Buffer around Yoho Development Drilling Areas and FLNG Project Location

BACKGROUND INFORMATION DOCUMENT (BID) FOR UTM FLOATING LIQUIFIED NATURAL GAS (FLNG) PROJECT, NIGERIA

Project Title; Floating Liquefied Natural Gas (FLNG) Project

Project Location; The shallow water Yoho and Awawa fields form part of the NNPC/Mobil Producing Nigeria JV. The fields are located in OML 104 Offshore, Akwa Ibom State, Nigeria.

About the Project

Floating Liquefied Natural Gas (FLNG) is a novel technology that allows a vessel with liquefaction capability to tap directly into remote offshore fields and load it directly onto a Liquefied Natural Gas (LNG) carrier, avoiding the need of building expensive underwater pipeline infrastructure. It is an LNG Plant constructed on a ship or a barge which has LNG storage and offloading facilities. The FLNG accomplishes the gas treatment and liquefaction from the natural gases produced in offshore gas fields, and the storage/offloading of produced LNG to LNG carriers for transportation.

FLNG Facility provides an opportunity to monetize stranded gas with no immediate delivery of infrastructure, where there are insufficient reserves to support onshore LNG facility and difficulty in landing gas onshore. The facility allows monetizing the stranded gas rather than re-injection or flaring.

Components of the Project

The project’s basis of design includes:

• LNG Production Capacity: 1.2m MTPA

• Source of Gas: OML 104 (NNPC 60% / ExxonMobil 40%)

• Available Gas: 1.1 TCF of associated gas

• Gas Stream: 176 mmcfd

• LNG Storage Capacity: 200,000m3

• Tanker Size: 138,000m3 to 181,000m3

• Location: 60km to shore, Nigeria

• Water Depth: 64m

The FLNG Value Chain

The LNG supply chain consists of four main links which includes:

1. Exploration and Production: Involving extraction of oil, natural gas and produced water from natural reservoirs.

2. Treatment and Liquefaction: Involving treatment of natural gas to make it suitable for processing in liquefaction plants. Processing includes removing liquids, solids, vapours and impurities.

3. Shipping: The Liquefied Natural Gas is loaded onto specially designed ships built around insulated cargo tanks to keep the LNG in a liquid state throughout the voyage.

4. Receiving and Distribution: An LNG receiving terminal comprises LNG storage tanks and regasification facilities that convert LNG back to its gaseous state by the application of heat. The re-gasified LNG has a wide range of end-users that spans across all sectors of the gas market.

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