SUBSEA OPPORTUNITIES IN NIGERIA

FOR UK SUPPLY CHAIN

Taofik Adegbite www.marineplatforms.com

www.marineplatforms.com

Overview: Nigerian Petroleum

Industry Profile

Resources

• Nigeria's Oil and Gas Industry Profile:

– Oil and Gas Reserves:- +/-37 billion barrels and +/-187 trillion cubic

feet (33 bln boe) respectively

– Crude oil production capacity:- 3.3 million bbl/d; Vision 4 million

bbl/d

– 6th largest oil exporter among OPEC countries

– The 7th largest gas reserves in the world

– Oil & gas accounts for about 30% of GDP, over 80% of Government

revenues and 95% of foreign exchange earnings.

Overview: The Nigerian Oil and

Gas Industry

The Nigerian Oil and Gas Industry:

Legislation

NIGERIAN CONTENT DEVELOPMENT & MONITORING BOARD

• First Consideration of Nigerian Companies

Nigerian independent operators given first consideration in the award of oil blocks, oil field licenses, oil lifting licenses, contracts and all projects

• Nigerian Content Plan & Enforcement

• Insurance, Legal & Financial ServicesMandatory use of services of Nigerian institutions except where impracticable. Retention of minimum of 10% of total revenue in Nigeria

• Establishment of Local Content Fund

Financed by the deduction of 1% of all contracts awarded in the industry .

The Nigerian Oil and Gas Industry:

Legislation

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Control by IOCs State Involvement Collaborative Partnerships

1956 1970 1980 1990 2000+

From predominant IOC control to more

active indigenous partnerships

Long, winding but progressively evolving ………….

Evolution of the Nigerian Petroleum

Industry

• To increase the participation of indigenous operators in the upstream sector, the Federal

Government of Nigeria (FGN) commenced the bidding process for 31 marginal fields in

2013. Out of the 31 marginal fields being allocated, 16 are located onshore, while the

remaining 15 are located in the continental shelf of Nigeria.

• Since 2009, in a bid to rationalize their asset portfolios, and shift strategic development

focus to the deep offshore operations, IOCs have been divesting onshore, shallow and

deep-water assets. 24 Oil Mining Leases (OMLs) worth $10.78 billion have been acquired

by indigenous E & P companies. The divestment of assets has become a key success of

government’s local content policy in the upstream sector.

• Only indigenous operators are eligible for bidding for the marginal fields. However, some

of the successful bidders would require various levels of financial and technical support.

Therefore, potential investors can partner with these successful indigenous companies to

provide the requisite support.

IOC Assets Divestments

• Today, local Nigerian companies own majority of the blocks sold by the IOCs which are

creating new opportunities for local contractors and their respective financiers. Indigenous

production currently accounts for about 10 per cent of total production in Nigeria is further

expected to grow as $11bn worth of assets are planned for divestments by IOCs in the

coming years.

Some major independent E & P players include:

IOC Assets Divestments Contd.

“7 Big Wins”: Short &

Medium Term

Priorities to Grow

Nigeria’s Oil & Gas Industry

Overview of Nigerian Subsea Activities

Foreign Vessels Currently in Nigeria

Vessel Name Type

Maersk Inventor CSV

Seven Pacific CSV

Siem Marlin MPSV

Boa Deep C CSV

Surf Supporter MPSV

Lewek Crusader CSV

Olympic Triton MPSV

Topaz Captain MPSV

Bourbon Evolution 801 & 808 MPSV

Skandi Skansen CSV

Opportunities: Nigerian Major Deepwater Fields

FIELD IOC FIRST PRODUCTION DATE

ABO ENI 2003

BONGA MAIN SHELL 2005

AJE FASL 2016

ERHA EXXON 2006

AGBAMI CHEVRON 2008

AKPO TOTAL 2009

USAN EXXON 2012

BONGA NW SHELL 2014

EGINA TOTAL 2018

• Life of Field• Maintenance• Subsea Solutions• Life Extension

General Opportunities For Partners/Vendors

Upcoming Deepwater Projects in Nigeria

13

IOCS(FIELDS) DESCRIPTION WORKSCOPES

ENI (ZABABZABA-ETAN) Greenfield Development

(Ultra Deepwater)

