Seven Energy Technical profile. Technical strengths

Transcription

1 Seven Energy Technical profile Technical strengths

2 Seven Energy Technical profile Seven Energy is an indigenous Nigerian oil and gas exploration, development, production and distribution company with a vision to become the leading supplier of gas to the Nigerian domestic market for power generation and industrial consumption. Seven Energy operates along the value chain from upstream exploration, appraisal, development and production assets; through to midstream activities comprising ownership of processing and distribution infrastructure, and marketing to end users. Key facts 200 MMcfpd gas processing facility 260 km network of gas pipelines 600 MMcfpd gas distribution capacity 354 MMboe 2P + 2C reserves and resources 51,600 bopd average gross oil production (2013) First commercial delivery of gas in January 2014

3 Technical overview Seven Energy has a track record of investment in and development of its technical capabilities. Since its establishment as an independent company in 2007, Seven Energy has invested over 160 billion ($1 billion) in oil and gas developments in Nigeria. The Group s business model is unique, as the Group owns, develops, produces and delivers gas to its customers in south east Niger Delta. In addition, it works closely with its partners on key oil development projects in both south east Niger Delta and north west Niger Delta. With the investments made to date, Seven Energy has built tremendous experience and expertise, particularly in terms of gas development projects in Nigeria, but also through oil projects. Through its various projects, the Group has gained valuable technical expertise and insight into reservoir, processing and pipeline engineering to the point of delivery to the Group s offtakers.

4 Seven Energy Technical profile Project experience We have developed extensive project experience through an active programme of construction, development and ongoing maintenance that has delivered, and continues to deliver, successful projects. Aba Ukanafun Legend Seven Energy marginal field areas Licence areas Seven Energy oil and gas fields Seven Energy gas pipeline Seven Energy gas pipeline (under construction) Seven Energy oil pipeline NGC gas pipeline 3rd party gas pipeline 3rd party gas pipeline (under construction) Seven Energy customer (power station) Seven Energy customer (industrial) Seven Energy customer (export terminal) Port Harcourt Ibom Power station Ikot Abasi Complete or near complete projects Ongoing or new projects under consideration Copyright Seven Energy 2014 Uquo to Ikot Abasi pipeline 62 km 18-inch gas pipeline Greenfield construction, undertaken from 2010 to 2011 First commercial deliveries of gas made in January 2014

5 62 km Uyo OML 13 Uquo Field Qua Iboe Terminal 128 km Uquo Gas Processing Facility 23 km 37 km Oron Stubb Creek Field OML 14 Stubb Creek Early Production Facility Calabar NIPP power station Calabar UniCem North 0 kilometres 40 East Horizon pipeline Acquired the completed 128 km 18-inch gas pipeline in Q In operation, delivering gas since 2012 Oron to Creek Town pipeline 26 km 24-inch gas pipeline, with construction expected to commence in 2014 Uquo to Oron pipeline 37 km 24-inch gas pipeline Greenfield construction, undertaken from 2013 to 2014 Pipe laying complete and pipeline due to be commissioned in 2014 Stubb Creek to Uquo pipelines 31 km 6-inch gas pipeline and 23 km 6-inch oil pipeline Greenfield construction, undertaken from 2010 to 2011 Stubb Creek Central Processing Facility 8,000 bopd capacity Greenfield construction, currently at design stage Uquo Gas Processing Facility Two Train gas processing facility, with total capacity of 200 MMcfpd (100 MMcfpd per Train) Greenfield development. Train 1 was commissioned in 2012, and Train 2 was commissioned in 2014 First commercial deliveries of gas made in January 2014 Uquo to Qua Iboe pipelines 8 km 4-inch oil pipeline from Uquo Gas Processing Facility to FUN Manifold (greenfield construction to 2011) 2 km 10-inch oil pipeline from FUN Manifold to ExxonMobil Qua Iboe export terminal (greenfield construction, to be commissioned in 2014) Stubb Creek Early Production Facility 2,000 bopd capacity Greenfield construction, completed in 2014 Commercial deliveries of oil to ExxonMobil s Qua Iboe export terminal to commence in 2014

6 Seven Energy Technical profile Technical expertise Over the years, the Group has built strong technical expertise from reservoir development to gas deliveries. Through the delivery of its leading-edge gas projects in south east Niger Delta, ongoing oil developments at the Stubb Creek and Uquo Fields, as well as its support to the development of OMLs 4, 38 and 41 via the Strategic Alliance Agreement with NPDC, Seven Energy has learnt and developed a wide range of technical capabilities to complement its experience. In particular, the Group has differential expertise in: gas reservoir appraisal and development; high-rate gas well drilling and completion design and implementation; gas processing; development and pre-project planning; project management (including project controls); gas plant design, construction and operations; and, pipeline design, construction and transportation. In support to NPDC, as part of the Strategic Alliance Agreement where Seven Energy serves as a technical and funding partner to NPDC on the development of OMLs 4, 38 and 41, the Group has also seconded to NPDC full-time geology, reservoir engineering and facilities engineering resources. Our technical capabilities include: Reservoir engineering Geology / geophysics Petrophysics Development engineering Reservoir management Drilling engineering Completions engineering Rig supervision Workover design Project engineering Process engineering Mechanical engineering Rotating equipment Electrical & Instrumentation (E & I) engineering Computer Assisted Design (CAD) Telecoms Project scheduling Cost engineering Cost control Operations management Production engineering Maintenance engineering Safety engineering Environmental engineering Quality engineering

