niger delta petroleum resources limited - csl …€¦ · · 2013-09-09company profile september...

Niger Delta Petroleum Resources Limited(A subsidiary of Niger Delta Exploration & Production Plc)

Company ProfileSeptember 2011

NIGER DELTAPETROLEUM RESOURCES LIMITED

RC256022

Developing the full potential of Nigeria’s small & medium-sized oil and gas fields

PRESENTATION OUTLINE

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1. Niger Delta Petroleum Resources Limited………………………………………………………………………………………………...3

Overview

Corporate Structure

Key Milestones and Achievements

2. NDPR’s Assets ………………………….………………………………………………………………………………………………………….....8

Ogbele Field (OML 54)

Omerelu Field (OML 53) and OPL 227

Assets in Development

3. Group Results Overview…..……….……………………………………………………………………………………………………………18

Production

4. Host Community Development & Environmental Trust…………………………………………………………………………..22

5. Group Board and Management……………………….……………………………………………………………………………..............25

Board and Senior Management Profiles

6. Five Year Vision……………………………………………………………………………………………………………………….……………28

NIGER DELTA PETROLEUM RESOURCES LIMITED


NDPR - OVERVIEW

“Strong and growing presence in the Upstream and Midstream sectors of the Nigerian Oil & Gas industry.”

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NDPR

Negotiated the 1st

ever Farm Out of a marginal field in

Nigeria .

Ogbele Field has proven P1 reserves of 64.8 million barrels of

oil equivalent .

December 31st, 2010, cumulative

production reached 5.65MMbbls of crude

oil.

1k bpd Diesel Topping Plant: 1st privately

owned mini refinery by a Nigerian independent.

Omerelu field has proven recoverable

reserves of approximately 21.6

million barrels of oil.

Pioneering Host Community

Development Trust Programme.

45% stake in OML 34

6% stake in OPL 227.

Pan African outlook: Exploring opportunities

in Uganda.

Zero Flare: 100mmscfd Gas Processing Plant


CORPORATE STRUCTURE

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Niger Delta Exploration & Production Plc

Niger Delta Petroleum

Resources Limited

ND Gas Development

Company Limited

ND Properties Limited

ND Western Limited

100%ownership

60%ownership

100% ownership

100% ownership


NDPR’S KEY MILESTONES AND ACHIEVEMENTS: 1992 - 2005

1992

Incorporated as

Midas Drilling

Fund.

1993Chevron agreement in

principle for FOA.

1996Name change to

Niger Delta Exploration &

Production Plc.

1996Initiated FOA with the NNPC/Chevron JV for Ogbele and Omerelu

Fields.

1999Received Presidential

Consent for the Farm-Out of Ogbele & Omerelu

Fields to NDPR.

2000FOA signed with the

NNPC/Chevron JV.

2005Ogbele Well 1 successfully re-entered and completed.

1st oil production onAugust 28th, 2005.

20051st Oil production to Bonny Terminal in

October.1st crude oil export in

November.1st Revenue by

Company –December 30th, 2005.

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2

4

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5

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1995First investors subscribed to

NDEP shares.110,000,000 ordinary

shares of N10.00 each in issue.

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Inception to 2005: Building a company on the vision of its founders

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NDPR’S KEY MILESTONES AND ACHIEVEMENTS: 2006 - 2011

Jun 20105mmbbls from Ogbele.

Completed a pioneering GSPA with the

NNPC/SPDC/Agip/Total JV.

_____________________________****Paid 4th Dividend

2006Ogbele Well 2

successfully re-entered & completed for natural gas

production & closed-in.

2006Maintained

production of 3.5kbpd

2007Produced 1mmbbls

of crude oil from Ogbele.

________________________*Paid 1st Dividend.

2008Drilled and completed

Ogbele Wells 3 & 4. Average production of

3.7kbpd._______________________________

**Paid 2nd Dividend

2009Received approval to

drill Ogbele Wells 5 & 6.Production peaked at

8kbpd & averaged 4.3kbpd

2009Purchased a 1kbpd Diesel

extraction plant.Finalized terms of FOA to

develop Omerelu.__________________________________

***Paid 3rd Dividend.

Aug 2010Received DPR’s consent to drill

Ogbele Well 6 (gas well)

Oct 20105 years of

continuous oil production from

Ogbele.