Construction, Installation,

FPSO Services, Survey. LoF,

Gas Export Pipelines, Drilling,

Fabrication

SHELL (BONGA NORTHWEST) Brownfield Development SURF, TIP, FPSO Supply &

Integration, Survey, LoF

SHELL (BONGA

SOUTHWEST/APARO)

Brownfield Development SURF, TIP, FPSO Supply &

Integration, Survey, LoF,

Fabrication, Single Point Mooring

TOTAL(IKIKE) Electrical Cable & Jacket &

Topside Installation &

Brownfield Moderation

EPCI, Engineering & Design,

Fabrication

TOTAL (PREOWEI) Greenfield Development Fabrication and Provision of SPS,

SURF, Jumper, Manifolds

Fabrication, Vessel & Installation

Services

Upcoming Deepwater Projects in Nigeria

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IOCS(FIELDS) DESCRIPTION WORKSCOPES

FIRST E&P PROJECT ALPHA

(ANYALA & MADU)Greenfield Development

Vessel & Installation Services, Survey,

TIP, Engineering & Design, EPCIC

SURF & gas manifolds, Trenching,

ADDAX (OKWORI) Life Of Field

Construction, Vessel Services,

Installation, Survey, SURF, TIP,

FPSO Supply & Integration, IRM

CHEVRON (MAKARABA)Gas Development: Unbonded

Flexible Pipeline

Construction, Installation,

FPSO Services, Survey, Vessel &

Installation Services, Engineering &

Design

CHEVRON(NSIKO)

Greenfield Development,

Production tie-back to FPSO

Vessel & Installation Services, Survey,

EPCI, TIP, FPSO Supply &

Integration, Engineering & Design

EXXON MOBIL (OWOWO)Greenfield Development,

Production tie-back to USAN

FPSO

Vessel & Installation Services, Survey,

TIP, Engineering & Design, EPCIC

SURF & gas manifolds, Trenching,

EXXON MOBIL(BOSI)

Market Segments in Nigerian Oil & Gas Industry

Opportunities For UK Supply Chain

16

• PROVISION OF EQUIPMENT & EXPERIENCED OFFSHORE PERSONNEL

• ENIGENEERING & PROJECT MANAGEMENT

• FABRICATION

• SPARES

• BESPOKE SOLUTIONS

• TRAININGS

• SURVEY

Value Co-Creation

Strategic alliances to capitalize on relationships in

order to create maximum value such as:

• Assisting sub-contractors to attain top level achievement in their area of specialisation.

• Equipping Nigerian companies with self sustaining capabilities, making them viable to

compete at a global level.

• Improving quality of service to enable valuable collaborations to co-bid for projects

within the industry.

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Value Co-creation - Local Content Development

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MARINE PLATFORMS

&

OUR ROLE

Marine Platforms

Subsea SolutionsBrownfield

DevelopmentVessel Chartering Well Services

Inspection, Repair & Maintenance

Drill Support

Survey & Positioning

ROV Systems, Equipment &

Personnel

Specialized ROV Tooling

Subsea Construction &

Intervention

Subsea Integrity Management

Offshore Project Personnel

Project Design & Engineering

Project Management & Logistics

Subsea Umbilical , Riser and

Flowline Installation &

Construction

Load out, transportation, Storage

,Installation and Pre-

Commissioning

Construction & ROV Support

Vessels

Anchor Handling Tugs

Offshore Support Vessels

Supply Vessels

Sea Fastening Design, Installation

and Removal

Coiled Tubing

Wireline Services

Wellbore Cleanout Tools,

Chemicals & Associated Services

Tophole & Rigless Drilling

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MPL’s Transaction with UK Companies from 2010 - Date

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Over £170,000,000.00 paid to

UK companies/vendors.

Key Transaction Areas

ROVS

PERSONNEL

SPARES

SURVEY

SHIP MANAGEMENT

TRAININGS

FUEL MONITORING SYSTEMS

SUBSEA SUPPLIES

Clients and Partners

Key Clients Key UK Partners

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