Chief Executive Officer’s Statementfor the year ended 29 February 2008

The financial year 2007/08, together with the period following theyear-end, represents a milestone in the evolution of Gasol. We haveconsiderably strengthened the Board and management team;completed the acquisition of 100% of African LNG and 75% of bothAfgas Infrastructure Limited andalliances with two major internationallargest integrated utility), and

08 Gasol plc Annual Report and Accounts 2008

largest integrated utility), andservices company); and have built upon our existing relationshipwith Afren

With these achievements in place, the Company is ideallypositioned to build a substantial business along the gas value chainand it is with pride that I present my first review asExecutive Officer.

“ With strong fundamentals in the gas andLNG business and key acquisitions, Gasolis now in a position to take its business tothe next level.”

Chief Executive Officer’s Statement

The financial year 2007/08, together with the period following theend, represents a milestone in the evolution of Gasol. We have

considerably strengthened the Board and management team;completed the acquisition of 100% of African LNG and 75% of both

Infrastructure Limited and Afgas Nigeria; established strategicalliances with two major international organisations, E.ON (Europe’slargest integrated utility), and Teekay Corporation (the marinelargest integrated utility), and Teekay Corporation (the marineservices company); and have built upon our existing relationship

Afren plc.

With these achievements in place, the Company is ideallypositioned to build a substantial business along the gas value chainand it is with pride that I present my first review as Gasol’s ChiefExecutive Officer.

“ With strong fundamentals in the gas andLNG business and key acquisitions, Gasolis now in a position to take its business tothe next level.”

“The past year has beena watershed for gasol;its acquisitions andpartnerships have ideallypositioned the Company tobuild a substantial businessalong the gas value chain.”

Gasol – an African gas play Our strategy is tohave been regarded as stranded; we have an initial focus on Nigeriaand Equatorial Guinea. Given the substantial reserves in this region,we see exciting growth opportunities. We intend to establish a seriesof partnerships involving gas gathering, liquefaction of natural gasand the shipment andworldwide. We are also exploring synergistic gas

The gas sector continuesto be attractive

We have completed someimportant acquisitions

worldwide. We are also exploring synergistic gasopportunities such as Liquefied Petroleum Gas (LPG) and Gas toLiquids (GTL).

The fundamentals of the gas markets and, within them, of LNG, arerobust. Global demand for gas and LNG is forecast to continue togrow and prices are expected to remain at their current high levelsfor the foreseeable future. Gasol is in prime position to take advantageof this market, due to our expertise and knowledge of the African gassector, where the aggregation of “stranded gas” discoveries nowrepresents a particularly attractive business opportunity.

During the period under review, Gasol acquired a 75% equity stakein Afgas Infrastructure Limited, which has development activities ingas aggregation and processing systems, and 75% ofLimited, whose activities are focused on gas infrastructure and othergas related activities in Nigeria. The combined cash consideration forthese acquisitions was £400,000.

Since the financial year end, Gasol has exercised its option to acquirethe remaining 80% of African LNG, a landmark development forGasol and its shareholders, providing the springboard from which wewill build a significant gas business in the Gulf of Guinea. AfricanLNG brings a combination of business opportunities at various stagesof development, relationships in the region, and a management teamwith significant experience in African oil and gas. The vendor, AfricanGas Development Corporation (“AFGAS”), and those acting inconcert with AFGAS, now hold approximately 63% ofshare capital.

Our strategy is to monetise gas reserves in Africa, which historicallyhave been regarded as stranded; we have an initial focus on Nigeriaand Equatorial Guinea. Given the substantial reserves in this region,we see exciting growth opportunities. We intend to establish a seriesof partnerships involving gas gathering, liquefaction of natural gasand the shipment and regasification of LNG into high-value marketsworldwide. We are also exploring synergistic gas monetisationworldwide. We are also exploring synergistic gas monetisationopportunities such as Liquefied Petroleum Gas (LPG) and Gas toLiquids (GTL).

The fundamentals of the gas markets and, within them, of LNG, arerobust. Global demand for gas and LNG is forecast to continue togrow and prices are expected to remain at their current high levelsfor the foreseeable future. Gasol is in prime position to take advantageof this market, due to our expertise and knowledge of the African gassector, where the aggregation of “stranded gas” discoveries nowrepresents a particularly attractive business opportunity.

During the period under review, Gasol acquired a 75% equity stakeInfrastructure Limited, which has development activities in

gas aggregation and processing systems, and 75% of Afgas NigeriaLimited, whose activities are focused on gas infrastructure and othergas related activities in Nigeria. The combined cash consideration forthese acquisitions was £400,000.

Since the financial year end, Gasol has exercised its option to acquirethe remaining 80% of African LNG, a landmark development forGasol and its shareholders, providing the springboard from which wewill build a significant gas business in the Gulf of Guinea. AfricanLNG brings a combination of business opportunities at various stagesof development, relationships in the region, and a management teamwith significant experience in African oil and gas. The vendor, AfricanGas Development Corporation (“AFGAS”), and those acting inconcert with AFGAS, now hold approximately 63% of Gasol’s issuedshare capital.

Annual Report and Accounts 2008 Gasol plc 09

Chief Executive Officer’s Statementcontinued

We are actively developing key relationships and alliances withcompanies along the gas value chain in order to progress our businessdevelopment activities.

Gasol’s strategic relationship withright of first refusal to purchase gasnumber of small

We have made good progress in ourorganic business development

Upstream – Alliance with Afren plc

10 Gasol plc Annual Report and Accounts 2008

Gas aggregation and monetisation – Nigeria

Gas infrastructure and monetisation –Equatorial Guinea

Heads of Agreement for floating LNG– Teekay Corporation

We have strengthened our team

number of smallsigned Production Sharing Contracts for blocks OPL 907 and 917 inthe gas richAkukwa gas and condensate discovery while OPL 917 contains theIgbariam gas and oil discovery.