Dec 2010Test production of diesel

at Ogbele.5,474,386 bbls of crude

oil produced since inception

Feb 201110 years of Host

Community Development through the

Trust.

Mar 2011Received DPR

approval to drill Ogbele Well 7 (oil

well).

Mar 2011Completed building a

100mmscfd Gas Processing Plant, at

Ogbele.

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1

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3

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2006 to 2011 – “Steady and assured growth”

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June 201114th AGM.

________________________*****Paid 5th

Dividend to Shareholders

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NDPR’S ASSETS


NDPR’S: ASSETS

“Healthy portfolio of producing assets and assets in development.”

NDPR’s Assets

OgbeleField

(OML 54)

OML 34 ? 45%

Uganda:?Blue Sky

Opportunities?

OPL 227

OmereluField

(OML 53)

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Satellite image of the Ogbele and Omerelu Fields

OGBELE FIELD (OML 54) AND OMERELU FIELD (OML 53)

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OGBELE FIELD (OML 54)

The Ogbele Field, discovered in 1981, is

located onshore in old OML 54 in Rivers

state; 45 km northwest of Port Harcourt.

The legal title to old OML 54 is held by the

Nigerian National Petroleum Corporation

(“NNPC”), which through a Farm-out

agreement signed with NDPR in 2000,

granted NDPR an equitable interest in the

marginal reservoirs within the Ogbele field.

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The Ogbele Field development is focused on the production of crude oil and natural gas from

the field, and processing of the natural gas into higher value products.

First oil production was achieved in August 2005 and as at December 31st, 2010, cumulative

production from inception reached 5.47 million bbls of crude oil.


OGBELE FIELD TODAY

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Gas Processing Plant completed (2011):

Implementing a “zero flare” policy

1,000 bpd Diesel Topping Plant completed: (2011)

Developing the full potential of the Ogbele field.

“Becoming a fully integrated Indigenous Nigerian Oil and Gas Company.”

Well #1 Oil & Gas well (2005)


OGBELE FIELD: GROWTH IN P1 CRUDE OIL RESERVES SINCE INCEPTION

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02468

101214161820

1995-2000 (Chevron)

2000-2005 (Geotrex,

Robertson Research,

Chapman Eng.)

2007-2010 (Geotrex)

Mil

lio

n B

ar

re

lsCrude Oil Reserves Growth


OGBELE FIELD (OML 54) – DIESEL TOPPING PLANT (MINI REFINERY)

“The first privately owned mini refinery to be built and operated by a Nigerian independent producing company.”

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Ogbele Field 1,000 bpd Diesel Topping Plant

Commenced and completed the mechanical

installation activities of the 1,000bpd Diesel

Topping Plant (mini refinery) at the Ogbele

Field.

Test production of diesel from our crude oil

commenced in December 2010.

Waiting on Federal Government “License to

Operate”.

The Plant is designed for 1000bpd with 55% cut of Diesel per day.

The Phase 2 development of the Plant will include a 2 product cut (Diesel and Kerosene) with

an installed processing capacity of 2,000bpd; increasing capacity to 3,000 bpd.

NDPR has obtained full independence from unsteady supply of diesel for its drilling and

production operations and is exploring the possibility of excess supply to the domestic market.


OGBELE FIELD (OML 54) – GAS PROCESSING PLANT

“Implementing our Gas Utilization Project in line with the ‘zero flare’ policy by the Federal Government.”

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Ogbele Field 100 million scf/d Gas Processing Plant: Now at Commissioning Stage

Completed the installation of the 100mmscfd

Gas Processing Plant at Ogbele in March 2011

Completed a 12”x20km gas pipeline for the

transportation of gas to the NLNG manifold at

Rumuiji in Rivers State in October 2010.

Awaiting hook-up to NLNG manifold.

Completed the pioneering Gas Sale and

Purchase agreement with the

NNPC/SPDC/Agip/ Total JV in 2010.

Presently at the commissioning stage.

The first gas delivery into the Ogbele Gas Processing Plant is expected by the end of Q3/early

Q4 2011.

This is the first independent Gas offtake into the NLNG Train 6 from an independent Nigerian

producing company.

Additional revenue streams expected from LPG, Propane, Condensate and Dry Gas sales.


