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May 2, 2012
Tolu Ewherido
Panel Session:
ANPPA PETAN Joint OTC Forum
May 2, 2012 at the Crowne Plaza Hotel, Reliant Centre, Houston Texas
This presentation includes forward-looking statements. Actual future conditions (including economic conditions, energy demand, and energy supply) could differ materially due to
changes in technology, the development of new supply sources, political events, demographic changes, and other factors discussed herein (and in Item 1A of ExxonMobils latest
report on Form 10-K or information set forth under "factors affecting future results" on the "investors" page of our website at www.exxonmobil.com). This material is not to be
reproduced without the permission of Exxon Mobil Corporation.
Nigeria Gas Resource Dominance in West Africa
0 10E 20E
10N
10N
Africa 2011 = 162 m
2030 = 227 m
CTE D'IVOIRE
GHANA NIGERIA
Available resource has the GP
NLNG
Cameroon
Population
2011 = 20.4 m
WA Brass LNG
potential to diversify the countrys Cte D'Ivoire
Population
Ghana
Population
Planned
Eq. Guinea
EG LNG
CAMEROON
2030 = 28.6 m
0
Atlantic Ocean Congo
Gabon Population
100 tcf
global markets
10S
10S
Angola
Population ANGOLA
Technical gas reserves
2011 = 19.5 m
2011 Production mmcfd 2030 = 30.4 m
50 tcf
Robust local market dynamics 1,000 - 5,000
500 - 1,000
indicative of a sustainable gas 10 tcf
50 - 500
0
Source: Wood Mackenzie
0 10E 20E
2
Nigeria Gas Resource Overview
4E 6E 8E
Total Recoverable Gas Reserves
Escravos Lagos
Onshore - (83 tcf)
Pipeline System (ELPS)
Benin City
OK LNG Gas pipeline to Ajaokuta 16
planned
Onitsha
67
6N
6N
CHEVRON JV
PARABE Oben NIGERIA
Sapele Shallow Water - (46 tcf)
MEREN AGIP JV (16 tcf)
Kwale
Warri
10
OKAN
Escravos 36
ERHA-BOSI
Obiafu-Obrikom
FORCADOS YOKRI Utorogu Pro
po
SHELL JV (38 tcf) se
dE Obite TOTAL JV
as Deepwater - (21 tcf)
t/W
es
t L in Aba 7
5N
5N
k
AGGE Gbaran-Ubie 14
AMATU Obigbo
4N
HI EDOP
Gulf of Guinea
600 - 1,000 bcf 400
1,5 m
0 0m
Gas pipeline
NGOLO EBITEMI EQUATORIAL
Planned gas pipeline
GUINEA
LNG
NNWA
Gas processing plant
BOLIA-CHOTA
GTL
DORO
3N
3N
km
0 50 100 Source: Wood Mackenzie
4E 6E 8E
Source: Platts; Oil & Gas Journal 26 May 2008, ODS Petrodata, RigLogix, press clippings, Nigeria Gas Master Plan website & Presentations
4
Balancing the Economic Risks & Reward
Technology improvements
Cycle-Time reduction
Cost of Supply
Price
Challenge:
Average cost per boe (barrel oil equivalent) of most deep water (DW) and non-associated gas (NAG) projects is
higher than the current realized domestic gas market price
Investment is necessary across the gas value chain to enable new sources of supply to enter the market
Opportunity:
Market-based pricing in combination with appropriate fiscal and commercial incentives are required to assure a
reasonable rate of return and spur further development of gas resources
5
Global Gas Development Costs
30
Onshore Shallow water Deep water
10
5
Bubble size represents commercial reserves in mmboe
0
0 5,000 10,000 15,000 20,000
6
Levers to Unlock High-Cost Gas Development
Commercial
Profit Share
Lease Term
Fiscal Stability Provision
Technical
Tax Holidays Market Technology
7
Conclusion
For the Nigerian Gas Market to attract investors, there has to be full Value Chain
Viability