NDPR Ltd Announces the Commencement of Ogbele Gas Plant Commissioning

Niger Delta Petroleum Resources Ltd (NDPR), the fully owned subsidiary of Niger Delta Exploration & Production Plc (NDEP) is pleased to announce that the Ogbele Gas Plant is now being commissioned.

Over the last few years, NDPR initiated the Ogbele Gas development project in the expectation that company positions itself to harness the full potential of the Ogbele Oil and Gas Field and:

1. Fully monetize the gas potential of the Ogbele Field and at the same time

2. Attain full gas flare out in compliance with the Federal Government Zero Flare policy.

After various delays due to unavoidable 3rd party stringent technical requirements and new preconditions set by NLNG, NDPR is pleased to confirm that the installation of the Gas Plant is now competed and effective commissioning of the plant has finally commenced.

As this is a time consuming and meticulously exhausting sequence of technical activities, the duration of the commissioning process itself will span several weeks. The process will commence with a formal notice and request to the Department of Petroleum Resources (DPR), to allow introduction of gas into the plant. This flag off request has been activated in early October and will be followed by a two day walk through of the Gas Plant at Ogbele by a combined team of very senior technical inspectors from NLNG, Shell and DPR Officials.

This inspection and walk-through exercise, will confirm that the plant had been built to international safety standards and is in a state to produce, process and transmit gas uninterruptedly to the NLNG. We expect the 2 day audit to be completed by the 9th October, 2012.

Thereafter, final checks and systematic startup of installed equipment and the opening of the Ogbele-1 Gas Well to the plant will commence. These are simultaneous with gas pipeline pre cleaning activities.

As of the 15th October 2012, the 20 km 12″ NDPR owned and operated Ogbele – Rumuji Gas delivery line, commenced the mandatory hydro-testing processes, whereby a series of water and gas flushes the line, ahead of dry gas transmission from the Ogbele Gas Plant to Bonny NLNG Plant. NDPR anticipates that effective and continuous gas transmission will commence no later than the end of October 2012 or immediately thereafter.

With this, will be the attainment of a major milestone, yet again for NDPR, the effective elimination of gas flaring from our oil production operations at Ogbele, the commencement of commercialization and monetization of our gas resources and not least, the full compliance with the Federal Government Zero Gas Flare policy. This is a small foot step towards a big national environmental, resource conservation and utilization objective.

Dr. ‘Layi Fatona, MD, NDPR Ltd, said, ‘On behalf of Management and staff at NDPR, we want to thank the Board for the support we have received throughout the financially burdensome period of this project. Without their backing, the commissioning of the Ogbele Gas Plant and the attainment of many other milestones would not have been possible.‘

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