7 Well re-entry and drilling Seven Energy has a track record of successful well re-entries and drilling. In 2013, Seven Energy re-commenced its drilling programme and concluded a successful workover and 35 MMcfpd well test on Uquo-4, as well as the drilling of large bore wells at Uquo-7 and Uquo-8ST. The results of the drillings have been in line with expectations and confirmed excellent characteristics of the reservoir. Since December 2013, the Uquo-2 and Uquo-4 gas production wells have been on-production. Future work plans on the Uquo Field include the completion of Uquo-7 and Uquo-8ST and drilling of further wells on identified prospects at the Uquo Field, including the Uquo-NE1 exploration well. Upon completion of the infrastructure required to deliver oil from the Stubb Creek and Uquo Fields in 2014, production will commence from the oil wells at these fields. Furthermore, additional exploration activities are planned over the next few years for OPL 905, located in the underexplored Anambra Basin, including acquisition of 2D and 3D seismic data and drilling of an exploration well. Recent well achievements Uquo Field Uquo-2 and Uquo-4 re-enter and complete as gas production wells Uquo-3 re-enter and complete as oil production well Uquo-7 and Uquo-8ST drill large bore wells Stubb Creek Field SC-2, SC-5, SC-6, SC-7 and SC-8 maximum efficiency rate (MER) tests OML 56 Amoji-1 re-entry and sidetrack Planned drilling activity Uquo Field Uquo-7 and Uquo-8ST complete as gas production wells Uquo-9 drill and complete Uquo-NE1 exploration well drill and test Stubb Creek Field Drill non-associated gas (NAG) appraisal well OPL 905 Drill exploration well (following acquisition and analysis of 2D and 3D seismic data)

8 Seven Energy Technical profile Project planning processes Key to Seven Energy s project successes are its detailed planning processes, which ensure effective project delivery. Effective pre-project planning is essential for successful project implementation. Seven Energy has developed and uses a 7PREP project planning process to help guide its projects from initiation to commissioning and operations. 7PREP Project planning process Project planning Project execution Project initiation Concept Front end engineering design (FEED) Detailed engineering Construction & completion Commis -sioning Operations Gate 1 Gate 2 Gate 3 Technical and management review Technical and management review Management review Final investment decision

9 Corporate governance Seven Energy is committed to developing and applying high standards of corporate governance. Seven Energy has established an effective corporate governance framework that adds value to its business, supports its reputation and ensures the Group s long-term continuity. The Group s approach to corporate governance is applied to the management of the business and in the Group s accountability to stakeholders as whole. Its policies and procedures, as implemented and in use throughout the business, guide its day-to-day operational and administrative activities in a transparent and sustainable way. These policies are based on international standards and benchmarks, such as: Quality Management: ISO 9001: 2008; 14001:2004; Anti-Corruption and Business Ethics: UK Bribery Act 2010, Foreign Corruption Practices Act 1977; Health & Safety and Environmental: OHSAS 18001, EGASPIN: 2002; Asset Protection: ISO 31000: 2009, VPSHR; and Corporate Social Responsibility: ISO 9001: 2008; 14001: 2004; World Bank and IFC Principles. For each policy, management systems are in place and utilised to provide more specific guidance, procedure and to act as a management tool. Seven Energy s reporting is in-line with International Finance Corporation (IFC) and Global Reporting Initiative (GRI) and other recognised international reporting standards.

10 Seven Energy Technical profile Capital support In support of its investment programme, Seven Energy benefits from a strong and supportive investor base. Investors 1 Others 31.6% 15.5% Other investors include: 15.4% 3.4% 13.4% ALAC Fund 3.1% 7.7% 9.9% Capital expenditure $million Seven Energy has made and continues to make significant investments in the development of its upstream and midstream assets. Its investments are supported by an internationally recognised investor base, combined with debt financing provided by a strong syndicate of local Nigerian banks. Note 1 As at 31 May 2014 and on a fully diluted basis (which comprises ordinary shares and irredeemable convertible loan notes, but excludes warrants, share options and convertible bond options)

11 The Seven Energy opportunity With its technical expertise and integrated business model, Seven Energy is well placed to act as a partner for further projects to develop Nigeria s vast oil and gas resources. Nigeria presents significant growth opportunities. With expected strong growth in domestic demand for gas and associated infrastructure developments, the market opportunity is particularly strong for gas. The combination of Nigeria s positive demographic changes, economic growth, highly attractive mature resource base combined with power sector reforms and the shift in focus by international oil companies towards offshore assets all contribute to the attractiveness of the region. Seven Energy s upstream and midstream strategy is to further develop these resources for the benefit of Nigeria. Underpinning the model is the Group s ongoing efforts to enhance existing reserves and resources, through investment into lower risk oil and gas exploration appraisal and development. With the Group s integrated business model, Seven Energy offers access to expanding new markets, as well as cost pricing advantages over non-vertically integrated companies. In addition, the Group seeks to work with upstream partners to monetise their production of gas, either through utilising Seven Energy s distribution capacity or through other developments of the gas resources.

12 Nigeria Seven Exploration & Production Limited 7 Anifowoshe Street Victoria Island Lagos Nigeria Tel: Accugas Limited 7 Anifowoshe Street Victoria Island Lagos Nigeria Tel: United Kingdom Seven Energy International Limited 4th Floor 6 Chesterfield Gardens London W1J 5BQ United Kingdom Tel: info@sevenenergy.com