PETROLEUM RESOURCES

7 KOFO ABAYOMI STREET,VICTORIA ISLAND,LAGOS.

12650

PETRES

2776000 PI/GRE&P/GS/V.I/115

27478NG Aril 23,2008

THE MANAGING DIRECTOR,

SHELL NIGERIA EXPLORATION & PRODUCTION COMPANY,

FREEMAN HOUSE

21/22 MARINA,

LAGOS,

Dear Sir,

GAS GEOSCIENCE AND RESERVOIR ENGINEERING STUDIES PROGRAMME FOR 2008

In line with the usual practice and in compliance with sections 41 and 43 of the petroleum(Drilling and Production) Regulations of 1969,all gas producing reservoirs and fields, projects and gas field development programme pools are required to be studied at periodic intervals.

In addition to this statutory requirement, the gas sector holds significant potential following several years of low gas utilization. The challenge now is to create deliverable supplies for domestic consumption, hence the need for studies to determine where these actual potential lies and their deliverability to the nation.

We wish to inform you that the Gas monitoring and Regulation Department is yet to receive your Gas Studies Programme for 2008. Hence you are expected to submit same tos this office not later than May 16,2008.

You are expected by the regulations under reference to furnish this office with:

a) Type of gas projects/Reservoir Studies

b) Projects and studies timing and implementation

c) Details of DPR’s professionals participation.

Furthermore, you will be expected to make technical presentation to the Department prior to the commencement of the study/project (to justify the appropriateness of the identified study/project) and after the completion of the study/project.

Yours faithfully,

F. O. Omiwade

For: Director of Petroleum Resources.