Solution To Wasted Gas: Flaring And Associated Gas In Nigeria © 2010 Intenergie, LLC Visit Us at www.intenergie.com “Innovation, Dedication, Service”

Gas Solution for the Niger Delta Associated/Flaring gas issues in Nigeria Market background & alternatives Internergie Solution Technical and commercial factors © 2010 Intenergie, LLC “Innovation, Dedication, Service”

Associated/Flaring gas Issues in Nigeria Gas flares has been burning in Nigeria since the 1960's The flames are visible from space and are brighter than the lights of Lagos, Nigeria's largest city Years of flaring has reduced life expectancy in the region to only 43 years old Region has highest infant mortality rate, 12% of newborns fail to see out their first year Flaring was made illegal in 1984, but has since continued due to little or no viable solutions. Recent claims in flare reductions has been due to militant problems, which caused drawback on production Flaring costs Nigeria $1.46 billion annually in lost revenue according to NOAA © 2010 Intenergie, LLC “Innovation, Dedication, Service”

Associated Gas is a Global Problem Asia North America Africa Middle East Central & S America Europe Russia Re-injected 14 TCF Flared 6 TCF © 2010 Intenergie, LLC = 27% of annual US gas consumption ! ~4 TCF Not used to enhance oil recovery TCF – Trillion cubic feet > 10 TCF (= 4.6 mmboe per day) “Innovation, Dedication, Service” Source: International Energy Annual 2005 World Bank GGFR 2006,2007

250 km Satellite image of gas flaring in Nigeria

Distressed Gas–An Increasing E&P Challenge Environmental Issues New fields not allowed to flare Existing fields risk shut-in or financial penalties Gas Re-injection High cost – wells in deepwater can cost $200 to $250 million Gas breakthrough risks, limits production, threat to reserves Wasted Hydrocarbon ‘Asset’ Gas un-bookable as “reserves” Governments concerned by national resource issues © 2010 Intenergie, LLC Gas Infrastructure Issues High cost of pipelines in remote or deepwater areas Multi-party, complex infrastructure projects take time “Innovation, Dedication, Service”

Current Offshore Gas Management Problems Employ gas as FPSO fuel source Pipe gas to onshore infrastructure © 2010 Intenergie, LLC Re-inject gas into reservoir Flare gas “Innovation, Dedication, Service”

Emerging Gas Utilization Options CNG High infrastructure cost Economics favourable at 200+ MMscfd Concepts being developed Economics dependent on distance to shore FLNG High infrastructure cost Economics favourable at 400+ MMscfd Project studies underway © 2010 Intenergie, LLC Gas to Wire High cost for deep water and remote fields Needs local market for power Economics dependent on distance to shore “Innovation, Dedication, Service”

INTENERGIE SOLUTION - Plant replaces gas re-injection wells Savings in excess of $250 million to $1 billion. Company realizes immediate revenue from previously re-injected or flared gas transformed to higher grade crude. Plant mounted on FSPO already attached to field. Greater revenue from Higher grade crude than LNG gas sales, with much less costs. Plant can be placed on skid mounts and used onshore. © 2010 Intenergie, LLC “Innovation, Dedication, Service”

Intenergie Solution at 2-50 MMscfd © 2010 Intenergie, LLC Integrate the plant with the production facility Convert the associated gas into syncrude Co-mingle and transport with the natural crude “Innovation, Dedication, Service”

Workable Solution – Technical Factors Safety No oxygen supply required Offshore certification Operability & Reliability No catalyst handling on facility Exchangeable 25 tonne reactor modules Handles high CO2 gas Handles variable gas composition & flow-rate Seaworthiness Low liquid inventory Low C.O.G. Motion insensitivity Scalability Accommodates production decline over field life © 2010 Intenergie, LLC “Innovation, Dedication, Service”

Commercial Factors—Field Development Time Avoid multi-party gas infrastructure negotiations Overcome flaring restrictions Acceleration…. Capex Savings in gas re-injection wells & equipment Savings in gas pipeline infrastructure Offset by…. Revenue Additional syncrude revenue No additional storage / transport / market costs Increased…. © 2010 Intenergie, LLC Reserves Distressed gas now bookable as reserves Increased…. Project Enabler Enhanced Oilfield NPV “Innovation, Dedication, Service”

SUMMARY True ‘standalone’ solution Strong economics where gas infrastructure or re-injection are avoided Key engineering aspects identified & addressed by pre-FEED studies Technology verified by major independent groups Operability & complete process verified by current operating pilot plants. Manufacturing route & partners established © 2010 Intenergie, LLC “Innovation, Dedication, Service”

“Innovation, Dedication, Service” © 2010 Intenergie, LLC Visit Us at www.intenergie.com “Innovation, Dedication, Service”