EGBAOMA GAS PLANT PROJECT REPORT

FEBRUARY 2015

GAS TRAIN LIMITED

• We achieved some major milestone during the period under review. HAZOP was held between 17th and 24th December, 2014. Final HAZOP report has been forwarded to EPC Contractor to update the PFDs

and P&IDs. The overall progress is now 17.79% against a planned 22.74%. Engineering has progressed from 48.87% in December, 2014 to 57.55% in

January, 2015 as against a planned 62.22%. Procurement of long lead items has commenced.

As at the end of January, 2015, the progress in procurement is now 35.38% against a planned of 35.07%.

Fabrication of some of the equipment is in progress at the EPC Contractor’s fabrication yard in Dubai.

EPC contractor has awarded a sub contract to a local firm for the construction of the condensate tanks.

The sub-Contractor has commenced the civil design for the tanks and is preparing to mobilize to site in February.

EXECUTIVE SUMMARY

• The preparation to set up a camp at the project site for accommodation and offices to take care of Personnel during construction is ongoing.

• As at the end of January, 2015, we have received six (6) invoices from EPC contractor. four (4) invoices amounting to $3.92M are due. We have paid the dollar portion of both the 1st and 2nd invoices amounting to $1.69M. The payment of dollar portion of invoices 3 and 4 is being hamper by restriction dollar in US

Dollar transfer

• In continuation of our funding exercise, we have signed the offer letters from ECOBANK and Union bank respectively

• Also as part of the condition precedents, we executed the tripartite agreement with Royal Haskoning and Union Bank to enable Royal Haskoning carry out due diligence.

• It is expected that the due diligence will be concluded in 2nd week of February and subsequent drawn down by the end of February, 2015.

• This same due diligence will be used for NISA once they have concluded their internal process.

EXECUTIVE SUMMARY CONT.

• Most of the Design philosophies have been issued for construction (IFC) by EPC Contractor.

• Final HAZOP draft report has been forwarded to EPC Contractor to enable them use it to update the PFD and P&ID for the purpose of issuing them for approval.

• Summary of number of documents transmitted for January, 2015 and document

transmitted till date is captured below:

PROJECT IMPLEMENTATION UPDATE

S/N Discipline Numbers of Document submitted for this month per GatesIFR IFA IFC Remarks

1 Process 2 2 2 Mechanical 12 3 Piping 1 2 4 Electrical 4 4 3 5 Instrumentation 17 1 1 6 Project Control 6 7 HSE 1 1

8 Operations and maintenance

9 Civil 1 1 10 Lean Glycol (GL) 1 1 1 11 Quality Control 1 12 General 5

Total Submitted 48 11 9 Grand Total 68

PROJECT IMPLEMENTATION UPDATE

Documents transmitted for January, 2015Total documents transmitted till date

S/N Discipline

Numbers of Document submitted Till Date

Total Documents IFR IFA IFC Outstanding Documents

1 Process 54 48 - 2 4

2 Mechanical 155 31 4 106 14

3 Piping 59 20 2 30 7

4 Electrical 18 - 1 6 11

5 Instrumentation 170 1 2 19 148

6 Civil & Structural 59 1 - 35 23

7 HSE 13 - 10 3

8 QA/QC 16 15 1

9 Commissioning 7 3 - 4

10 General 3 1 1 1 -

Total 554 105 10 224 215

Grand Total submitted till Date

339

• Fabrication of some of the equipment is in progress at the EPC Contractor’s fabrication yard in Dubai. They are: The fabrication of water degassing boot CPI separator are completed Propane receiver NGL stabilizer NGL Reboiler Chiller De-ethanizer overhead Condenser Gas/Gas Exchanger Regeneration gas cooler.

PROCUREMENT

• EPC contractor has awarded a sub contract to a local firm for the construction of the condensate tanks.