OMERELU FIELD (OML 53) AND OPL 227

Omerelu Field (OML 53)

The Omerelu field (OML 53) was discovered in 1975 and is located 42 km northwest of PortHarcourt in OML 53.

The Omerelu field has proven recoverable reserves of approximately 21.6 million barrels ofoil.

The Omerelu marginal field agreement between NDPR and the NNPC/NAPIMS/Chevron JVwas concluded in 2010 and is awaiting execution and NNPC approval.

OPL 227

The OPL 227 license area is located in the shallow water offshore of the western Niger DeltaBasin and covers an area of approximately 974sq. km.

NDEP has a 6% interest in OPL 227, in partnership Express Petroleum (Operator, 39%),Petroleum Prospect International (PPI) (15%) and Addax Petroleum(40%).

Four wells have been drilled between 1970 and 1988.

Work program of 500 km2 of 3D seismic completed.

Ongoing processing prior to a 3 well drilling commitment.

To date we have set up the community relations Project Advisory Committee (PAC).

Exploration period : 5 years from April 2008.

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ASSETS IN DEVELOPMENT: OML 34? AND PAN AFRICAN EXPANSION (UGANDA?)

The NDPR/Petrolin consortium are in advanced

negotiations with the Sellers (Shell, Total and Agip)

for acquisition of their 45% interest in OML 34.

NNPC retains a 55% interest in the asset.

OML 34 lies in the Western Niger Delta province.

It is a producing block with 4 fields.

The transaction on completion is subject to

obtaining the consent of:

The Minister of Petroleum

The NNPC

The approval of the Department of Petroleum

Resources

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Map of OML 34

NDEP recognises the emerging opportunities in the

Ugandan Oil and Gas sector and thus initiated

interests to partner with Uganda to develop the

Petroleum reserves of the country.

The company has over the past two years investigated

options in Uganda to familiarize itself with the

country’s E&P industry.

NDEP, through NDPR, has applied for and purchased

technical data for preliminary interpretation and

evaluation of the Open licenses available for sale.

Uganda has

hydrocarbon

accumulation in

commercial quantities

and exploration and

appraisal drilling has

proved a potential

accumulation of over 2

billion barrels of oil in

place.Location in East Africa

GROUP RESULTS OVERVIEW


ANNUAL CUMULATIVE PRODUCTION SINCE 1ST OIL: OCTOBER 2005 TO AUGUST 2011

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0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

2005 2006 2007 2008 2009 2010 August 2011

Ba

rre

ls o

f C

rud

e O

il

Year

Cumulative Production

July 2010

February 2007


ANNUAL CUMULATIVE REVENUE SINCE 1ST OIL: 2006 TO 2010

20

0

20

40

60

80

100

120

140

160

180

2006 2007 2008 2009 2010

US

$ M

illi

on

Year

Cumulative Revenue


ANNUAL CUMULATIVE PROFIT AFTER TAX SINCE 1ST OIL: 2006 TO 2010

21

0

20

40

60

80

100

120

2006 2007 2008 2009 2010

US

$ M

illi

on

Year

Cumulative Profit After Tax

HOST COMMUNITY RELATIONS


HOST COMMUNITY & ENVIRONMENTAL DEVELOPMENT TRUST (THE TRUST)

NDEP founded the first ever Host Community &Environmental Development Trust (the Trust) inthe Oil & Gas sector in 1997.

The Trust is funded by NDEP voluntarily dedicating5% of its audited annual profits towards sustainabledevelopment projects in our 5 Host Communities.

The Trust funds projects that protect theenvironment, advance education, enhance economicgrowth and promote job creation within thecommunities.

To date approximately N689 million (US$4.5million) has accrued to the Trust.

In 2010 alone, a total of N225.9 million (US$1.5million) was disbursed towards projects rangingfrom the completion of the Ogbele community roadto an empowerment programme for women and thegirl child in all host communities.

Through the Trust and the partnership it promotes,NDEP has forged a good relationship with its Hostcommunities and has enjoyed relative successoperating in the restive Niger Delta region ofNigeria.

“October 2010 marked 5 years of successful, continuous production operations with no Host Community induced disturbances.”

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SN Host Community

Projects

1 Ogbele • Community road rehabilitation &reconstruction project.

• Bursaries to 282 students fortertiary education.

2 Oshiugbokor • Construction of Okoma 11 bridgeand Ogbele-Oshiugbokor accessroad

• Bursaries to 151 students fortertiary education.

