Financing Issue for Oil and Gas Projects in the Gulf Of Guinea Region

Indigenous Operators Perspective

A Paper Presented By: Chief Tunde J. Afolabi, MFR Managing Director/CEO Amni International Petroleum Development Company Limited

Gulf of Guinea Region

Fig 1

Gulf of Guinea Countries

1. 2. 3. 4. 5. 6. 7. 8. 9. Senegal Guinea Liberia Cote dIvoire Ghana Togo Benin Nigeria Cameroon

10. Gabon 11. Congo 12. Sao Tome & Principe 13. Angola

Fig 2

Countries that have discovered Oil & Gas in Substantial Quantities

S/N

COUNTRY

POPULATION (million)

GDP $MM

1 2 3 4 5 6 7 8

Nigeria Angola Republic of Congo Equitorial Guinea Cameroon Gabon Benin Republic Ghana

135.03 12.26 3.80 0.55 18.06 1.45 8.08 22.93

294,800 80,950 19,070 25,690 40,010 20,090 12,180 31,320

Fig 3

Gulf of Guinea Countries Crude Oil Reserve Estimates

40.0 36.220 35.0

30.0

25.0

billion barrels

20.0

15.0

10.0

9.035

5.0 2.000 0.0 Nigeria Angola Gabon Congo Equatorial Guinea Cameroon Ghana Benin 1.600 1.100 0.200

0.015

0.008

Countries

Fig 4

Gulf of Guinea Countries Gas Reserve Estimates

182
10

Reserves in TCF

3.75 3.08

2 1.36 1 1.23 1.15 0.81 0.01 0 Nigeria Cameroon Congo Angola Eqt.Guinea Gabon Ghana Benin

Fig 5

Oil & Gas Companies in the GoG

1. 2. 3. 4. 5. 6. 7. 8. 9. ExxonMobil Chevron Shell TOTAL CNOOC SINOPEC AMERADA ANARDAKO MARATHON

10. ADDAX 11. DEVON 12. TULLOW 13. ROC OIL 14. AFREN 15. NOBLE ENERGY
Fig 6

Typical Offshore Environment

Fig 7

Breakdown of Spending in Oil & Gas Industry

Development 30%

Production 40%

Exploration 30%

Fig 8

Breakdown of Spending in Oil & Gas Industry

Engineering 4.3% Field Infrastructure 12.9% Production 28.6%

Production Exploration
Drilling Activities 25.7%

Development

Seismic Activities 7.1%

Drilling Activities 21.4%

Fig 9

Drilling Activities: Tangibles

Fig 10

Drilling Activities: - Intangibles

Fig 11

Production Activities

Fig 12

Gulf of Guinea Countries Daily Crude Oil Production

3,000

2,500
Production in thousands of barrels per day

2,000

1,500

1,000

500

Nigeria 2,630

Angola 1,260

Eqt.Guinea 396

Gabon 266

Congo 282

Cameroon 83

Ghana 8

Benin 0

Fig 13

Nigerian Association of Indigenous Petroleum Explorers and Producers (NAIPEC)

Member Companies Amni International Petroleum Development Company Limited Atlas Petroleum International Limited Cavendish Petroleum Nigeria Limited Conoil Producing Limited Emerald Energy Resources Limited Express Petroleum & Gas Company Famfa Oil Limited Moni Pulo Limited NorEast Petroleum Nigeria Limited Oriental Energy Resources Limited Peak Petroleum Industries Limited Solgas Petroleum Limited South Atlantic Petroleum Limited Yinka Folawiyo Petroleum Company Limited Zebra Energy Limited
Fig 14

s/n 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Nigerian Association of Indigenous Petroleum Explorers and Producers (NAIPEC) Members with Discoveries
s/n 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Member Companies Amni International Petroleum Development Company Limited Atlas Petroleum International Limited Cavendish Petroleum Nigeria Limited Conoil Producing Limited Emerald Energy Resources Limited Express Petroleum & Gas Company Famfa Oil Limited Moni Pulo Limited NorEast Petroleum Nigeria Limited Oriental Energy Resources Limited Peak Petroleum Industries Limited Solgas Petroleum Limited South Atlantic Petroleum Limited Yinka Folawiyo Petroleum Company Limited Zebra Energy Limited
Fig 15

Nigerian Association of Indigenous Petroleum Explorers and Producers (NAIPEC) Producing Members
s/n 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Member Companies Amni International Petroleum Development Company Limited Atlas Petroleum International Limited Cavendish Petroleum Nigeria Limited Conoil Producing Limited Emerald Energy Resources Limited Express Petroleum & Gas Company Famfa Oil Limited Moni Pulo Limited NorEast Petroleum Nigeria Limited Oriental Energy Resources Limited Peak Petroleum Industries Limited Solgas Petroleum Limited South Atlantic Petroleum Limited Yinka Folawiyo Petroleum Company Limited Zebra Energy Limited
Fig 16

Funding Strategy
a. Technical Partners

b. Debt from Banks

c. Capital Market; Equity Finance

d. Funds from Balance Sheet

Fig 17

Indigenous Companies and their Technical Partners over time

Indigenous Companies Amni International Petroleum OPLs 469, 237 Alfred James Petroleum OPL 301 Yinka Folawiyo Petroleum OPL 309 Express Petroleum OML 108 Cavendish OML 110 South Atlantic OPL 246 NOREAST OPL 215 Moni Pulo OML 114 Atlas Petroleum OML 109 Peak Petroleum OML 122 Famfa Oil OPL 216 Technical Partners over Time Abacan TOTAL Afren Abacan Abacan Syntroleum etal Chevron Conoco Conoco TOTAL TOTAL Baker Hughes Sapetrol Nexen Mart Resources Texaco/Chevron
Fig 18