October 31, 2008

SPDC Begins Commissioning of Afam VI Power Plant

The Shell Petroleum Development Company, as operator of the joint venture with the Nigerian National Petroleum Company, Agip and Total, has begun commissioning the first turbine of the Afam VI power plant, the Okoloma gas plant and associated gas wells in Nigeria, collectively known as the Afam gas and power project.

The commissioning of the second turbine of the Afam VI power plant is planned for early November 2008. Performance tests on the first gas turbine are expected to be finalized by early November 2008.

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.

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 200MW of electricity. This second phase provides both environmental and efficiency benefits since it does not require the burning of any addition hydrocarbon fuel.

Mutiu Sunmonu, managing director of the Shell Petroleum Development Company (SPDC), said: "The new power plant, with a design capacity of 650MW, has already supplied approximately 64,000MWh of electricity for Nigerian consumers, and by 2008 year-end the first phase of the plant should be generating approximately 450MW."