1. Dr. David Ige Nigerian National Petroleum Corporation Tuesday May 4 th, 2010 Gas Master-plan and the Future of Nigerian Oil and Gas Industry Houston, Texas USA

2. 2 Nigeria’s Historical Gas Utilization and Forecast Potential Demand Confronted with an unprecedented growth in domestic demand for gas, particularly from the power sector, it became evident that the structure of the Nigerian gas sector was not robust enough to respond to such step change in demand Potential growth rate of 18-20% annually, compared with global average of 3-5% THE NIGERIAN GAS MASTERPLAN Unprecedented Demand Growth

3. THE GAS MASTERPLAN - 4 Step Plan 3

4. THE GAS MASTERPLAN Key Focus Areas –Performance Update 4 Steady progress in creating a fully competitive gas sector in Nigeria

5. 5 GAS INFRASTRUCTURE UPDATE Gas Infrastructure Blueprint

6. Appendix 6

7. SUSTAINABLE COMMERCIAL FRAMEWORKS Status of Commercial Framework Review CommercialFrameworkCommercialFramework Domestic Supply Obligation Pricing / Agreements (GSA/GTA) Pricing / Agreements (GSA/GTA) Strategic Aggregator Incorporation & Operations World bank PRG Agreements  Ongoing review of DSOs  GSPA template agreement completed  Bilateral negotiation s to commence between buyer and supplier - target close out end May  GTA template draft ongoing contingent on Network Code development  Pricing review concluded  Aggregator company now incorporated  Commenced managing buyer/supplier issue and facilitating GSPAs  In the process of selecting escrow account for gas revenues  Secured World Bank Board approval for PRG in respect of gas to power revenues  Operationalizing of the PRG ongoing – WB mission due May 7 th to address LC banks etc. 7

8. Focus Areas of the Gas Master-Plan Short/Medium Term Gas Availability (Domestic Obligations) Short/Medium Term Gas Availability (Domestic Obligations) Sustainable Commercial Framework for Domestic Market Scalable & Cost Effective Gas Infrastructure Demand Stimulation THE GAS MASTERPLAN Key Focus Areas –Performance Update  DSO’s now in place  Short term gas for power – all time high gas supply  Process alignment for gas access – Strategic Aggregator company in place  Pricing review completed – on track for commercial pricing  World Bank securitization for power  Bankable GSPA/GTAs  Infrastructure blueprint adopted  CPF Investor bids under evaluation – end May completion  Pipeline contracts to be awarded  Syndicating anchor gas based industry investors  Strategic partnerships with Niger Delta States to enable expedited investments 8