• The sub-Contractor has commenced the civil design for the tanks and is preparing to mobilize to site in February. The EPC contractor has also commenced the engagement of local engineers.

• Preparation to set up a camp at the project site for accommodation and offices to take care of Personnel during construction is ongoing.

• About 22 units of flat pack house have been procure by the EPC contractor and is ready for shipment to Nigeria to set up the camp at the site.

• The camp is expected to cater for office and residential accommodation during construction and eventually for the operation and maintenance.

CONSTRUCTION

• We have reviewed the HSE Plan of the contractor for the project and have shared our opinions with them. So far there are no HSE issues. As at January 31st, 2015.

• The current HSE statistics for the project shows LTIF = Lost Time Injury Frequency = 0 TRCF = Total Recordable Case Frequency = 0 TROIF = Recordable Occupational Illness = 0 No unsafe act, unsafe condition, near-miss = 0 Total Man hours worked (safe hours) = 42,888

HSE

• XODUS and ALEC has continue to provide engineering design quality surveillance for the engineering design done by the EPC contractor.

• Most of the vital documents are at the stage of issue for approval(IFA). • A workshop is being plan for mid of March ‘ 15 to take the document to

approved (IFA) as well as for construction drawings to AFC.• The development quality documents for construction phase for the

project are in IFA stage:

QUALITY MANAGEMENT

• As of 31st January, 2015, engineering has been progressed from 48.87% to 57.55%, while overall has been progress from 10.59% to 17.79%.

• Also Procurement has been progressed from 10% to 35.38%.

PROJECT MANAGEMENT

PROJECT MANAGEMENT

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

57.55%0 5-Aug-14 29-Mar-15 29-Mar-15

On-going

92.00% 73 5-Aug-14 24-Nov-14 5-Feb-15 On-goingSite Survey 100.00% - 5-Aug-14 24-Nov-14 - CompletedBasis of Design 100.00% - 5-Aug-14 24-Nov-14 - Completed

Design Philosophy 91.00% 73 27-Oct-14 24-Nov-14 5-Feb-15 On-goingPlant Operating & Maintenance Philosophy 91.00% 73 27-Oct-14 24-Nov-14 5-Feb-15 On-going

50.01% 0 18-Aug-14 26-Mar-15 26-Mar-15 On-going

Calculations and Reports 50.15% 0 18-Aug-14 26-Mar-15 26-Mar-15 On-going

Drawings 50.00% 0 27-Aug-14 5-Feb-15 9-Feb-15 On-goingP&ID 50.00% 4 27-Aug-14 5-Feb-15 9-Feb-15 On-goingPFD 50.00% 4 27-Aug-14 5-Feb-15 9-Feb-15 On-going

78.41% 0 21-Aug-14 24-Mar-15 24-Mar-15 On-going

Documents 90.00% 15 11-Sep-14 29-Jan-15 13-Feb-15 On-going

Design Calculation Book 77.12% 0 17-Sep-14 23-Mar-15 23-Mar-15 On-goingDrawings 79.44% 0 21-Aug-14 12-Mar-15 12-Mar-15 On-goingDatasheet 74.17% 0 17-Sep-14 24-Mar-15 24-Mar-15 On-going

46.15% 0 15-Jan-15 18-Jan-15 22-Feb-15 On-goingData Sheets 46.15% 0 15-Jan-15 18-Jan-15 22-Feb-15 On-going

64.55% 21 11-Sep-14 1-Feb-15 22-Feb-15 On-going

Documents 80.00% 21 3-Nov-14 1-Feb-15 22-Feb-15 On-going

General Drawings 33.34% 80 11-Sep-14 4-Dec-14 22-Feb-15 On-goingSkid General Arrangement Drawing 77.55% 80 2-Oct-14 4-Dec-14 22-Feb-15 On-going

