AGENDA Introduction: Artumas, Overview WHERE: Mtwara Concession, SE Tanzania EAPIC Forum Gas Utilization for Power Generation (Mtwara Energy Project) September, 2008 Nairobi, Kenya Mtwara Energy Project: Status and Overview Tanzania- Energy Sector East Africa Vision Regional Vision for system Integration
WHERE: Mtwara & Lindi Franchise Area - Playing Field MNAZI BAY CONCESSIONS: A STRONG FOUNDATION FOR TOMORROW Artumas Group Inc. (OSE:AGI) The Rovuma Delta Basin Underexplored hydrocarbon basin New Technologies New Opportunities Once stranded, now unlocked Early Insight Creates Exploration Opportunities Years in region, developing relationships Signed PSA in 2004 Central position surrounded by Anadarko, Shell, Petrobras, ENI and others. Canadian Leadership Experienced executive team with over 150 combined years in the energy industry A Commitment to Social and Environmental Responsibility Comprehensive CSR program Development following the strictest environmental standards Creation of the Artumas Africa Foundation Major Basins of the East African Coast
Artumas Pillars for Success With Gas:Fast Track Development, Execution Excellence GAS PROVIDES HIGH GENERATION EFFECIANCY Over Promise and Over Deliver: October 26/06 CCGT PERFORMANCE SUMMARY Artumas Corporate Strategy Integrated East Africa Energy Company Power Production, Marketing, & Delivery Oil and Gas Exploration and Development Gas Production, Marketing, & Delivery Generation plant at Mtwara went from setting of foundations to first generation in under 3 months Fully commissioned on March 3, 2007 Net Plant Power Output (MW 500 450 400 350 300 250 200 150 Power Output Efficiency 50 45 40 35 30 25 20 15 Net Plant HHV Efficiency (% 100 10 Founded in 2001, signed PSA 2004, 20% stakeholder FMO, Listed on the Norwegian Stock Exchange 2005 January 12/07 50 0 8 x GE LM6000 6 x RR Trent 7 x SGT-800 8 x GE 6B 5 0
A Shared Vision for Tanzania: Energy Hub for East Africa High voltage interconnect from Mtwara to the Tanzania integrated grid Close interconnection Arusha-Nairobi Electricity exports into Uganda via interconnected grid Extend high voltage transmission grid into Zambia, south into Mozambique CNG and Potential LNG exports to displace diesel/hfo in power generation located away from the source Gas provides least Cost (CAPEX & OPEX) for Generation fast Tanzania Challenge GENERATION CAPACITY 2008-2012 PLANT FUEL CAPACITY- Available Capacity- YEAR MW MW Existing Hydro 550 350 (average 5 yrs) 2007/8 SONGAS GAS 180 180 2001 IPTL* HFO 100 100 2006 Wartsilla Ubungo GAS 100 100 2007/2008 Wartsilla Tegeta GAS 45 45 2007/2008 Rental Ubungo-Aggreko GAS 40 40 2007-2009 Total 825 Developments Kiwira* Coal 200 200 2009/10 Kinyerezi* GAS 200 200 2011/1 Rental out GAS -150-150 2010 Increase in Hydro Hydro 100 100 2010 Total 1275 Notes of risk * Up to 2010 no spinning reserves * Songas gas availability * Maintenance of Ubungo and Tegeta Plant * IPTL Gas conversion will reduce available capacity
African power market 2002-2030 A huge market for new power requiring significant investment GAS UNLOCKING LATENT DEMAND: SUCCESS FACTORS RISK OF MEETING PLANNED OBJECTIVES New connections 500mn New generation 250GW Sector investment $560bn to 2030 2002-2010 2010 ~$4bn pa 2010-2020 2020 ~$5bn pa 2020-2030 2030 ~$8bn pa in generation alone. Lack of reliable power was the primary barrier to industrial investment in Tanzania Industrial load prevented feasible energy project investment Fit-for-purpose energy solutions were needed to unlock latent demand Procurement risk Delays in supply etc Financing projects in East Africa. Political Interference. Regulatory Risk Delays in licensing, Limited/Reduced Returns etc. Data sources: WB, IEA, WTO, IMF, BP, UNCTAD, UNDP, EIA, AfDB
CONCLUSION NATURAL GAS: OPPORTUNITY FOR INDEPENDENTS Fit for- purpose energy solutions and hydrocarbon development programs aimed at broad economic growth are are favoured over large signing bonus East Africa is a market especially suited to lean, agile developers with the ability to move quickly to execute simple PSA contracts and complex operational initiatives 3 Factors have contributed to the emergence of East Africa as the next hydrocarbon frontier: Newly integrated global gas markets Emerging local energy markets Progressive Regulatory environments energy markets Common goals: Petroleum developers and East African governments must work together to maximize the value of their hydrocarbon resources Asanteni Sana, Karibuni Mtwara na Lindi Website www.artumas.com ARTUMAS TV