Tony Chukwueke, Director at Transcorp Energy - Potential of oil and gas in niger delta
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Tony Chukwueke, Director at Transcorp Energy spoke at the Oil & gas Event June 2013
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Tony Chukwueke, Director at Transcorp Energy - Potential of oil and gas in niger delta
- 1. Realising the Oil and Gas Potential of the Niger Delta Dr Tony Chukwueke June 2013 The Oil & Gas Event Accra, Ghana www.transcorpnigeria.com
- 2. Nigerian Sedimentary Basins remain among the most prolific in the world AMAL GAM OPL-4 52 COTONOU KRIBI TIKO SANTA ISABEL SHELL-OML-7 SUNLI NK- OPL47 4 OPL-314OPL-313OPL-312 OPL-311OPL-310OPL-309 OPL-301 OPL-302 OPL-304 OPL-306 OPL-307 OPL-308 OPL-902 OPL-903 OPL-905 OPL-906 OPL-904 UMIC PACL AN- OPL- 204 ELF-OPL-447 OPL-201 SUM MIT INT.- OPL- 206 IPEC-OPL-202 SUPR A- OPL- 203 YINKA DEVINE JAMES PET SUNLINK OBE KPA OPL- 241 SEA WOL F OPL- 907 OPL-315 AGIP OPL-211 ALLIE D- OPL- 210 AGIP OPL-316 MOBIL-OPL-94NPDC-OPL-91 ELF-OPL-222 ELF-OML-100 ELF-OML-102 NORE AST- OPL- 215 STATOI L/BPX- OPL-213 OPL 242 OPL 243 OPL 244 OPL 245 OPL 246 OPL 247 SHEL L- OML- 25 SHE LL- OML -19 SHEL L- OML- 24 SHEL L- OML- 29 SHEL L- OML- 33 SHEL L- OML- 18 SHEL L- OML- 43 SHEL L- OML- 45 SHEL L- OML- 44 SHEL L- OML- 42 AGIP OML-63 CHEV RON- OML- 55 CHEV RON- OML- 52 CHEV RON- OML- 55 NDPC OML-66 AMNI OPL-237 SHEL L- OML- 79 SHEL L- OML- 40 SHELL-OML-1 SHEL L- OML- 11 SHEL L- OML- 23 SHEL L- OML- 17 SHEL L- OML- 20 SHE LL- OML -15 SHEL L- OML- 21 ELF-OML-58 SHEL L- OML- 31 SHEL L- OML- 26 ELF-OML-56 NPDC-OML-65 NAOC-OML-61 CHEV RON- OML- 54 LAM ONT OPL- 207 SHEL L- OML- 30 SHEL L- OML- 38 ASHLA ND- OPL- 118 CHEV RON- OML- 49 SHEL L- OML- 38 SHELL-OML-4 SHELL-OML-5 OPL-135 QUEE NS PETRO . NIG. LTD. OPL-228 EXPRES S PETR OML- 108 ATLA S- OPL- 75 OPL 239 ULTR AMAR OPL- 227 SHEL L- OML- 74 OPL-467 MOBIL-OML-68 MOBIL-OML-69 MOBIL-OML-67 SHEL L- OML- 14 MOBIL-OML-67 ELF-OML-101 ASA RIS OPL- 236 MAR EENA OPL 231 MOBIL-OML-70 ORIE NT- OPL- 224 ELF-OML-99 PEAK OPL-460 TEXA CO- OML- 86 IPEC-OPL-229 OPEN IBADA N OPL-303 OPL-305 OPL-901 (EQU ATOR IAL GUIN EA) CAVE NDIS H- OPL- 453MLM OPL-454 DUBRI-OML-96 TEXA CO- OML- 84 AGIP OML-63 CONSOL IDATED- OPL-113 SHE LL- OML -34 QIT CONSO LIDATE D-OPL- 458 EBUTE METTA ABEOKUTA LEKKI LAGOON GULF OF GUINEA BIGHT OF BENIN NKO NGS AMB A KATSIN A RIER GAMANA RIVER SANAGA RIVER NIGERIA CAMEROUN BENIN CITY SUM MIT INT.- OPL- 205 TGO LAG OS EXX ON- OPL- 209 CHE VRO N- OML- 95 TEXA CO- OML- 83 ASHL AND- OPL- 90 ASHL AND- OPL- 225 SHEL L- OPL- 219 MOB IL- OPL- 221 DU PON T-O PL-2 20 STATOI L/BPX- OPL- 218 STATO IL/BPX- OPL- 217 FAM FA- OPL- 216 INT OIL- OPL- 214 SOL GAS OPL- 226 AGI PEN OPL -472 SUN LINK OPL- 238 WARR I SHE LL- OML -73 SHE LL-O ML-7 2 CHEV RON- OML- 90 CHE VRO N- OML -91 CHE VRO N- OML- 89 ATL AS- OPL- 75 SAPELE SHE LL- OML -41 NPD C- OPL- 110 SHE LL- OML -22 SHE LL- OML -16 CHEV RON- OML- 54 SHE LL-O ML-2 8 CHEV RON- OML- 53 PORT HARCOUR T BRA SS OPL -208 CRES CENT OPL- 234 SHE LL- OML -39 ONITSH APAN OCE AN- OML- 98 CHEV RON- OML- 49 CHEV RON- OML- 95 O P L 2 4 0 SHE LL- OML -72SHE LL- OML -71 SHE LL- OML -74 SHE LL- OML -77 CALABAR ASHL AND- OPL- 98 ASA RIS OPL -235 MOBIL-OML-70 SHE LL-O ML-1 3 TEX ACO - OML -88 TEX ACO - OML -85 TEXA CO- OML- 87 MON CRIE F- OPL- 471 Sokoto Embayment Bida Basin Chad Basin Benue Trough Anambra Basin Benin Basin Niger Delta BENI www.transcorpnigeria.com
