Subsea Expo 2016

Eaen McKenzieGE Oil & GasAberdeen 3rd February

East Africa

Tanzania

Mozambique

• Need to unlock gas & oil resources• Geopolitical risks• Opportunity to build a large

regional pipeline network• Export LNG vs gas domestic needs

Substantial Infrastructure Needs

Tanzania

Type Number Location Number

Discovery Wells

18 Onshore 5

Offshore 13

Dry Wells 47 Onshore 42

Offshore 5

Appraisal Wells

22 Onshore 10

Offshore 12

Total 86 86

Wells Drilled (until June 2015)

24 PSA’s/17 IOC’s/1 NOC (TPDC)

Shell Blocks (9-12) Under Application (Near Zanzibar Island)

BG Blocks (1 & 4)PSA Exploration License(BG-60%, Ophir-20% & Pavilion-20%)

c

Statoil Block (2) PSA Exploration License(Statoil-65% & ExxonMobil-35%)

Petrobras Blocks (6 & 8) PSA Exploration LicenseBlock-8: Petrobras-50% & Shell-50%Block-6: Petrobras-38%, Statoil-12% & Shell-50%

Source: TPDC, Ophir, BG, Statoil, Petrobras

Ophir Block 3PSA Exploration License(BG-60%, Ophir-20% & Pavilion-20%)

Natural Gas DiscoveriesLocation Period Amount

(TCF)

Mkuranga 2007 0.2

Kiliwani 2008 0.07

Songo Songo 1974 2.5

Mnazi Bay 1982 5

Total onshore 1982-2008 8

Deepwater 2010-2012 45.2

TotalGas In Place

Dec 2014 53.2

Natural Gas Discoveries - DW

Name Partners Status Reserves

Block 1,3 &4BG: 60% (Operator)Ophir :20%Pavilion Energy: 20%

Discovery (15 wells total:

10 exploration5 appraisalall discoveries)

~16-20 TCF

Block 2Statoil: 65% (Operator)ExxonMobil: 35%

Discovery (13 wells since

2012, with 8 discoveries)~19-25 TCF

Block 6Petrobras: 38% (Operator)Statoil: 12% Shell: 50%

ExplorationNot Available

Block 7Ophir: 80% (Operator) Mubadala Petroleum: 20%

Exploration (1st well drilled)

None

Block 8Petrobras: 50% (Operator)Shell: 50%

ExplorationNot Available

• New Natural Gas Infrastructure Project

(NNGIP): 100% owned by GoT, to transport natural gas

from Mtwara to Dar es Salaam (DSM)

• Processing Facilities140 mmscfd in Songo Songo

210 mmscfd in Mnazi Bay

The pipeline capacity is 784 mmscfd without compression and

1,002 mmscfd with compression

36” x 487 km pipeline from Mtwara to DSM

3,900 MW

• Gas which will be transported in 20 years is 12% of current total discovery

Gas Pipeline

Mtwara & Songo Songo to DSM Gas Pipeline Project

4th and Last Round of Offshore Blocks

Upstream

Block 4/3B – Gazprom

Block 4/2A – Mubadala

Block 4/3A – Statoil/ExxonMobil

Block 4/3A – China National Offshore Oil Corp.

Lake Tanganyika North – Ras Al Khaimah Gas

Bids under assessment

Logistics (infrastructure)

LindiLNG site

Mtwara:Drilling logisticsShore base for drilling support

Dar es SalaamHead offices

LNG Site – Lindi

LNG

Typical CAPEX Investment c. 35-45% Typical CAPEX Investment c. 55-65%

Tanzania LNG Project EstimateOffshore Facilities CAPEX: $ 7 – 9 Billion

Tanzania LNG Project EstimateLNG Facilities CAPEX: $ 11 -13 Billion

Gas Reception & TreatmentGas Production

Source:Block 1 & Block 2

(Subsea lines)

