1. Classification: Statoil internal Status: Draft
Review of NnwaDoro (OML 109) screening work to NAPIMS by Statoil March 2004

2. License Map

3. NnwaDoro - The key to monetise gas and unlock oil for Nigeria’s southern deepwater area
OPL 216
OPL 217
OPL 218
OPL 219
OPL 220
NGOLO
AGBAMI
NNWADORO
Gas: 6
BOLIA/CHOTA
BILAH
Gas:10 – 15 tcf
Oil:1-2 bn bbls
OPL 246
AKPO
Gas: 5 – 10 tcf ?
Oil: 2 –5 bn bbls ?
SOUTHERN RIM
JDZ

4. Background
Nnwa discovered in Same structure drilled as Doro in the adjacent OPL 219 same year. Nnwa-2 Appraisal drilling 2002
Partners in OML 109 (OPL 218) Statoil (Operator) and ChevronTexaco
Partners in OPL 219 Shell (Operator), ExxonMobil, Total and Agip
Water depth 1400 meters, main reservoir fluid is dry gas
Floating LNG evaluated by both Operators to be possibly the most promising concept for commercialising of the Nnwa Doro gas resource in 2002
MoU signed in June 2002 terminated Dec 2003
Upstream and Mid stream scoping work 2004 by OML 109
Upstream 20 wells and sub sea production system
Midstream FLNG and onshore LNG

5. Design Basis - Arrival Conditions
Feedstock flowrate: 920 mmscf/d
~17 year on plateau
~9 years on decline
Arrival conditions:
Space will be provided for future re-compression
Operating range: 50 – 100% of design throughput
Phase of production
Total gas rate
mmscf/d
Pressure Offshore
@ battery limit
Temperature
Initial
920
bara
20 – 90 °C
End of initial depletion
75 bara °C
End of plateau
40 bara
End of field life
250

6. NnwaDoro FLNG concept Hull Storage LNG: 240 000 m3 LPG: 80 000 m3
FLNG cap
Gas prod : 920 mmscf/d
LNG : 5,77 MTA
LPG: 0,30 MTA
Cond Prod: 35 kbpd
Hull Storage
LNG: m3
LPG: m3
Cond: m3

7. Layout Summary Updated FLNG study 2004 MOU FLNG study 2003
Topside length inclusive safety gaps
368,2 m
329 m
Topside width
76 m
81,2 m
Footprint area m2
26,715 m2
Number of Modules 5 10
Numbers of levels
3 - 4
Steel Barge
450m x 76m
435m x 81,2m

8. NnwaDoro FLNG concept (450m x 76m)
CHOKE
MODULE
INLET/GAS
TREATMENT
MODULE
FLARE
RISERS
LIQUEFACTION
MODULE
CHEMICAL
TOTE TANKS
& INJECTION
SKID
FRACTIONATION
MODULE
LAYDOWN AREA
FIRE/BLAST WALL
POWER GENERATION
MODULE (5 + 1)
LAYDOWN AREA
OFFLOADING TANKER
LIVING
QUARTERS
OFFLOADING AREA
UTILITY/ELECTRICAL
EQUIPMENT MODULE
WORKSHOPS

9. Topside FLNG Weights Updated FLNG study 2004 MOU FLNG study 2003
Master Equipment List –Tonnes %
14 462
25.6
15 512
26.4
Structure –Tonnes
26 623
47.2
27 143
46.2
Bulk –Tonnes %
15 330
27.2
16 125
27.4
Weight allowance included
15%
Total -Tonnes
56 415
58 780
Weight outside topside area
6 473
5 980

10. Steel Hull issues The hull concept design is based on:
Double hull used for ballast water
Double deck areas (dry voids)
Steel deck fully insulated over full deck area for process modules
LNG tanks of either the membrane or SPB type
LPG tanks non-pressurised fully refrigerated design
Living Quarters for 200 persons at the aft end of the hull
NnwaDoro topside footprint/ topside area requirement dictate the size of the hull
Flare is positioned at the bow

11. NnwaDoro FPSO concept and onshore LNG plant
Offshore FPSO cap
Gas prod : 967,5 mmscf/d
Cond Prod: 32 kbpd
Storage
Cond: m3
Onshore plant cap
Gas prod : 920 mmscf/d
LNG : 5,63 MTA
LPG: 0,34 MTA
Cond Prod: 4 kbpd

