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Statement by Shell: Afam VI Gas Power Plant starts in Nigeria

Wednesday, October 29, 2008

Shell Petroleum Development Company (SPDC) as operator of the joint venture with Nigerian National Petroleum Company (55%), Shell (30%), Agip (5%) and Total (10%) has begun commissioning the first turbine of the Afam VI Power Plant, the Okoloma Gas Plant and associated gas wells – collectively known as the Afam Gas and Power Project.

The Okoloma Gas Plant started supply of gas on 11 October, and commissioning of the second turbine of the Afam VI Power Plant is planned for early November.

Performance tests on the first gas turbine should be finalized by early November.

To date the project represents an investment by the joint venture partners of $1.3 billion. When completed it will provide gas equivalent to approximately 20% of the current total Nigerian domestic gas supply.

Underlining the importance of the power plant to the Nigerian economy, Mr. Mutiu Sunmonu, Managing Director of SPDC said: “The new power plant, with a design capacity of 650 MW, has already supplied approximately 64,000 MWhrs of electricity for Nigerian consumers, and by year end the first phase of the plant should be generating approximately 450 MW. This is an extremely important project for Nigeria and the Nigerian people and we are very pleased with the way it has been delivered and with how commissioning is proceeding.”

The second phase of the power plant will collect heat from the exhaust gases of the three gas turbines to generate steam to power a turbine capable of generating an additional 200 MW of electricity. This second phase provides both environmental and efficiency benefits since it does not require the burning of any addition hydrocarbon fuel.

In addition to supplying power to the grid and gas to the domestic market, the project is also procuring and installing transformers, concrete poles and conductors to provide electricity to local communities. In the first phase, seven communities will be connected.


Local media inquiries:

Tony Okonedo (08070363092),

Precious Okolobo (08070365019)

Caroline Wittgen (08070365471).

Shell International Media Relations:

+ 44 20 7934 5550

+ 31 70 377 3600


Shell Investor Relations:

Den Haag – Tjerk Huysinga +31 70 377 3996 / +44 207 934 3856;

New York – Harold Hatchett +1 212 218 3112.

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