1. Solution To Wasted Gas: Flaring And Associated Gas In Nigeria
© 2010 Intenergie, LLC
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2. 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”

3. 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”

4. 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 World Bank GGFR 2006,2007

5. 250 km
Satellite image of
gas flaring in Nigeria

6. 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”

7. 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”

8. 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”

9. 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”

10. 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”

11. 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”

12. 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”

13. 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”

14. “Innovation, Dedication, Service”
© 2010 Intenergie, LLC
Visit Us at
“Innovation, Dedication, Service”