Chevron

1
Chevrons 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
Keys to Flaring Reduction SuccessChallenges must
be overcome

• Tendering and government approval process
• Complex legal and commercial agreements
• Labor disputes
• Security concerns
• Nigerian Content Directives.

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
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