In Januarywith AfrenaccessibilitySouth Easternmonetise gas for domestic and export purposes, in line with the FederalGovernment of Nigeria’s Gas Master Plan and are working to evaluatethe opportunity, focusing upon, inter alia, upstream data, and the costof infrastructure development, the capacity of and technology to beused in any potential liquefaction facility, and the location of facilities.

Gasol’s strategic relationship withwork withGuinea, under a joint venture agreement tooffshore. During the year under review,under this Joint Venture (subject to consent fromnecessary approvals) to sell and market gas to African LNG.

In April, Gasol and African LNG signed important Heads ofAgreement withLNG carriers and other marine energy transportation and productionvessels, to develop LNG capacity using floating LNG technologies.

One of myin order toof skill and

In this respect,Non-Executive

Chief Executive Officer’s Statement

We are actively developing key relationships and alliances withcompanies along the gas value chain in order to progress our businessdevelopment activities.

strategic relationship with Afren plc – which includes ourright of first refusal to purchase gas – provides access to a significantnumber of small-scale gas reserves in Africa. In March 2008, Afrennumber of small-scale gas reserves in Africa. In March 2008, Afrensigned Production Sharing Contracts for blocks OPL 907 and 917 inthe gas rich Anambra basin area of Nigeria; OPL 907 contains the

gas and condensate discovery while OPL 917 contains thegas and oil discovery.

2008, African LNG entered into a cooperation agreementand E.ON Ruhrgas AG to investigate the availability and

accessibility of gas in Nigeria, with a focus on the Anambra Basin andEastern regions. The parties intend to develop, collect and

gas for domestic and export purposes, in line with the FederalGovernment of Nigeria’s Gas Master Plan and are working to evaluatethe opportunity, focusing upon, inter alia, upstream data, and the costof infrastructure development, the capacity of and technology to beused in any potential liquefaction facility, and the location of facilities.

strategic relationship with Afgas provides an opportunity towork with Sonagas, the state-owned gas company of EquatorialGuinea, under a joint venture agreement to monetise gas locatedoffshore. During the year under review, Afgas assigned its rightsunder this Joint Venture (subject to consent from Sonagas and othernecessary approvals) to sell and market gas to African LNG.

In April, Gasol and African LNG signed important Heads ofAgreement with Teekay Corporation, which owns and operatesLNG carriers and other marine energy transportation and productionvessels, to develop LNG capacity using floating LNG technologies.

my first tasks following my appointment was to ensure that,deliver our strategy, Gasol had access to the highest levels

and experience.

respect, we are delighted to welcome Theo Oerlemans asExecutive Chairman of Gasol. Theo spent almost 40 years

with Shell, developing and managing international gas projects,and has extensive West African experience. Theo himself hasalready reported on some of our other key appointments, includingthe appointment of Rachel English as Chief Financial Officer,which have significantly strengthened the quality and calibreof the Gasol Board.

Attracting and retaining high quality staff is vital to our businesssuccess. Our acquisition of African LNG has already endowed uswith a readyin the gas industry and in African LNG in particular, and we willcontinue to build our management team in line with our businessgrowth and strategy. Important additions to our senior team includeMiles Thomas, appointed Company Secretary in June 2008, andMike Burdon, who joined as Commercial Director of African LNG.Miles has experience advising on banking, corporate and projectfinance transactions at Latham & Watkins and White & Case. Mikewas formerly head of the London LNG practice at Poten & Partners.

Outlook and challenges The year aheadLNG businessto take its businessthe various projects

However, we are building a business with longcapital requirements, and dependencies on host government policies,which means we also have various challenges to overcome. Theseinclude the increasing capital cost of projects, which has delayedseveral projects worldwide and the intensified competition fromenergy majors and sovereign states in the race for gas assets andenergy security.

Gasol has an innovative business model and, with its strategicdifferentiators as a niche player, is wellchallenges, convert its opportunities into successes and delivervalue to shareholders.

Soumo BoseChief Executive Officer

with Shell, developing and managing international gas projects,and has extensive West African experience. Theo himself hasalready reported on some of our other key appointments, includingthe appointment of Rachel English as Chief Financial Officer,which have significantly strengthened the quality and calibreof the Gasol Board.

Attracting and retaining high quality staff is vital to our businesssuccess. Our acquisition of African LNG has already endowed uswith a ready-formed team of professionals, considerably experiencedin the gas industry and in African LNG in particular, and we willcontinue to build our management team in line with our businessgrowth and strategy. Important additions to our senior team includeMiles Thomas, appointed Company Secretary in June 2008, andMike Burdon, who joined as Commercial Director of African LNG.Miles has experience advising on banking, corporate and projectfinance transactions at Latham & Watkins and White & Case. Mikewas formerly head of the London LNG practice at Poten & Partners.

ahead is promising; with strong fundamentals in the gas andbusiness and key acquisitions in place, Gasol is now in a position

business to the next level. We expect to see good progress inprojects and opportunities being pursued by the Company.

However, we are building a business with long-term horizons, largecapital requirements, and dependencies on host government policies,which means we also have various challenges to overcome. Theseinclude the increasing capital cost of projects, which has delayedseveral projects worldwide and the intensified competition fromenergy majors and sovereign states in the race for gas assets andenergy security.

Gasol has an innovative business model and, with its strategicdifferentiators as a niche player, is well-placed to meet thesechallenges, convert its opportunities into successes and delivervalue to shareholders.

Soumo BoseChief Executive Officer

Annual Report and Accounts 2008 Gasol plc 11