25.44% 0 2-Oct-14 30-Mar-15 16-Mar-15 On-goingData Sheets 66.67% 0 14-Jan-15 2-Feb-15 13-Feb-15 On-goingDocuments 87.69% 0 2-Oct-14 25-Mar-15 25-Mar-15 On-goingDrawings 5.71% 0 26-Jan-15 16-Mar-15 16-Mar-15 On-going

18.94% 0 17-Aug-14 26-Mar-15 16-Mar-15 On-goingData Sheets 48.57% 0 30-Dec-14 8-Feb-15 8-Feb-15 On-goingDocuments 21.81% 0 17-Aug-14 26-Mar-15 16-Mar-15 On-goingLayouts & Drawings 2.25% 0 2-Oct-14 16-Mar-15 16-Mar-15 On-going

72.23% 0 21-Aug-14 26-Mar-15 16-Mar-15 On-goingDocument 100.00% 0 3-Nov-14 2-Feb-15 2-Feb-15 On-goingDrawings 66.78% 0 21-Aug-14 26-Mar-15 16-Mar-15 On-going

43.23% 0 20-Aug-14 29-Mar-15 29-Mar-15 On-goingDocuments 52.23% 0 20-Aug-14 29-Mar-15 29-Mar-15 On-goingHAZID Report 0.00% 0 21-Dec-14 10-Feb-15 10-Feb-15 Not StartedHAZOP 100.00% 17-Dec-14 23-Dec-14 - Completed

74.45% 0 20-Aug-14 1-Feb-15 13-Feb-15 On-goingDocuments 74.45% 12 20-Aug-14 1-Feb-15 13-Feb-15 On-going

30.00% 0 30-Dec-14 23-Mar-15 23-Mar-15 On-goingDocuments 30.00% 0 30-Dec-14 23-Mar-15 23-Mar-15 On-going

35.38% 0 19-Oct-14 8-Jun-15 8-Jun-15 On-going86.00% 0 20-Oct-14 12-Jan-15 Completed80.75% 0 19-Oct-14 13-Jan-15 Completed21.23% 0 19-Oct-14 1-Jun-15 16-Mar-15 On-going0.00% 0 25-Feb-15 2-Jun-15 17-Mar-15 Not Started0.00% 0 1-Mar-15 3-Jun-15 18-Mar-15 Not Started0.00% 0 16-Mar-15 8-Jun-15 23-Mar-15 Not Started0.02% 0 29-Jan-15 21-Aug-15 21-Aug-15 On-going5.00% 0 9-Oct-14 9-Feb-15 9-Feb-15 On-going0.00% 0 29-Jan-15 15-Jul-15 15-Jul-15 Not Started0.00% 0 23-Feb-15 21-Aug-15 21-Aug-15 Not Started0.00% 0 5-Jun-15 27-Aug-15 27-Aug-15 Not Started0.00% 0 5-Jun-15 23-Jul-15 23-Jul-15 Not Started0.00% 23-Jul-15 27-Aug-15 27-Aug-15 Not Started0.00% 0 31-Aug-15 30-Sep-15 30-Sep-15 Not Started0.00% 0 31-Aug-15 30-Sep-15 30-Sep-15 Not Started

17.79%

CompletedOn-goingNot startedSlipped

General

Process

Engineering

2015Planned

Start Date

Egbaoma Gas Processing Plant Summary ScheduleAs at: 30th Jan., 2015

2014% Complete Delay as at

30th Jan., 2015 (Day)Description

Status

Tra

ffic L

igh

t

Forecast Completion

Date

Planned Completion

DateS/N

Mechanical Static

Shipping of Materials from SPEC Facility

Piping

Electrical

Mechanical Rotating

Receipt of Materials at SPEC Facility

Equipment FAT at SPEC Facility

Instrumentation & Control

Civil & Structure

HSE

QAQC

Commissioning

ProcurementProcurement Enquiries

Overall Progress

Reliability TestReliability Test

Legend

Precommissioning & CommissioningPre-Commissioning Commissioning and Performance Test

