Cape VI 6th African Petroleum Congress and Exhibition, Abuja, 15th -17th March

“Enabling Gas Projects in Africa - LNG”

Babs OmotowaMD/CEONigeria LNG

$10,325.6 62 GW

$42,732.6 177 GW

$3,203.3 6.1 GW

$12,509.5 35 GW

$36,194.4 293 GW

$3,198.7 29 GW

Ethiopia $573.6 2.5 GW

South Africa $1,721.6 45 GW

World - Energy and GDP per Capita

Higher energy Intensity level corresponds to higher GDP per capita GDP/Capita

Power Generation

NASA

Africa total is 143 GW

Africa - Energy Crisis

75% of Africa in darkness (lowest GDP) … France alone produces equivalent of Africa’s total generation

Energy – Gas Fastest Growing

Cheapest Fossil Fuel Abundant for centuries Cheaper and Efficient Security of supply Flexibility via Pipeline,

LNG/NGLs.

Power Industries -

Petrochemical, LNG, GTL Cooking and heating Transport

SA485

Shale - tcfAlgeria

231

Libya290

Africa has Gas

Africa consumes ~50% of gas produced

Gas projects can help reduce the power problem in Africa.

>1500km, LNG cheaper

LNG is faster to put in place

Pipeline prone to sabotage

Limited environment issues

Gas Transportation

Equatorial Guinea

22 mtpa40.4 mtpa

30.15mtpa

5.2mtpa

12.2 mtpa2.3 mtpa

10 mtpa

20 mtpa

3.7 mtpa4.4 mtpa

Algeria

Libya Egypt

Angola

Nigeria

Mozambique

Tanzania

Current Capacity

Planned Capacity

Africa LNG Plants

Africa Exported 36.6MT (70MT Capacity) in 2014 (15% of Global)

FDI key for project financing in Africa which runs into billions of dollarsFDIs to Africa has ranged between 4 and 5% (i.e. ~$50billion) of total global investmentsInstitutional & regulatory environs still a challenge

Attracting investments

Case Study – Nigeria LNG Limited

• $7billion in FDI from 1995 • $90bln revenue (so far)• $19bln Asset base (FDI) - 6 Trains, 23 Ships• 4th largest LNG plant in the world

Critical Success Factors• Stability • Independence • Technical depth• Governance • Financial capacity

Time to invest – EPC cost

EPC costs grew as oil price increased

Time to Invest – Raw materials

Price of iron ore at T3 FID Price of iron ore now similar level as at T3 FID

Conclusion

12

Gas can play big role in development of AfricaThis requires huge investment and conducive environmentNLNG is a successful modelNow is the time to invest – The world will not wait for us