Review of NnwaDoro (OML 109) screening work to NAPIMS by Statoil March 2004

1. Review of NnwaDoro (OML 109) screening work to NAPIMS by Statoil March 2004

2. License Map

3. NnwaDoro - The key to monetise gas and unlock oil for Nigeria’s southern deepwater area OPL 216 OPL 217 OPL 218 OPL 219 OPL 220 NGOLO AGBAMI NNWADORO BOLIA/CHOTA Gas: 6 BILAH Gas:10 – 15 tcf Oil:1-2 bn bbls OPL 246 AKPO Gas: 5 – 10 tcf ? Oil: 2 –5 bn bbls ? SOUTHERN RIM JDZ

4. Background • Nnwa discovered in 1999. Same structure drilled as Doro in the adjacent OPL 219 same year. Nnwa-2 Appraisal drilling 2002 • Partners in OML 109 (OPL 218) Statoil (Operator) and ChevronTexaco • Partners in OPL 219 Shell (Operator), ExxonMobil, Total and Agip • Water depth 1400 meters, main reservoir fluid is dry gas • Floating LNG evaluated by both Operators to be possibly the most promising concept for commercialising of the Nnwa Doro gas resource in 2002 • MoU signed in June 2002 terminated Dec 2003 • Upstream and Mid stream scoping work 2004 by OML 109 • Upstream 20 wells and sub sea production system • Midstream FLNG and onshore LNG

5. Design Basis - Arrival Conditions • Feedstock flowrate: 920 mmscf/d • ~17 year on plateau • ~9 years on decline • Arrival conditions: • Space will be provided for future re-compression • Operating range: 50 – 100% of design throughput

6. NnwaDoro FLNG concept FLNG cap Gas prod : 920 mmscf/d LNG : 5,77 MTA LPG: 0,30 MTA Cond Prod: 35 kbpd Hull Storage LNG: 240 000 m3 LPG: 80 000 m3 Cond: 120 000 m3

7. Layout Summary

8. NnwaDoro FLNG concept (450m x 76m) CHOKE MODULE INLET/GAS TREATMENT MODULE FLARE RISERS LIQUEFACTION MODULE CHEMICAL TOTE TANKS & INJECTION SKID FRACTIONATION MODULE LAYDOWN AREA FIRE/BLAST WALL POWER GENERATION MODULE (5 + 1) LAYDOWN AREA OFFLOADING TANKER LIVING QUARTERS OFFLOADING AREA UTILITY/ELECTRICAL EQUIPMENT MODULE WORKSHOPS

9. Topside FLNG Weights

10. Steel Hull issues • The hull concept design is based on: • Double hull used for ballast water • Double deck areas (dry voids) • Steel deck fully insulated over full deck area for process modules • LNG tanks of either the membrane or SPB type • LPG tanks non-pressurised fully refrigerated design • Living Quarters for 200 persons at the aft end of the hull • NnwaDoro topside footprint/ topside area requirement dictate the size of the hull • Flare is positioned at the bow

11. NnwaDoro FPSO concept and onshore LNG plant Offshore FPSO cap Gas prod : 967,5 mmscf/d Cond Prod: 32 kbpd Storage Cond: 159 000 m3 Onshore plant cap Gas prod : 920 mmscf/d LNG : 5,63 MTA LPG: 0,34 MTA Cond Prod: 4 kbpd

12. C5+ C4 C3 LNG plant Layout • Tank farm cap • 2 x 150,000 m3 LNG tanks • 1 x 50,000 m3 Propane tank • 1 x 50,000 m3 Butane tank • 1 x 36,000 m3 condensate tank • Infrastructure for surrounding districts, e.g. roads / township / civil amenities /airport / etc. is excluded from the present scope

13. Cost and scheduleAssumptions • ESTIMATE ASSUMPTIONS • The estimate is prepared in USD mid 2004 values • Basis for the estimate are the update of results from technical studies in the MoU phase

14. CAPEX estimates – Scoping concepts

15. Price expectations Feb 2005 The current market assumes that the US natural gas prices in real terms will move towards 4,00 05USD/MMBtu by 2010

16. Nigeria block 218 – NnwaDoroAssumptions • Condensate sales price: • $25 ‘04/bbl ’04 • LNG sales price: • $4,0 ’04/mmbtu, Henry Hub • Regas tariff $0,55/shipping tariff $0,50  FOB price = $2,95 ’04 • Propane sales price: • $217,4 ‘04/t • Butane sales price: • $216,0 ’04/t • Inflation: • 2,5% • Discount rate: • 10% nominal • All values given as 100% project, un-risked

17. Nigeria block 109 – NnwaDoroAssumptions • No abandonment cost included for midstream (useful life of asset longer than assumed production period) • For upstream; condensate volumes treated according to oil terms, gas volumes according to new gas terms. Cost split according to relative shares of total volumes. • Export pipeline treated as subsea cost (VAT/import duty) in upstream

18. NnwaDoro cases - results

19. Summary • Need to negotiate gas PSC and pre-unit agreement to be able to move project forward • Gas PSC and pre-unit necessary must be in place before embarking on further appraisal drilling • Statoil is prepared to take the leadership and fast track the NnwaDoro project • Technical Feasibility has been demonstrated • Reduced sub surface uncertainty and increased reserve basis is a requirement for moving forward • US market is the key target

20. Way Forward • Exploration drilling • Appraisal drilling ongoing • FLNG MoU phase • OML 109 data trade (no success towards OPL 219 and OPL 246) • OML conversion • Re-processed seismic • Subsurface evaluation OML 109/ OPL 219 (ongoing) • Negotiate gas PSC/ pre-unitisation agreement (gas terms)/ Joint operating agreement • Prepare NnwaDoro assessment plan and budget • Drill appraisal wells • Subsurface evaluation • Concept evaluation • Establish commercial structure/terms • Concept selection • FEED • Finalise commercial agreements and fiscal terms • Sanction (FID) • Construction and pre-drilling phase • Production start

21. Current OML 109 Long term development plan 2010 2011 2012 2005 2006 2007 2008 2009 2004 • Gas terms • Gas PSC/Pre unit agreement • Subsurface Evaluation • Phase 1 & 2 • Appraisal Drilling ( 2-3 wells) • Phase 3 • Conceptual evaluation • Concept selection • PRE-FEED & FEED • Commercial Structure/unitisation • Sanction (FID) • Construction and pre-drilling phase • Production start • Keys to delivery • Negotiate gas PSC • Partner alignment • Sufficient reserves • Cost effective concept Scoping work ITT process ITT process