12. LNG plant Layout Tank farm cap 2 x 150,000 m3 LNG tanks
1 x 50,000 m3 Propane tank
1 x 50,000 m3 Butane tank
1 x 36,000 m3 condensate tank
Infrastructure for surrounding districts, e.g. roads / township / civil amenities /airport / etc. is excluded from the present scope

13. Cost and schedule Assumptions
ESTIMATE ASSUMPTIONS
The estimate is prepared in USD mid 2004 values
Basis for the estimate are the update of results from technical studies in the MoU phase

14. CAPEX estimates – Scoping concepts
MOU FLNG
MUSD 2003
Updated FLNG
MUSD 2004
Offshore & Onshore
Upstream costs (20 wells)
1073
1505
2799
Drilling
661
835
Sub sea production system
412
670
Pipeline to shore -
319
FPSO
976
FLNG concept
2835
2970
Topside facilities
1992
2185
Riser tower and turret
380
Steel hull including LQ
463
785
Onshore plant
3089
Total costs
3908
4475
5888

15. Price expectations Feb 2005
The current market assumes that the US natural gas prices in real terms will move towards 4,00 05USD/MMBtu by 2010

16. Nigeria block 218 – NnwaDoro Assumptions
Condensate sales price:
$25 ‘04/bbl ’04
LNG sales price:
$4,0 ’04/mmbtu, Henry Hub
Regas tariff $0,55/shipping tariff $0,50  FOB price = $2,95 ’04
Propane sales price:
$217,4 ‘04/t
Butane sales price:
$216,0 ’04/t
Inflation:
2,5%
Discount rate:
10% nominal
All values given as 100% project, un-risked

17. Nigeria block 109 – NnwaDoro Assumptions
No abandonment cost included for midstream (useful life of asset longer than assumed production period)
For upstream; condensate volumes treated according to oil terms, gas volumes according to new gas terms. Cost split according to relative shares of total volumes.
Export pipeline treated as subsea cost (VAT/import duty) in upstream

18. NnwaDoro cases - results
Base case
nom
IRR
Case 1
NnwaDoro subsea dev., gas sales to FLNG
1446
15,5%
Case 2
NnwaDoro FPSO dev., gas sales to onshore plant
459
11,3%
Main conclusions:
Subsea dev: Upside not as big as in other cases, since governed by gas terms and hence no ITC, as in PSA
Sales to FLNG better than to onshore plant

19. Summary
Need to negotiate gas PSC and pre-unit agreement to be able to move project forward
Gas PSC and pre-unit necessary must be in place before embarking on further appraisal drilling
Statoil is prepared to take the leadership and fast track the NnwaDoro project
Technical Feasibility has been demonstrated
Reduced sub surface uncertainty and increased reserve basis is a requirement for moving forward
US market is the key target

20. Way Forward Exploration drilling Appraisal drilling ongoing
FLNG MoU phase
OML 109 data trade (no success towards OPL 219 and OPL 246)
OML conversion
Re-processed seismic
Subsurface evaluation OML 109/ OPL 219 (ongoing)
Negotiate gas PSC/ pre-unitisation agreement (gas terms)/ Joint operating agreement
Prepare NnwaDoro assessment plan and budget
Drill appraisal wells
Subsurface evaluation
Concept evaluation
Establish commercial structure/terms
Concept selection
FEED
Finalise commercial agreements and fiscal terms
Sanction (FID)
Construction and pre-drilling phase
Production start

21. Current OML 109 Long term development plan
2010
2011
2012
2004
2005
2006
2007
2008
2009
Gas terms
Gas PSC/Pre unit agreement
Subsurface Evaluation
Phase 1 & 2
Appraisal Drilling ( 2-3 wells)
Phase 3
Conceptual evaluation
Concept selection
PRE-FEED & FEED
Commercial Structure/unitisation
Sanction (FID)
Construction and pre-drilling phase
Production start
Keys to delivery
Negotiate gas PSC
Partner alignment
Sufficient reserves
Cost effective concept
Scoping work
ITT process
ITT process