- 3. In 2005, the Federal Government of Nigeria enunciated and drove an ambitious national aspiration for the Nigeria Oil and Gas sector AMAL GAM OPL- 452 COTONOU KRIBI TIKO SANTA ISABEL SHELL-OML-7 SUNLI NK- OPL47 4 OPL-314OPL-313OPL-312 OPL-310OPL-309 OPL-301 OPL-302 OPL-304 OPL-306 OPL-307 OPL-308 OPL-902 OPL-903 OPL-905 OPL-906 OPL-904 UMIC PACL AN- OPL- 204 ELF-OPL-447 OPL-201 SUM MIT INT.-O PL-206 IPEC-OPL-202 SUPR A- OPL- 203 YINKA DEVINE JAMES PET SUNLINK OBE KPA OPL- 241 SEA WOL F OPL- 907 OPL-315 AGIP OPL-211 ALLIE D- OPL- 210 AGIP OPL-316 MOBIL-OPL-94NPDC-OPL-91 ELF-OPL-222 ELF-OML-100 ELF-OML-102 NORE AST- OPL- 215 STATOI L/BPX- OPL-213 OPL 242 OPL 244 OPL 245 OPL 246 OPL 247 SHEL L- OML- 25 SHE LL- OML -19 SHEL L- OML- 24 SHEL L- OML- 29 SHEL L- OML- 33 SHEL L- OML- 18 SHEL L- OML- 43 SHEL L-OM L-45 SHEL L- OML- 44 SHEL L- OML- 42 AGIP OML-63 CHEV RON- OML- 55 CHEV RON- OML- 52 CHEV RON- OML- 55 NDPC OML-66 AMNI OPL-237 SHEL L- OML- 79 SHEL L- OML- 40 SHELL-OML-1 SHEL L- OML- 11 SHEL L- OML- 23 SHEL L- OML- 17 SHEL L-OM L-20 SHE LL- OML -15 SHEL L- OML- 21 ELF-OML-58 SHEL L- OML- 31 SHEL L- OML- 26 ELF-OML-56 NPDC-OML-65 NAOC-OML-61 CHEV RON- OML- 54 LAM ONT OPL- 207 SHEL L- OML- 30 SHEL L- OML- 38 ASHLA ND- OPL- 118 CHEV RON- OML- 49 SHEL L-OM L-38 SHELL-OML-4 SHELL-OML-5 OPL-135 QUEE NS PETRO . NIG. LTD. OPL-228 EXPRES S PETR OML- 108 ATLA S- OPL- 75 OPL 239 ULTR AMAR OPL- 227 SHEL L- OML- 74 OPL-467 MOBIL-OML-68 MOBIL-OML-69 MOBIL-OML-67 SHEL L- OML- 14 MOBIL-OML-67 ELF-OML-101 ASA RIS OPL- 236 MAR EENA OPL 231 MOBIL-OML-70 ORIE NT- OPL- 224 ELF-OML-99 PEAK OPL-460 TEXA CO- OML- 86 IPEC-OPL-229 OPEN IBADA N OPL-303 OPL-305 OPL-901 (EQU ATOR IAL GUIN EA) CAVE NDIS H-OPL -453MLM OPL-454 DUBRI-OML-96 TEXA CO- OML- 84 AGIP OML-63 CONSOL IDATED- OPL-113 SHE LL- OML -34 QIT CONSO LIDATE D-OPL- 458 To grow the nation’s oil production capacity to 4 million bpd by 2010 by growing the oil reserves base optimally with infrastructure and within the constraints of OPEC but without the need for Government funding through maintaining the attractiveness of the sector to investment. To build a viable and sustainable gas business for the country both for export and domestic consumption and end the continuous flaring of Gas by year 2008. To turn the country into an oil refining and products producing country for export and resolve the perennial fuel scarcity in the country by year 2010. To provide a credible and meaningful indigene participation and Nigerianisation (Local Content) programme for the Oil & Gas sector. www.transcorpnigeria.com
- 4. Government and industry pursued a deliberate programme to meet this aspiration AMAL GAM OPL- 452 COTONOU KRIBI TIKO SANTA ISABEL SHELL-OML-7 SUNLI NK- OPL47 4 OPL-314OPL-313OPL-312 OPL-310OPL-309 OPL-301 OPL-302 OPL-304 OPL-306 OPL-307 OPL-308 OPL-902 OPL-903 OPL-905 OPL-906 OPL-904 UMIC PACL AN- OPL- 204 ELF-OPL-447 OPL-201 SUM MIT INT.- OPL- 206 IPEC-OPL-202 SUPR A- OPL- 203 YINKA DEVINE JAMES PET SUNLINK OBE KPA OPL- 241 SEA WOL F OPL- 907 OPL-315 AGIP OPL-211 ALLIE D- OPL- 210 AGIP OPL-316 MOBIL-OPL-94NPDC-OPL-91 ELF-OPL-222 ELF-OML-100 ELF-OML-102 NORE AST- OPL- 215 STATOI L/BPX- OPL-213 OPL 242 OPL 244 OPL 245 OPL 246 OPL 247 SHEL L-OM L-25 SHE LL- OML -19 SHEL L- OML- 24 SHEL L- OML- 29 SHEL L- OML- 33 SHEL L- OML- 18 SHEL L- OML- 43 SHEL L- OML- 45 SHEL L- OML- 44 SHEL L- OML- 42 AGIP OML-63 CHEV RON- OML- 55 CHEV RON- OML- 52 CHEV RON- OML- 55 NDPC OML-66 AMNI OPL-237 SHEL L- OML- 79 SHEL L- OML- 40 SHELL-OML-1 SHEL L- OML- 11 SHEL L- OML- 23 SHEL L- OML- 17 SHEL L- OML- 20 SHE LL- OML -15 SHEL L- OML- 21 ELF-OML-58 SHEL L- OML- 31 SHEL L- OML- 26 ELF-OML-56 NPDC-OML-65 NAOC-OML-61 CHEV RON- OML- 54 LAM ONT OPL- 207 SHEL L- OML- 30 