Professional Documents
Culture Documents
Infrastructure
...a private sector approach
Wale Tinubu
Oando PLC
1
Outline
1.0 Background
Nigerian Gas Industry
2
Background
Nigeria, has the worlds 7th largest proven reserves of gas with 182
TCF already discovered
The gas is rich in natural gas liquids and have little or no sulphur
Over the years, there has been a steady growth in reserves with
recent discoveries coming from the deepwater basin
To date, all gas discoveries in Nigeria have been incidental;
resulting from the search for oil
There is a significant potential for reserves growth with focused gas
exploration
The reserve potential has been put at up to 600TCF which will make
Nigeria the 4th largest gas reservoir after Russia, Iran and Qatar
Nigeria currently flares 35 - 39% of total gas exports
Put another way, the gas flared in Nigeria is sufficient to generate 15GW
of electricity; this in a country with 6GW of installed and only 3GW of
available power generation.
3
Nigerias Gas Sector is predominantly government-controlled
4
The government-led investment in domestic gas
infrastructure is no longer adequate
6
Power heavy (cheap) mix in domestic gas market limits the ability to
recover capital leading to limited private investment
TYPICAL GAS SECTOR FLOW OF FUNDS NIGERIAN GAS SECTOR FLOW OF FUNDS
Consumer
Consumer
Government Grants
Return on Investment
Gas Liquefaction
Production Plant Shipping
Gas Pipelines
Processing Receiving
LNG Terminal
Power
Transmission
Source: Nexant
8
and also sub-optimizing potential for local job creation
Investment Required
processing or construction)
Plastics
Processing
Power
Lo Hi
Employment Created
Sources: Nexant, Oando
9
The government policy has now approved policy instruments that
seeks to
Exploit the Nigerian gas reserve potential for accelerated
economic development
In support of the 10% GDP growth aspiration
Concurrent focus on domestic and export market
Develop an integrated infrastructure strategy that will support
domestic, regional and export (LNG) markets
The adoption of an infrastructure investment blue print
Implement a gas pricing regime that favors local value added
projects (Methanol, Urea and Gas to Liquids)
Ensure commerciality for all investments
Set aggressive goals with buffers to offset potential delays and
possible problems
Encourage the private sector to drive the developments
4E East Loop Onshore East 188 /56 3500 Main Supply to Calabar CPF and the North
4W East Loop Onshore West 56 3000 Supply to Bonny from the East Onshore
5W East Loop Offshore West 209 /42 1700 Supply to Bonny from East offshore
11 Shagamu to Jebba 265 / (24,22) 390 Secure supply to Ogun, Osun, Oyo and Kwara
ELOPS Escravos to Lagos 200 / 42 1250 Supply to Lagos via secure offshore route
Offshore
A Escravos 2395 2010 Serves North and West. Several phases of expansion, 2bcfd by 2012
B Ob-Ob 1700 2010 Servers North and West. Several Phases of expansion.
2 13
Oando intends to play in four specific opportunities
2 3
Calabar to Ajaokuta
Total 365
Total 4,500
Source: IHS Gas Master Plan
2 15
Oando Gas and Power a local gas company
Oando Plc
Marketing Supply and Gas (Pipeline Energy Exploration and Refining Power
No. 1
Trading Transmission of Services Production New Build A Significant
marketer of Dominant
Natural Gas) Offering Assets option play
Petroleum local player 20-year BOT Product Acquisition for Oando
Products Franchise service lines and
Expansion
Agreement through Monetization
into other
with NGC strategic
West African
alliances
Markets New Industrial (e.g. Baroid,
customer Halliburton)
connects
Further
pipeline
expansion into
un-served
markets
6 17
Oando is positioned to capture maximum value along the entire energy
chain and harvest synergies between subsidiaries
Energy
Services
Gaslink / Power
East Horizon
Synergies 18
Thank you
http://www.oandoplc.com
6 19