1. Chevron’s Efforts in Flaring Reduction Charles ADENIJI General Manager Gas Marketing and Commercialization Chevron Nigeria Mid Africa SBU

2. Chevron Dedicated to Flare ReductionStrong Partner Role in GGFR • Chevron Nigeria Ltd. (CNL) committed to eliminating routine flaring for environmental and resource utilization benefits. • CNL production areas in Nigeria are in 3 clusters • Escravos - largest • Eastern operations • Funiwa Deepwater concessions - no production until 2008 • CNL flare reduction plan • Adopted a phased approach

3. Strategies • Identify gas market opportunities; evaluate alternatives and select one for development • Gather gas in proportion to the markets that have been identified • Develop appropriate infrastructure • Sell gas in the local and sub-regional markets - extracted LPG sold on the world market • Use latest gas downstream technology to convert gas to liquids (GTL)

4. Commercial Opportunities • Gas sales - Domestic market • EGP1 – production from largest offshore field-Okan • EGP2 – Sensitive areas - swamp fields • Gas-to-Liquids plant • Currently under construction in Escravos • EGP3 – addresses remaining offshore production • West African sub-regional market • FGN and JV power plants - EGP4 • CNL capability to process about 1 billion scfd

5. Other sources of flares • The Funiwa and the Eastern operations • Fields are small and geographically dispersed • Gas production volumes are small • Flare elimination plans • Re-injection • Broaden the project boundaries

6. Tendering and government approval process Complex legal and commercial agreements Labor disputes Security concerns Nigerian Content Directives. Keys to Flaring Reduction SuccessChallenges must be overcome

7. Significant Considerations in Project Execution • Security and the rule of law in operations areas • Impacts of Nigerian Content Directive on the timing, cost and schedule of flare elimination projects • Considerations for increasing infrastructural capacity in proportion to the size of the growing domestic gas market • Synergies between flare elimination and other gas development projects • Retain encouraging fiscal terms for flare reduction and other gas-related Strategic National Interest projects

8. Thank you Global Producer Global Supplier Global Partner