SHEL L- OML- 38 ASHLA ND- OPL- 118 CHEV RON- OML- 49 SHEL L- OML- 38 SHELL-OML-4 SHELL-OML-5 OPL-135 QUEE NS PETRO . NIG. LTD. OPL-228 EXPRES S PETR OML- 108 ATLA S- OPL- 75 OPL 239 ULTR AMAR OPL-2 27 SHEL L- OML- 74 OPL-467 MOBIL-OML-68 MOBIL-OML-69 MOBIL-OML-67 SHEL L- OML- 14 MOBIL-OML-67 ELF-OML-101 ASA RIS OPL- 236 MAR EENA OPL 231 MOBIL-OML-70 ORIE NT- OPL- 224 ELF-OML-99 PEAK OPL-460 TEXA CO- OML- 86 IPEC-OPL-229 OPEN IBADA N OPL-303 OPL-305 OPL-901 (EQU ATOR IAL GUIN EA) CAVE NDIS H- OPL- 453MLM OPL-454 DUBRI-OML-96 TEXA CO- OML- 84 AGIP OML-63 CONSOL IDATED- OPL-113 SHE LL- OML -34 QIT CONSO LIDATE D-OPL- 458 Opening up of new oil and gas assets to new investments in exploration and exploitation – frontier areas in the Deep Offshore and Inland Basins, Re-invigoration of activities in the traditional areas of the Niger Delta and the Deep Offshore through mandatory relinquishment and re-allocation of dormant acreage in the Niger Delta. Pursuing regular, open and transparent Bidding Process for exploration assets allocation as a means to optimise the identification of reserves, provide a more level playing field to attract new investors, maximise revenue to Government by way of signature bonus and improve international confidence in the Oil and Gas sector. Seeking out and attracting new investors to compliment traditional players and linking investment in the downstream with upstream assets allocation to integrate value generation across the oil and gas value chain and promote the principle of ‘using what we have to get what we need’. www.transcorpnigeria.com
- 5. Government and industry pursued a deliberate programme to meet this aspiration AMAL GAM OPL- 452 COTONOU KRIBI TIKO SANTA ISABEL SHELL-OML-7 SUNLI NK- OPL47 4 OPL-310OPL-309 OPL-301 OPL-302 OPL-304 OPL-306 OPL-307 OPL-308 OPL-902 OPL-903 OPL-905 OPL-906 OPL-904 UMIC PACL AN- OPL- 204 ELF-OPL-447 OPL-201 SUM MIT INT.- OPL- 206 IPEC-OPL-202 SUPR A- OPL- 203 YINKA JAMES PET SUNLINK OBE KPA OPL- 241 SEA WOL F OPL- 907 OPL-315 AGIP OPL-211 ALLIE D- OPL- 210 AGIP OPL-316 MOBIL-OPL-94NPDC-OPL-91 ELF-OPL-222 ELF-OML-100 ELF-OML-102 NORE AST- OPL- 215 STATOI L/BPX- OPL-213 OPL 242 OPL 244 OPL 245 OPL 246 OPL 247 SHEL L- OML- 25 SHE LL- OML -19 SHEL L- OML- 24 SHEL L- OML- 29 SHEL L- OML- 33 SHEL L- OML- 18 SHEL L- OML- 43 SHEL L- OML- 45 SHEL L- OML- 44 SHEL L- OML- 42 AGIP OML-63 CHEV RON- OML- 55 CHEV RON- OML- 52 CHEV RON- OML- 55 NDPC OML-66 AMNI OPL-237 SHEL L- OML- 79 SHEL L- OML- 40 SHELL-OML-1 SHEL L- OML- 11 SHEL L- OML- 23 SHEL L- OML- 17 SHEL L- OML- 20 SHE LL- OML -15 SHEL L- OML- 21 SHEL L- OML- 31 SHEL L- OML- 26 ELF-OML-56 NPDC-OML-65 NAOC-OML-61 CHEV RON- OML- 54 LAM ONT OPL- 207 SHEL L- OML- 30 SHEL L- OML- 38 ASHLA ND- OPL- 118 CHEV RON- OML- 49 SHEL L- OML- 38 SHELL-OML-4 SHELL-OML-5 OPL-135 QUEE NS PETRO . NIG. LTD. OPL-228 EXPRES S PETR OML- 108 ATLA S-OP L-75 OPL 239 ULTR AMAR OPL- 227 SHEL L- OML- 74 OPL-467 MOBIL-OML-68 MOBIL-OML-69 MOBIL-OML-67 SHEL L- OML- 14 MOBIL-OML-67 ELF-OML-101 ASA RIS OPL- 236 MAR EENA OPL 231 MOBIL-OML-70 ORIE NT- OPL- 224 ELF-OML-99 PEAK OPL-460 TEXA CO- OML- 86 IPEC-OPL-229 OPEN IBADA N OPL-303 OPL-305 OPL-901 (EQU ATOR IAL GUIN EA) CAVE NDIS H- OPL- 453MLM OPL-454 DUBRI-OML-96 TEXA CO- OML- 84 AGIP OML-63 CONSOL IDATED- OPL-113 SHE LL- OML -34 QIT CONSO LIDATE D-OPL- 458 Adopting Production Sharing Contracts as the preferred commercial instruments with revised fiscal terms to progressively eliminate the need for Government cash-call to fund the oil and gas sector while maximising Government take. Aggressively pursuing natural gas development including access to 3rd parties and non-traditional players to eliminate gas flaring, meet domestic gas demand and then export, under new fiscal terms that will attract the required level of investments. Launch of fundamental and far reaching transformation of the Oil and Gas Sector that will privatise ailing NNPC facilities and build a strong and dominant operating National Oil Company and separate and empowered regulatory agencies, able to function with state of the art technology and manpower. www.transcorpnigeria.com