Site ModificationConstruction/Fabrication/Erection

ConstructionSite Preparation

Issuance of PO

Vessel hydrotest

4

PROJECT MANAGEMENT

EGBAOMA GAS PLANT PROJECT REPORTFEBRUARY 2015

Progress S-Curve Engineering (Planned vs Actuals)

31-Aug-14 30-Sep-14 31-Oct-14 30-Nov-14 31-Dec-14 31-Jan-15 28-Feb-15 31-Mar-15

Planned 0.0629158827038686

0.129594786838603

0.221238125831765

0.487081822770869

0.530035335689046

0.622229360745262

0.885273736863843

1

Actual 0.076 0.154 0.212 0.4509 0.4887 0.57549621297639

NaN NaN

5.00%

15.00%

25.00%

35.00%

45.00%

55.00%

65.00%

75.00%

85.00%

95.00%

EGPP Engineering Monthly S-Curve

PROJECT MANAGEMENT

EGBAOMA GAS PLANT PROJECT REPORTFEBRUARY 2015

Progress S-Curve Overall (Planned vs Actuals)

31-Aug-14 30-Sep-14 31-Oct-14 30-Nov-14 31-Dec-14 31-Jan-15 28-Feb-15 31-Mar-15 30-Apr-15 31-May-15 30-Jun-15 31-Jul-15 31-Aug-15 30-Sep-15

Planned

0.0275011398814523

0.0724964603681217

0.0995056514122531

0.126850807516018

0.182609008663099

0.227436346619952

0.304744306592114

0.357214849655636

0.606632910177342

0.690060233735692

0.772539655875789

0.862014350507547

0.940006239351107

1

Actual

0.0121 0.0721 0.0812331124036251

0.098 0.105896799183503

0.177923108536416

NaN NaN NaN NaN NaN NaN NaN NaN

5.00%

15.00%

25.00%

35.00%

45.00%

55.00%

65.00%

75.00%

85.00%

95.00%

EGPP Overall Monthly S-curve

Axis

Title

DEPARTMENT OF PETROLEUM RESOURCES (DPR)• DPR has officially sent names of personnel to be attached to the

project for monitory and statutory guidance. They are: Eyoma ,E.B Ogunbona,O.G Okwonkwo, E.B.

• Also another set were sent to participate in the HAZOP exercise. They are: Eyoma, E.B Tambari, Z.Y Ogunbona,O.G

PROJECT MANAGEMENT

E.I.A.

• The Environmental Impact Assessment for the Plant is available, however, it will be revalidated when construction activities commence if required & necessary.

PROJECT MANAGEMENT

MINISTRY OF FINANCE

• We are expecting, the pro-forma invoices from EPC contractor. Application to the Ministry of Finance for duty waiver will start once the Pro-forma invoices are received.

PROJECT MANAGEMENT

MAJOR CHALLENGES ENCOUNTERED

• DEBT FUNDING• MAKING DOLLAR PAYMENT

PROJECT MANAGEMENT

NEW MONTH LOOK AHEAD

• Preparation for the mobilization of Construction/Fabrication Personnel's

• Freezing of the Philosophies, HAZOP, PFDs and P&ID’s • Continuing with detail design, ( Vital deliverables near to AFC)• Mobilization to site.• Engineering to be concluded by March ending.• Procurement & fabrication of the equipment has commenced

earlier and thus continue to keep them with in schedule.

PROJECT MANAGEMENT

Interface with Platform Petroleum• We have continued to interface with Platform Petroleum in the course of

the implementation of this project to get their input to ensure that project is implemented successfully. They have been involved in the following areas. Statutory approval for the plant Security arrangement at the plant Engagement of the community. Providing input for engineering design (Ex.HAZOP) Providing information for due diligence to financial institution Finance committee HR committee

PROJECT MANAGEMENT

15/04/2023 20

THANKSTHANK YOU