Expand boundaries : Gulf of Guinea experience

1
Expand boundaries Gulf of Guinea experience

• Thierry MONMONT

2
Cameroon The global picture

• An historic oil producer
• Mainly from Rio del Rey, starting 1977.
• Production peaked at 180 kbopd in 1986, current
  80 kbopd.
• No valorization of associated gas, about 3 MMm3/d
  flared today
• Cameroon National Gas Strategy (2005)
• Reduction of flaring
• Gas supply for domestic use (mainly for power
  plants)
• Liquids extraction (C5, LPG)
• Dry gas export to Equatorial Guinea LNG plant
• Boost exploration activities

3
Cameroon gas within the regional picture
NLNG (start-up 1999, 30 MMt/y 2012) Brass (under
preparation,10 MMt/y 2011) Okolola (under
preparation,11 MMt/y 2011)
Nigeria

• RESOURCES (TCF)
• Nigeria 130 200
• Cameroon 2.5 6
• Equatorial Guinea 6 10

S
a
n
d
y
g
a
s
6
0
k
m
EGLNG supports the Cameroon Gas Project by
monetising gas and therefore allows flare
reduction
Equatorial Guinea
Bioko (Start-up 1Q07, T13.7 MMt/y, T2 2011?)
From various sources (Woodmac, Cedigaz, )
4
The Cameroon Gas Project today
CAMEROON
GAS (
Tcf
)
Reserves
/
Resources
2.2 to 3.9
North
North
(Rio Del Rey)
(Rio Del Rey)

Rio Del Rey 1.2 to 2.4


Sanaga/
Kribi
1 to 1.5
Sanaga/
Kribi
1 to 1.5
Limbe
Hub
Limbe
Hub
Alba
Alba
NIGERIA
Exploration
Potential
(n.r) 1 to 5
Exploration
Potential
(n.r) 1 to 5
?
?
200 to 250 MMSCFD
200 to 250 MMSCFD
200 to 250 MMSCFD
EQUATORIAL GUINEA
EQUATORIAL GUINEA
LNG PLANT BIOKO ISLAND
LNG PLANT BIOKO ISLAND
T1 3.7
Mtpy
/
mid
07
T1 3.7
Mtpy
/
mid
07
South
South
T2 4.4
Mtpy
/ 2011
-
2012 ?
T2 4.4
Mtpy
/ 2011
-
2012 ?
(Sanaga/
Kribi
)
(Sanaga/
Kribi
)
Feed
Gas
T1T2 1250 MMSCFD
Feed
Gas
T1T2 1250 MMSCFD
(
Of
which
ALBA 510 MMSCFD
)
(
Of
which
ALBA 510 MMSCFD
)
Limbe hub functions Supply local market
gas for power, LPG
condensates Export dry gas to Equatorial Guinea
5
Equatorial Guinea situation

• LNG plant (T1) on stream 1Q 2007.
• On-going engineering studies for train T2.
• On-going talks with Cameroon Nigeria to secure
  gas supply for T2 and further trains.
• MoU Nigeria/Eq Guinea early 2006
• MoU Cameroon/Eq Guinea early 2006
• HoA Nigeria/Eq Guinea december 2006

6
Short term Cameroon Gas Project planning
7
Project impact on Rio del Rey flaring
AG production
5
4
3
MMsm3/d
2
Mini case
Maxi case
1
0
2008
2010
2011
2012
2013
2014
2005
2006
2007
2009
2015
2016

• In 2011, associated gas production will range
  between 1 and 3 MMsm3/d.
• The project will significantly reduce the
  potential flaring of associated gas, by at least
  50

8
Project challenges

• Complex project
• Multi countries
• Multi players
• Dispersed gas resources with impact on technical
  cost
• But
• All stakeholders committed to gas flaring
  reduction
• Good momentum among stakeholders to take
  advantage of regional international
  opportunities

9
Conclusions

• The development of a successful Cameroon Gas
  Project requires
• a regional approach instead of national approach
  to gas flaring reduction
• an appropriate fiscal legal frame work
• a pragmatic technical and commercial approach
  between the stakeholders