- 6. www.transcorpnigeria.com6 2009 Oil Reserves (Barrels) Niger Delta 28 Bln Deepwater 5 Bln Total 33 Bln Niger Delta 160 Tcf Deepwater 27 Tcf Total 187 Tcf 2009 Gas Reserves (Tcf) The successes in the Deepwater coupled with the Niger Delta significantly enhanced Nigeria’s position as a major oil and gas player.
- 7. Summary of Industry Position AMAL GAM OPL- 452 COTONOU KRIBI TIKO SANTA ISABEL SHELL-OML-7 SUNLI NK- OPL47 4 OPL-310OPL-309 OPL-301 OPL-302 OPL-304 OPL-306 OPL-307 OPL-308 OPL-902 OPL-903 OPL-905 OPL-906 OPL-904 UMIC PACL AN- OPL- 204 ELF-OPL-447 OPL-201 SUM MIT INT.-O PL-206 IPEC-OPL-202 SUPR A- OPL- 203 YINKA JAMES PET SUNLINK OBE KPA OPL- 241 SEA WOL F OPL- 907 OPL-315 AGIP OPL-211 ALLIE D- OPL- 210 AGIP OPL-316 MOBIL-OPL-94NPDC-OPL-91 ELF-OPL-222 ELF-OML-100 ELF-OML-102 NORE AST- OPL- 215 STATOI L/BPX- OPL-213 OPL 242 OPL 244 OPL 245 OPL 246 OPL 247 SHEL L- OML- 25 SHE LL- OML -19 SHEL L- OML- 24 SHEL L- OML- 29 SHEL L- OML- 33 SHEL L- OML- 18 SHEL L- OML- 43 SHEL L- OML- 45 SHEL L-OM L-44 SHEL L- OML- 42 AGIP OML-63 CHEV RON- OML- 55 CHEV RON- OML- 52 CHEV RON- OML- 55 NDPC OML-66 AMNI OPL-237 SHEL L- OML- 79 SHEL L- OML- 40 SHELL-OML-1 SHEL L- OML- 11 SHEL L- OML- 23 SHEL L- OML- 17 SHEL L- OML- 20 SHE LL-O ML-1 5 SHEL L- OML- 21 SHEL L- OML- 31 SHEL L- OML- 26 ELF-OML-56 NPDC-OML-65 NAOC-OML-61 CHEV RON- OML- 54 LAM ONT OPL- 207 SHEL L- OML- 30 SHEL L- OML- 38 ASHLA ND- OPL- 118 CHEV RON- OML- 49 SHEL L- OML- 38 SHELL-OML-4 SHELL-OML-5 OPL-135 QUEE NS PETRO . NIG. LTD. OPL-228 EXPRES S PETR OML- 108 ATLA S- OPL- 75 OPL 239 ULTR AMAR OPL- 227 SHEL L- OML- 74 OPL-467 MOBIL-OML-68 MOBIL-OML-69 MOBIL-OML-67 SHEL L- OML- 14 MOBIL-OML-67 ELF-OML-101 ASA RIS OPL- 236 MAR EENA OPL 231 MOBIL-OML-70 ORIE NT- OPL- 224 ELF-OML-99 PEAK OPL-460 TEXA CO- OML- 86 IPEC-OPL-229 OPEN IBADA N OPL-303 OPL-305 OPL-901 (EQU ATOR IAL GUIN EA) CAVE NDIS H- OPL- 453MLM OPL-454 DUBRI-OML-96 TEXA CO- OML- 84 AGIP OML-63 CONSOL IDATED- OPL-113 SHE LL- OML -34 QIT CONSO LIDATE D-OPL- 458 Significant milestones were reached in key areas of activities highlighted above. However, progress has slowed significantly due to changes in government priorities militancy, sabotage in the Niger Delta delay in the passage of the Petroleum Industry Bill. Furthermore, further discoveries of commercial quantities of hydrocarbon in neighbouring countries in the sub- region, notably; Ghana, Equatorial Guinea and Angola, coupled with decreasing oil and gas exports to the United States arising from global recession and the advent of Shale gas, have added pressure on the Nigerian Oil and Gas sector www.transcorpnigeria.com
