Dr. David IgeNigerian National Petroleum Corporation

Tuesday May 4th, 2010

Gas Master-plan and the Future of Nigerian Oil and Gas Industry

Houston, Texas USA

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Nigeria’s Historical Gas Utilization and Forecast Potential Demand

Confronted with an unprecedented growth in domestic demand for gas, particularly from the power sector, it became evident that the structure of the Nigerian gas sector was not robust enough to respond to such step change in demand

Potential growth rate of 18-20% annually, compared with global average of 3-5%

THE NIGERIAN GAS MASTERPLANUnprecedented Demand Growth

THE GAS MASTERPLAN- 4 Step Plan

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THE GAS MASTERPLANKey Focus Areas –Performance Update

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Steady progress in creating a fully competitive gas sector in Nigeria

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GAS INFRASTRUCTURE UPDATEGas Infrastructure Blueprint

Appendix

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SUSTAINABLE COMMERCIAL FRAMEWORKSStatus of Commercial Framework Review

Commercial Framework

Domestic Supply Obligation

Pricing / Agreements (GSA/GTA)

Strategic Aggregator Incorporation &

Operations

World bank PRG Agreements

Ongoing review of DSOs

GSPA template agreement completed

Bilateral negotiation s to commence between buyer and supplier - target close out end May

GTA template draft ongoing contingent on Network Code development

Pricing review concluded

Aggregator company now incorporated

Commenced managing buyer/supplier issue and facilitating GSPAs

In the process of selecting escrow account for gas revenues

Secured World Bank Board approval for PRG in respect of gas to power revenues

Operationalizing of the PRG ongoing – WB mission due May 7th to address LC banks etc.

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Focus Areas of the Gas Master-Plan

Short/Medium Term Gas Availability

(Domestic Obligations)

Sustainable Commercial

Framework for Domestic Market

Scalable & Cost Effective Gas Infrastructure

Demand Stimulation

THE GAS MASTERPLANKey Focus Areas –Performance Update

DSO’s now in place

Short term gas for power – all time high gas supply

Process alignment for gas access – Strategic Aggregator company in place

Pricing review completed – on track for commercial pricing

World Bank securitization for power

Bankable GSPA/GTAs

Infrastructure blueprint adopted

CPF Investor bids under evaluation – end May completion

Pipeline contracts to be awarded

Syndicating anchor gas based industry investors

Strategic partnerships with Niger Delta States to enable expedited investments

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