
OML 37 OML 19 OML 86 OML 77 OPL 229 OPL 467 OPL 471
OML 73
EA/EJA
OML 85
OPL 99 OML 72
OPL 101
OPL 98 OML 67
AENR (Service Contract)

NAE PSC (NAE op. 50,19% - 90%)
OPL 214 OPL 215
OML 74
OML 70
OPL 224
OML 116
OML 84
OPL 225 OPL 90
OML 83 OPL 226
OML119
OPL 221
OPL 94
OPL 100
OPL 102
SPDCJV (NAOC 5%)

SNEPCO PSC (NAE 12,5%)
OPL 216
OPL 217
OPL 218
OPL 219
OPL 219
OPL 220
OPL 222
OPL 223
OKONO/OKPOHO
16
OPL 244
Utilization of Associated Gas

View of Nigerian flares as seen from the satellite An unusual brightness in the dark of the African continent
Nigeria produces 2.1 M Bopd of oil and 4,850 M Scf/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
17
Utilization Associated Gas - Flaring down

NAOC is implementing the Gas Master Plan to achieve the zero flaring by 2004; to be the first among the oil multinationals operating in Nigeria
1985
2000
The Nigerian gas flare torches
2004
2008 85% 70%

62% 45%
40% <5%
<5%
18
NAOC Land & Swamp Area Projects

Capex: Peak Production: * All figures in Eni equity
IRRI/ISOKO OB/ OB SAMABRI / IDU FORCADOS OSHIE BENIBOYE OGBAINBIRI CLOUGH CREEK
SPDCs ROW (Nun river-Kolo creek-Rumuekpe)
286 MUSD 35,000 boepd (2007)

KWALE
IPP AKRI EOC
OBITE Ubeta P. HARCOURT
OBAMA AZUZUAMA SOKU TEBIDABA
LEGEND:
Flow Station
Oil Terminal LNG Terminal
BRASS BONNY
Raw Gas Gas Line to Bonny - GTS1 (owned by N-LNG) Oil line
SBM 1
SBM 2
19
Nigeria - LNG Projects

7.15 Bcm/y
Train 1 & 2 Train 3
3.7 Bcm/y
3.7 Billion $
Train 4 & 5
1.8 Billion $
10.3 Bcm/y
Train 6 A feasibility study for this is currently ongoing. The start up is foreseen by 2006
2.9 Billion $
20
Nigeria LNG - Marketing

Trains 1, 2 & 3
Production: 10.85 Bcm/y
Train 4 & 5
Production: 10.3 Bcm/y
Quantity already sold
BASE PROJECT Trains 1 & 2

BUYERS - QUANTITY (Bm3 /y) - DESTINATION ENEL ENAGAS GAZ DE FRANCE BOTAS TRANSGAS Total 3.50 1.6 0.5 1.2 0.35 ----------7.15 Montoir-France Huelva -Spain Montoir-France Marmara-Turkey Huelva -Spain
LNG PLUS
BUYERS - QUANTITY (Bm3 /y) - DESTINATION Eni IBERDROLA SHELL TRANSGAS Total 1.5 1.5 1.5 2.0 ----------6,5 Portugal Spain USA Portugal
EXPANSION PROJECT Train 3

BUYERS - QUANTITY (Bm3 /y) - DESTINATION ENAGAS TRANSGAS Total 2.7 1.0 -----3.7 Huelva -Spain Huelva -Spain
3.8 Bcm/y of LNG

balance already committed (MOU)
21
IPP project, Okpai 450 MWe Power Plant
Open Cycle Operations: End 2003: Gas Turbine Generators operation
Commercial Operations: Mid 2004: Full Plant Start u - p
Scope of the Project: Improve Nigeria Power Generation Capacity Reduce Gas Flaring
22
Social Commitment
23
Enis social commitment in Nigeria

More than 500 social projects for the host communities
SOCIAL INFRASTUCTURES ENVIRONMENTAL PROTECTION
n. 160 140 120
344 21
Social Infrastructures Health Environmental Protection Education - Culture
100 80 60
Total number of neighbour Communities: 250
EDUCATION CULTURE
113 43
40 20
HEALTH
0 88 89 90 91 92 93 94 95 96 97 98 99 00 01
24
Enis 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
25

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Nigeria Field Trip

Eni Nigeria Field Trip

Socio-Economic Situation Year 2001

Eni Nigeria Field Trip The Central

Enis contribution to the Countrys great challenges

Eni Nigeria Field Trip

Nigerian Agip Oil Company Ltd.

Agip Energy & Natural Resources Ltd.

Nigerian Agip Exploration Ltd.

Production Sharing Contract

Nigeria LNG Limited Bonny Gas Transport Limited

Eni Nigeria Field Trip

! OML 116 Agbara field ! OML 119 Okono/Okpoho fields

Eni Nigeria Field Trip

AGIP Concessions & participated blocks

6,443 6,443 32,955 32,955

Non Operated: Non Operated:

OPL 203 OPL 206

OPL 447 OPL 905

OPL 110 OML 98 OML 41 OML 57

OPL 207 OPL 208

Non Operated: Non Operated:

OML 58 OML 31 31 OML 22 22 OML 63 OML 32 32 OML 17

OML 12 OML 48 OPL 452 OML 13

BLOCKS WITH AGIP INTEREST

OML 19 OML 77 OPL 229 OPL 467

OML 116 OPL 472

OPL 225 OPL 90

OML 83 OPL 226

OML 91 OPL 119

OPL OPL 94 100

Eni Nigeria Field Trip

Enis history in Nigeria

Eni Nigeria Field Trip

Enis history in Nigeria

Eni Nigeria Field Trip

Operated production 100%

Averaged daily operated production Year 2001

18% 82% 50% 50% 27% 73%

NNPC, Monthly Petroleum Information 11

Eni Nigeria Field Trip

Eni Equity Production

Eni Nigeria Field Trip

Equity Reserves (M BOE @ Dec. 2001)

Eni Nigeria Field Trip

NNPC JVs Budget contribution

Total Budget billion $

Capex Development Capex Exploration

Eni Nigeria Field Trip

Offshore Developments in Nigeria Conventional & Deep Waters

GAS INJECTION WELL

OPL 474 OPL 309 OPL 310 OPL 311

OPL 454 OML 97 OPL 453 OML 95

Abo North OPL 110

OPL OPL 316 316

OML 42 Abo Central OML 43

Abo3 OML 57 OML 34

OML 90 75 OPL 227 OML 79

OPL 208 Total Capex:

956 MUSD 103,000bopd(2005) OML

OML 46 OML 63 OML 32 OML 63 OML 36 OML 59 OML 88 OML 66

OML 17 *All figures in Eni equity 48 OML

AENR (Service Contract)