- 8. The challenges of the sector are many; and The country needs sustainable transformation of the energy sector AMAL GAM OPL- 452 COTONOU KRIBI TIKO SANTA ISABEL SHELL-OML-7 SUNLI NK-O PL474 OPL-310OPL-309 OPL-301 OPL-302 OPL-304 OPL-306 OPL-307 OPL-308 OPL-902 OPL-903 OPL-905 OPL-906 OPL-904 UMIC PACL AN- OPL- 204 ELF-OPL-447 OPL-201 SUM MIT INT.- OPL- 206 IPEC-OPL-202 SUPR A- OPL- 203 YINKA JAMES PET SUNLINK OBE KPA OPL- 241 SEA WOL F OPL- 907 OPL-315 AGIP OPL-211 ALLIE D- OPL- 210 AGIP OPL-316 MOBIL-OPL-94NPDC-OPL-91 ELF-OPL-222 ELF-OML-100 ELF-OML-102 NORE AST- OPL- 215 STATOI L/BPX- OPL-213 OPL 242 OPL 244 OPL 245 OPL 246 OPL 247 SHEL L- OML- 25 SHE LL- OML -19 SHEL L- OML- 24 SHEL L- OML- 29 SHEL L- OML- 33 SHEL L- OML- 18 SHEL L-OM L-43 SHEL L- OML- 45 SHEL L- OML- 44 SHEL L- OML- 42 AGIP OML-63 CHEV RON- OML- 55 CHEV RON- OML- 52 CHEV RON- OML- 55 NDPC OML-66 AMNI OPL-237 SHEL L- OML- 79 SHEL L- OML- 40 SHELL-OML-1 SHEL L- OML- 11 SHEL L- OML- 23 SHEL L-OM L-17 SHEL L- OML- 20 SHE LL- OML -15 SHEL L- OML- 21 SHEL L- OML- 31 SHEL L- OML- 26 ELF-OML-56 NPDC-OML-65 NAOC-OML-61 CHEV RON- OML- 54 LAM ONT OPL- 207 SHEL L- OML- 30 SHEL L- OML- 38 ASHLA ND- OPL- 118 CHEV RON- OML- 49 SHEL L-OM L-38 SHELL-OML-4 SHELL-OML-5 OPL-135 QUEE NS PETRO . NIG. LTD. OPL-228 EXPRES S PETR OML- 108 ATLA S- OPL- 75 OPL 239 ULTR AMAR OPL- 227 SHEL L- OML- 74 OPL-467 MOBIL-OML-68 MOBIL-OML-69 MOBIL-OML-67 SHEL L- OML- 14 MOBIL-OML-67 ELF-OML-101 ASA RIS OPL- 236 MAR EENA OPL 231 MOBIL-OML-70 ORIE NT- OPL- 224 ELF-OML-99 PEAK OPL-460 TEXA CO- OML- 86 IPEC-OPL-229 OPEN IBADA N OPL-303 OPL-305 OPL-901 (EQU ATOR IAL GUIN EA) CAVE NDIS H-OPL -453MLM OPL-454 DUBRI-OML-96 TEXA CO- OML- 84 AGIP OML-63 CONSOL IDATED- OPL-113 SHE LL- OML -34 QIT CONSO LIDATE D-OPL- 458 There is a general decline in oil and gas production capacity due to the decision of key international operators to divest from the Niger Delta towards the offshore. The decline in the demand for LNG in the US has dampened the programme to stop gas flaring in the country, and therefore Government has diverted attention towards domestic gas utilisation projects (power, petrochemicals & fertiliser, commercial & industrial utilisation). The current demand for electricity in the country is estimated at some 15,000 MW but the present generation and distribution capacity is around 3500 MW. The demand for refined petroleum products (pms, dpk, ago) is some 30 million litres per day while domestic refining capacity stand at some 5 million litres per day. The difference is presently imported. www.transcorpnigeria.com
- 9. The Federal Government of Nigeria has enunciated the following national aspiration for the Energy Sector AMAL GAM OPL- 452 COTONOU KRIBI TIKO SANTA ISABEL SHELL-OML-7 SUNLI NK- OPL47 4 OPL-310OPL-309 OPL-301 OPL-302 OPL-304 OPL-306 OPL-307 OPL-308 OPL-902 OPL-903 OPL-905 OPL-906 OPL-904 UMIC PACL AN- OPL- 204 ELF-OPL-447 OPL-201 SUM MIT INT.- OPL- 206 IPEC-OPL-202 SUPR A- OPL- 203 YINKA JAMES PET SUNLINK OBE KPA OPL- 241 SEA WOL F OPL- 907 OPL-315 AGIP OPL-211 ALLIE D- OPL- 210 AGIP OPL-316 MOBIL-OPL-94NPDC-OPL-91 ELF-OPL-222 ELF-OML-100 ELF-OML-102 NORE AST- OPL- 215 STATOI L/BPX- OPL-213 OPL 242 OPL 244 OPL 245 OPL 246 OPL 247 SHEL L- OML- 25 SHE LL- OML -19 SHEL L- OML- 24 SHEL L- OML- 29 SHEL L-OM L-33 SHEL L- OML- 18 SHEL L- OML- 43 SHEL L- OML- 45 SHEL L- OML- 44 SHEL L- OML- 42 AGIP OML-63 CHEV RON- OML- 55 CHEV RON- OML- 52 CHEV RON- OML- 55 NDPC OML-66 AMNI OPL-237 SHEL L- OML- 79 SHEL L- OML- 40 SHELL-OML-1 SHEL L-OM L-11 SHEL L- OML- 23 SHEL L- OML- 17 SHEL L- OML- 20 SHE LL- OML -15 SHEL L- OML- 21 SHEL L- OML- 31 SHEL L- OML- 26 ELF-OML-56 NPDC-OML-65 NAOC-OML-61 CHEV RON- OML- 54 LAM ONT OPL- 207 SHEL L- OML- 30 SHEL L- OML- 38 ASHLA ND-OP L-118 CHEV RON- OML- 49 SHEL L- OML- 38 SHELL-OML-4 SHELL-OML-5 OPL-135 QUEE NS PETRO . NIG. LTD. OPL-228 EXPRES S PETR OML- 108 ATLA S- OPL- 75 OPL 239 ULTR AMAR OPL- 227 SHEL L- OML- 74 OPL-467 MOBIL-OML-68 MOBIL-OML-69 MOBIL-OML-67 SHEL L- OML- 14 MOBIL-OML-67 ELF-OML-101 