3 Obumeze • Bursaries to 117 students fortertiary education.

4 Otari • Electrification project&Construction boreholes.

• Construction of the ultra moderntown hall.

5 All Host Communities

• Phase 1 of the Women and theGirl child EmpowermentProgramme with CLP

• Sports equipment for a footballcompetition among thecommunities.


HOST COMMUNITY & ENVIRONMENTAL DEVELOPMENT TRUST PROJECTS

Completed Ogbele Community Road

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Ongoing construction on the Oshiugbokor/Okoma Girder Bridge

Women’s Empowerment ProgrammeDistribution of Exercise Books to Primary School Children at Ogbele

BOARD AND MANAGEMENT


BOARD MEMBER PROFILES

Name Background

Mr. Ben Osuno (FNAPE, FNMGS) - Chairman • Geophysicist with over 50 yrs experience in E&P.• NNPC, DPR, Ministry of Petroleum Resources, Rep. World Petroleum

Congress, OPEC Governor.

Dr. Layi Fatona (FNAPE) – Managing Director • Petroleum Geologist with over 37 yrs experience in E&P.• SPDC, NDEP.

Chief David Richards • Banker with 40 years combined experience in Banking and E&P• Standard Chartered Bank, MD - Midas Merchant Bank, NDEP.

Mr. Ahmed Khelif • Electronics Engineer/Geophysicist with over 40 years combinedexperience in E&P and IT.

• Algerian Institute of Petroleum, Petrolin Group.

Professor SJS Cookey (OFR, KSC) • Professor of History• VC - University of Port Harcourt, Pro-Chancellor – Obafemi Awolowo

University (Ife), State University (NY), Rutgers University (NJ)

Mr. Goody M. Ibru (OON) • Lawyer with over 40 years of practice.• Chairman & President – NSE, Honorary Consul of the Rep. of Lithuania

in Nigeria, EVP (W.A. Chapter) African Business Round table, ChairmanNEPAD Business Group, VP Lagos Chamber of Commerce, G.M. Ibru &Co..

Mrs. Zuwairatu Mantu • Lawyer with over 20 years of practice.• Zuwairatu Mantu & Associates

Mr. Ladi Jadesimi • Chartered Accountant with over 40 years of practice.• Arthur Anderson Nigeria, Private Business (Banking, Oil & Gas, Real

Estate).

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SENIOR MANAGEMENT PROFILES

Name Background

Mr. Femi Balogun – Group Financial Controller

• Chartered Accountant• 30 yrs combined experience in Finance and E&P• SPDC, Yinka Folawiyo Group, IITA, Oilscan Limited, NDEP

Ms. Titi Omisore – Legal Adviser • Lawyer• 20 yrs experience.• Strachan Partners, NDEP

Mr. Onyema Ubani – Production Operations Adviser

• Electrical/Electronic Engineer• 37 years• NEPA, SPDC, NDPR

Chief Edirin Abamwa – Sub-surface Petroleum Engineering/Development Adviser

• Petroleum Engineer• 30 years experience in E&P• Schlumberger Nigeria Ltd, SPDC, NDPR

Mr. Felix Molokwu • Geologist• 34 yrs experience in E&P• Chevron (Nigeria, USA, Papua New Guinea), Dynamics Nigeria Ltd,

NDPR

Mr. Francis Ilesanmi • Well Engineer• 38 yrs experience in E&P• SPDC (Nigeria, the Netherlands, Australia, USA), Matpatson, NDPR

Mr. Nuhu Adaji • Mechanical Engineer• 35 years• SPDC (Nigeria, South East Asia), Oando, NDPR

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STRATEGIC GROWTH PLANS – 2012 AND BEYOND

Developing the full potential of Nigeria’s oil and gas fields

Focus on capital and cost discipline.

Aggressively grow reserves base.

Expand footprint beyond Nigeria, into Sub-

Saharan Africa.

FIVE YEAR VISION

Deliver constant and substantial returns on

investment to shareholders/investors.

Be the leading independent , indigenous,

integrated oil and gas producer in Nigeria.

Build a high-impact natural gas business.

Be the leader in the development of Nigeria’s small/medium sized oil

fields.

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Thank you!

Q&A

niger delta petroleum resources limited - csl …€¦ · · 2013-09-09company profile september...

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