Feed Gas

ONSHORE FACILITIES

Gas transport Pipeline

For Domestic Market

Usage

LNG storage

Primary

gas/liquid

separation

Condensate

storage

OFFSHORE FACILITIES

Gas Liquefaction

LNG Loading Facility for Export

LNG Carrier

CondensateStabilization

Acid Gas Removal

Dehydration & Mercury Removal

LNG TRAIN 1

Hydrocarbon Separation & Liquefaction

Fractionation

Condensate’s

C5+

LNG TRAIN 2

LNG

LNG Project Profile

Offshore

Development Blocks: Block 1 (BG Operated) + Block 2 (Statoil Operated). Two totally

independent projects will be executed by BG & Statoil respectively

Number of Wells: Between 24 – 48 wells in total across both blocks

Water Depths: 950 – 2600 meters

Drilling & Completions: Development wells likely through 12 ¼ inch big-bore

Offshore Facilities: Likely to have subsea separation and boosting systems with

subsea compression systems

Onshore LNG Plant

Location: Lindi (north of Mtwara)

Development Concept: Two x 5.0 mmtpa onshore trains

Output Capacity: 10 mmtpa

Feedstock Gas: Block 1 (BG Operated) and Block 2 (Statoil Operated)

LNG

LNG Indicative Project Timeline

NG is condensed into a liquid at close to atmospheric pressure with a maximumtransport pressure set at around 25 kPa (4 psi) by cooling it to ~ −162 °C 1 TRAIN: 1 MILLION TONS PER ANNUM (mpta) – 150 mmcfd – 25 years = 4.8 tcf

Investment in Infrastructure as well as Offshore

Wells Drilled (2009-2014)

Mozambique

Country/ Block

Operator E&A Wells Completed

Wells Reported Commercially

Successful

Success

Rate

Mozambique Block 1

Anadarko 32 26 81%

Mozambique Block 4

Eni 13 12 92%

Mozambique Blocks 2/5

Statoil 2 0 0%

Mozambique Blocks 3/6

Petronas 1 0 0%

Mozambique Others

Sasol 2 0 0%

Rovuma Basin Offshore Blocks

Tanzania

Madagascar

Kenya

Mozambique

Source: IHS EDIN

Indian

Ocean

N

85+Tcf

5th and Last Round of Offshore Blocks

Upstream

Block A5/A (Angoche) – ENI Mozambique

Block A5/B (Angoche) - ExxonMobil E&P Moz.

Block A5/C (Zambezi) – ExxonMobil E&P Moz.

Block A5/D (Zambezi) – ExxonMobil E&P Moz.

Block PT5/C (Pande/Temane) – Sasol

Block P5-A (Palmeira) – Delonex Energy

Operators

Partners

onshore

5th round

future

Logistics (infrastructure)Palma

LNG plant

Pemba

Government interface

Drilling logistics

Shore base location for drilling support

Training centers

Maputo

Head offices

PalmaPalma

2,440km by Road

1,656km by Air

Logistics (infrastructure)

LNG Plant

18,000 Ha = 11,000 Ha + 7,000 Ha (LNG Plant)

PALMA

Logistics (infrastructure)

Golfinho/Atum

Prosperidade

Mamba (Area 4)

PALMA

Logistics (infrastructure)

Container

Terminal

Logistics

Base

• Commercial Port• Subsea Fabrication• Spooling• Warehouses/Containers• Shipyard• Waste Treatment• Residential Base• Port AdministrationPemba

Logistics (infrastructure)

Phase 1A: ‘15, ‘16 & ‘17• Q1 ‘17:

• 312 m quay• road access/drainage

• storage area (60 Ha)

Phases 1B/1C:• additional 500 m quay• storage area (20 Ha)• ‘17 / ‘18

Pemba

Logistics (infrastructure)

Pemba

LNG

LNG Project Profile

Offshore

Development Blocks: Block 1 (Anadarko Operated) + Block 4 (ENI Operated).

One stranded field between blocks 1 (Prosperidade) and 4 (Mamba)

Number of Wells: Between 50 – 60 wells in total across both blocks

Water Depths: 500 – 2600 meters

Drilling & Completions: Development wells w/7” X-trees

Offshore Facilities: 1 FLNG (block 04), 2.5 mpta

Onshore LNG Plant

Location: Palma (north of Pemba)

Development Concept: 2 x 6.0 mmtpa (block1), and 2 x onshore trains 5.0 mmpta (block 4)

Output Capacity: 12 mmtpa (Block 1), and later 10 mmtpa (Block 4)

Feedstock Gas: Block 1 (Anadarko Operated) and Block 4 (ENI Operated)

Developments are Progressing

Thank you !