ASA RIS OPL- 236 MAR EENA OPL 231 MOBIL-OML-70 ORIE NT- OPL- 224 ELF-OML-99 PEAK OPL-460 TEXA CO- OML- 86 IPEC-OPL-229 OPEN IBADA N OPL-303 OPL-305 OPL-901 (EQU ATOR IAL GUIN EA) CAVE NDIS H- OPL- 453MLM OPL-454 DUBRI-OML-96 TEXA CO- OML- 84 AGIP OML-63 CONSOL IDATED- OPL-113 SHE LL- OML -34 QIT CONSO LIDATE D-OPL- 458 To maintain the nation’s oil production capacity at 2.5 million bpd in 2013 and grow capacity to 3 million bpd by 2015 through maintaining the attractiveness of the sector to investment. To turn the country into an oil refining and products producing country for export and resolve the perennial fuel scarcity in the country. To build a viable and sustainable gas industry through expansion in domestic gas outlets rather than exports particularly electricity industry in which electricity generation and distribution capacity is planned to increase to 10,000 MW by 2013 and 20,000 MW by 2015 www.transcorpnigeria.com
- 10. The Federal Government of Nigeria has enunciated the following national aspiration for the Energy Sector AMAL GAM OPL- 452 COTONOU KRIBI TIKO SANTA ISABEL SHELL-OML-7 SUNLI NK- OPL47 4 OPL-310OPL-309 OPL-301 OPL-302 OPL-304 OPL-306 OPL-307 OPL-308 OPL-902 OPL-903 OPL-905 OPL-906 OPL-904 UMIC PACL AN- OPL- 204 ELF-OPL-447 OPL-201 SUM MIT INT.- OPL- 206 IPEC-OPL-202 SUPR A- OPL- 203 YINKA JAMES PET SUNLINK OBE KPA OPL- 241 SEA WOL F OPL- 907 OPL-315 AGIP OPL-211 ALLIE D-OP L-210 AGIP OPL-316 MOBIL-OPL-94NPDC-OPL-91 ELF-OPL-222 ELF-OML-100 ELF-OML-102 NORE AST- OPL- 215 STATOI L/BPX- OPL-213 OPL 242 OPL 244 OPL 245 OPL 246 OPL 247 SHEL L- OML- 25 SHE LL- OML -19 SHEL L-OM L-24 SHEL L- OML- 29 SHEL L- OML- 33 SHEL L- OML- 18 SHEL L- OML- 43 SHEL L- OML- 45 SHEL L- OML- 44 SHEL L- OML- 42 AGIP OML-63 CHEV RON- OML- 55 CHEV RON- OML- 52 CHEV RON- OML- 55 NDPC OML-66 AMNI OPL-237 SHEL L- OML- 79 SHEL L-OM L-40 SHELL-OML-1 SHEL L- OML- 11 SHEL L- OML- 23 SHEL L- OML- 17 SHEL L- OML- 20 SHE LL- OML -15 SHEL L- OML- 21 SHEL L- OML- 31 SHEL L- OML- 26 ELF-OML-56 NPDC-OML-65 NAOC-OML-61 CHEV RON- OML- 54 LAM ONT OPL- 207 SHEL L-OM L-30 SHEL L- OML- 38 ASHLA ND- OPL- 118 CHEV RON- OML- 49 SHEL L- OML- 38 SHELL-OML-4 SHELL-OML-5 OPL-135 QUEE NS PETRO . NIG. LTD. OPL-228 EXPRES S PETR OML- 108 ATLA S- OPL- 75 OPL 239 ULTR AMAR OPL- 227 SHEL L- OML- 74 OPL-467 MOBIL-OML-68 MOBIL-OML-69 MOBIL-OML-67 SHEL L- OML- 14 MOBIL-OML-67 ELF-OML-101 ASA RIS OPL- 236 MAR EENA OPL 231 MOBIL-OML-70 ORIE NT- OPL- 224 ELF-OML-99 PEAK OPL-460 TEXA CO- OML- 86 IPEC-OPL-229 OPEN IBADA N OPL-303 OPL-305 OPL-901 (EQU ATOR IAL GUIN EA) CAVE NDIS H- OPL- 453MLM OPL-454 DUBRI-OML-96 TEXA CO- OML- 84 AGIP OML-63 CONSOL IDATED- OPL-113 SHE LL- OML -34 QIT CONSO LIDATE D-OPL- 458 To maintain the nation’s oil production capacity at 2.5 million bpd in 2013 and grow capacity to 3 million bpd by 2015 through maintaining the attractiveness of the sector to investment. To turn the country into an oil refining and products producing country for export and resolve the perennial fuel scarcity in the country. To build a viable and sustainable gas industry through expansion in domestic gas outlets rather than exports particularly electricity industry in which electricity generation and distribution capacity is planned to increase to 10,000 MW by 2013 and 20,000 MW by 2015 www.transcorpnigeria.com
- 11. Government does not possess the capacity to deliver these aspirations on its own and is therefore seeking private sector participation to drive, fund, own and manage the transformation of the energy sector. This is where the opportunities is. AMAL GAM OPL-4 52 COTONOU KRIBI TIKO SHELL-OML-7 SUNLI NK- OPL47 4 OPL-309 OPL-301 OPL-302 OPL-304 OPL-306 OPL-307 OPL-308 OPL-902 OPL-903 OPL-905 OPL-906 OPL-904 UMIC PACL AN- OPL- 204 ELF-OPL-447 OPL-201 SUM MIT INT.- OPL- 206 IPEC-OPL-202 SUPR A- OPL- 203 YINKA JAMES PET SUNLINK OBE KPA OPL- 241 SEA WOL F OPL- 907 OPL-315 AGIP OPL-211 ALLIE D-OP L-210 AGIP OPL-316 MOBIL-OPL-94NPDC-OPL-91 ELF-OML-100 ELF-OML-102 NORE AST- OPL- 215 STATOI L/BPX- OPL-213 OPL 244 OPL 245 OPL 246 OPL 247 SHEL L- OML- 25 SHE LL- OML -19 SHEL L- OML- 24 SHEL L- OML- 29 SHEL L-OM L-33 SHEL L- OML- 18 SHEL L- OML- 43 SHEL L- OML- 45 SHEL L- OML- 44 SHEL L- OML- 42 AGIP OML-63 CHEV RON- OML- 55 CHEV RON- OML- 52 CHEV RON- OML- 55 NDPC OML-66 AMNI OPL-237 SHEL L- OML- 79 SHEL L- OML- 40 SHELL-OML-1 SHEL L-OM L-11 SHEL L- OML- 23 SHEL L- OML- 17 SHEL L- OML- 20 SHE LL- OML -15 SHEL L- OML- 21 SHEL L- OML- 31 SHEL L- OML- 26 ELF-OML-56 NPDC-OML-65 NAOC-OML-61 CHEV RON- OML- 54 LAM ONT OPL- 207 SHEL L- OML- 30 SHEL L- OML- 38 ASHLA ND-OP L-118 CHEV RON- OML- 49 SHEL L- OML- 38 SHELL-OML-4 SHELL-OML-5 OPL-135 QUEE NS PETRO . NIG. LTD. OPL-228 EXPRES S PETR OML- 108 ATLA S- OPL- 75 OPL 239 ULTR AMAR OPL- 227 SHEL L- OML- 74 OPL-467 MOBIL-OML-68 MOBIL-OML-69 MOBIL-OML-67 SHEL L- OML- 14 MOBIL-OML-67 ELF-OML-101 ASA RIS OPL- 236 MAR EENA OPL 231 MOBIL-OML-70 ORIE NT- OPL- 224 ELF-OML-99 PEAK OPL-460 TEXA CO- OML- 86 IPEC-OPL-229 OPEN IBADA N OPL-303 OPL-305 OPL-901 (EQU ATOR IAL GUIN EA) CAVE NDIS H- OPL- 453MLM OPL-454 DUBRI-OML-96 TEXA CO- OML- 84 AGIP OML-63 CONSOL IDATED- OPL-113 SHE LL- OML -34 QIT CONSO LIDATE D-OPL- 458 International oil companies are selling oil and gas assets to local and foreign companies, who are better placed to manage the community and security challenges in the Niger Delta. Government is trying out novel approaches to fund its share of the Joint Ventures with International Oil Companies. There is a surge in the advertisement for domestic gas projects (power, petrochemicals & fertiliser, including gas transportation) but each requires proper understanding and consideration in order to become opportunity. Government is at critical stage of concluding the partial / full privatisation of 11 government owned but ailing electricity generation and distribution companies, and announced plans to commence the privatisation of new 10 new IPPs built under the under National Integrated Power Projects scheme. There is expectation that private sector involvement in the improvement of the country’s domestic refining would soon materialise. www.transcorpnigeria.com
- 12. www.transcorpnigeria.com12 Nigeria Energy and Infrastructure Private Sector Opportunity
- 13. www.transcorpnigeria.com13 Nigeria Energy and Infrastructure Private Sector Opportunity Name of Power Plant Year Built Location Installed Capacity (MW) Available Capacity as of Feb. 2011(MW) Calabar Power Project Under Construction Calabar, Cross River State 563 Nil Egbema Power Project Under Construction Egbema, Imo State 338 Nil Ihovbor Power Project Under Construction Ihovbor, Edo State 451 Nil Gbaran Power Project Under Construction Gbaran, Bayelsa State 225 Nil Sapele Power Project Under Construction Sapele, Delta State 451 Nil Omoku Power Project Under Construction Omoku, Rivers State 225 Nil Alaoji Power Project Under Construction Alaoji, Abia State 961 Nil Olorunsogo –Phase-2 Project Combined Cycle under construction Olorunsogo, Ogun State 676 224 Omotosho-Phase-2 Project Under Construction Omotosho, Ondo State 451 Nil Geregu-Phase-2 Project Under Construction Geregu, Kogi State 434 Nil Total 4,775 224
- 14. There is therefore substantial opportunity for private sector partnership is key energy infrastructure projects in the country. AMAL GAM OPL- 452 COTONOU KRIBI TIKO SHELL-OML-7 SUNLI NK- OPL47 4 OPL-309 OPL-301 OPL-302 OPL-304 OPL-306 OPL-307 OPL-308 OPL-902 OPL-903 OPL-905 OPL-906 OPL-904 UMIC PACL AN- OPL- 204 ELF-OPL-447 OPL-201 SUM MIT INT.- OPL- 206 IPEC-OPL-202 SUPR A- OPL- 203 YINKA JAMES PET SUNLINK OBE KPA OPL- 241 SEA WOL F OPL- 907 OPL-315 AGIP OPL-211 ALLIE D- OPL- 210 AGIP OPL-316 MOBIL-OPL-94NPDC-OPL-91 ELF-OML-100 ELF-OML-102 NORE AST- OPL- 215 STATOI L/BPX- OPL-213 OPL 244 OPL 245 OPL 246 OPL 247 SHEL L-OM L-25 SHE LL- OML -19 SHEL L- OML- 24 SHEL L- OML- 29 SHEL L- OML- 33 SHEL L- OML- 18 SHEL L- OML- 43 SHEL L- OML- 45 SHEL L- OML- 44 SHEL L- OML- 42 AGIP OML-63 CHEV RON- OML- 55 CHEV RON- OML- 52 CHEV RON- OML- 55 NDPC OML-66 AMNI OPL-237 SHEL L- OML- 79 SHEL L- OML- 40 SHELL-OML-1 SHEL L- OML- 11 SHEL L- OML- 23 SHEL L- OML- 17 SHEL L- OML- 20 SHE LL- OML -15 SHEL L- OML- 21 SHEL L- OML- 31 SHEL L- OML- 26 ELF-OML-56 NPDC-OML-65 NAOC-OML-61 CHEV RON- OML- 54 LAM ONT OPL- 207 SHEL L- OML- 30 SHEL L- OML- 38 ASHLA ND- OPL- 118 CHEV RON- OML- 49 SHEL L- OML- 38 SHELL-OML-4 SHELL-OML-5 OPL-135 QUEE NS PETRO . NIG. LTD. OPL-228 EXPRES S PETR OML- 108 ATLA S- OPL- 75 OPL 239 ULTR AMAR OPL- 227 SHEL L-OM L-74 OPL-467 MOBIL-OML-68 MOBIL-OML-69 MOBIL-OML-67 SHEL L- OML- 14 MOBIL-OML-67 ELF-OML-101 ASA RIS OPL- 236 MAR EENA OPL 231 MOBIL-OML-70 ORIE NT- OPL- 224 ELF-OML-99 PEAK OPL-460 TEXA CO- OML- 86 IPEC-OPL-229 OPEN IBADA N OPL-303 OPL-305 OPL-901 (EQU ATOR IAL GUIN EA) CAVE NDIS H- OPL- 453MLM OPL-454 DUBRI-OML-96 TEXA CO- OML- 84 AGIP OML-63 CONSOL IDATED- OPL-113 SHE LL- OML -34 QIT CONSO LIDATE D-OPL- 458 Local companies are seeking joint venture partnership with competent foreign companies in the bids to acquire oil and gas assets in the Niger Delta. There has been some key successes in this area. NNPC has invited private sector participation in the funding key oil and gas assets. However, such projects are to be approached more cautiously. The is a huge opportunity for private sector partnership in the power sector (in the rehabilitation and operation of 11 privatised electricity generation and distribution companies, the acquisition of operation of 10 NIPP projects and development of new IPP projects). However, each of these opportunities needs to be considered on a critical tripod. Apart from the power projects, a whole list of possible infrastructural projects are floating in the industry at the moment, and it therefore becomes a matter of strategic alliances and positioning to seek maturation of these opportunities. www.transcorpnigeria.com
- 15. Transcorp Energy Brief Transcorp Energy Ltd is a wholly owned subsidiary of Transcorp Plc and is operator of the energy portfolio of Transcorp Plc Transcorp Plc currently has OPL 281. It assigned 40% of OPL 281 to EER/Sacoil. The oil block is expected to commence production by 2014, given the approval of the Production Sharing Contract by NNPC. Transcorp Energy is also leading an international consortium in the acquisition of 972 MW Delta (Ughelli) Power Plc, one of the 6 power generating plants being privatized by the Federal Government. The acquisition is expected to be completed by June 2013 and represents a significant step in the diversification of the energy portfolio of Transcorp Energy. Transcorp Energy is looking to expand it power generation capacity, and further integrate the energy value chain through opportunities in gas conversion projects and refining. www.transcorpnigeria.com15