[PPT] - Enefits oil shale projects in Jordan October 2010 Andres Anijalg PowerPoint Presentation

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Enefit´s oil shale projects in Jordan

October 2010

Andres Anijalg Project Manager Business Development Department Enefit

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Technology Provider

Enefit Technology license
Opportunity Analyses
Conceptual Studies
Pre-Design (bench tests)
FEED (pilot testing)
Technology package (design,

construction, operation)

Project Developer

Enefit Technology license
Resource assessment
Feasibility studies including

mining, retorting, upgrading, power production

Testing
Plant construction & operation
Possible investment

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3. Enefit Global Activities

Project: Enefit 280 construction Developer: Eesti Energia (Enefit) Project status: construction ongoing Projects: shale oil production Enefit interest: technology sale Developers: Local mining companies Project status: MoU signed negotiations ongoing Projects: shale oil + power Project status: MoU with local partners for power

pportunity analysis

for oil Projects: 38,000 bbl/d shale oil 600-900 MW power Enefit interest: project development technology sale Project status: concession agreement signed on 11. May 2010 USA Estonia China Morocco Jordan Project: 50,000 bbl/d shale oil Enefit interest: technology sale Developer: OSEC, Mitsui, Petrobras Project status: conceptual study completed

Enefit worldwide oil shale projects for oil and power production The Enefit Projects in Jordan are most advanced

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4. Enefit in Jordan

September 2006 • Enefit initial visit to Jordan November 2006 • Shale Oil / Mining Memorandum of Understanding with NRA signed October 2007

Power Project Memorandum of Understanding signed by NEPCO, Government of Jordan and Eesti

Energia April 2008

Oil Project Feasibility Study submitted to NRA

April 2008

Power Project Development Agreement signed by NEPCO, Government of Jordan and Eesti Energia

October 2008

Commencement of Concession negotiations with NRA

May 2010

Signing of the Concession Agreement with the Government

June 2010

Royal Assent

The Oil Project in Jordan was started in 2006

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5. Enefit oil shale deposit in Jordan

Location in Jordan Map of Concession Area (incl. Right of First Refusal Area) in Attarat Um Ghudran

Approximately 110 km south of Amman
50km east of Al Qatrana on the desert highway
Approximately 270 km north of Aqaba
Total OSEJ Concession Area and Right of First Refusal Area

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Area: 70 km2

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In place oil shale: 4.4 bn t oil shale

Red Sea

Jordan Saudi Arabia Syria Israel Egypt Iraq

Dead Sea

Amman Attarat Um Ghudran (Concession Area) Aqaba Al Qatrana Zarqa Refinery

West Bank Gaza

Attarat Um Ghudran - the total in place oil shale resource of Concession Area ca. 2.6 billion tons (1.5 billion barrels of shale oil)

AUG 28 Area = 23.5km2 Reserve = 1560t Area = 14.2km2 Reserve = 1153t AUG 23 (INCOSIN) AUG 22 AUG 25 AUG 21 Area = 11km2 Reserve = 1253t Area = 11.2km2 Reserve = 1700t Area = 15.5km2 Reserve = 1701t (PETROBRAS)

282000 284000 286000 288000 290000 292000 1087000 1084000 1081000 1087000

Other Blocks OSEJ Concession Area AUG30

Right of First Refusal Area

Area = 32.0km2 Reserve = 1.8 bn t oil shale (1.1 bn bbl shale oil)

Concession Area

Area = 38km2 Reserve = 2,6 bn t oil shale (1.5 bn bbl shale oil)

1078000 1075000 1084000 1081000 1078000 1075000 282000 284000 286000 288000 290000 292000

Right of First Refusal area Road

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6. Key Characteristics of the oil shale deposit

Attarat Deposit is the biggest known oil shale deposit in Jordan

Surface

Very scarce vegetation of grass and bush
No land use; nearest farm is 20km northwest

Overburden

Muwaqqar Chalk Marl Formation, partly covered by

Umm Rijam Chert Limestone Formation

Thickness varies from 25m-90m
Total overburden in Concession Area 2.0 bn m3 and in

the Right of First Refusal Area 1.7 bn m3 Oil Shale Seam

Oil shale layer variation from 10m-88m
Total over the 70km2 area 4,530 m t

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Concession Area 2,670m t

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Right of First Refusal Area 1,860m t Groundwater

Aquifer at depth of 150m-200m
Aquifer has a thickness of 150m-180m
Groundwater flows southwest to northeast
No spring or other discharge of groundwater

Oil Shale Quality

Oil Yield 9% over the two areas in average
Heating Value of ca 5.5 MJ/kg

Views on the Attarat Oil Shale deposit

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7. Enefit Projects in Jordan – Oil & Power

Enefit has two parallel projects in Jordan – Oil Shale based Oil Production and Oil Shale based Power Production

Mines

Upgrader / Treatment

Direct Burning Power Station

Oil Recovery (Enefit)

Sulphur 1200 t/d Syncrude 38.000 bld/l Electricity 440 MW Electricity 600-900 MW

Oil Shale (c. 26 m/t per annum) Oil Shale (c. 12 m/t per annum)

Oil Project Power Project

Shale Oil Gas

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Oil Project – the industry complex will be established in 2 stages with 2nd stage partially financed by 1st stage cash flows Power Project – the project will be built up in stages according to the increase in power demand

8. Development Plan

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Oil Project Direct Burning Power Station Resource & mining

Geological and hydrogeological survey
Shaft for pilot testing
Mining Studies

Pre-Development

Enefit bench and pilot testing
Oil Upgrading Pilot Program
Environmental Studies
EIA
FEED
Capital Raising
Applying for licenses and permits
Enefit 280 operations in Narva

Pre-Development

Feasibility Study
Boiler Design (Foster Wheeler)
FEED
EPC and PPA negotiations
Capital Raising

Construction 300MW Operation 600(900)MW Operation 300MW Mine Operation Mine Opening Construction 900MW Industrial Complex Stage I construction 19,000 bbl/d Industrial Complex Stage II construction 19,000 bbl/d Construction 600MW Stage II Operation Stage I Operation Pre-Development Construction Operation

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9. Key Terms for the Concession Agreement (Oil Project)
Exclusive rights to exploit oil shale within Concession Area
4 years for project development, 40+10 years for commercial production
Environmental regime established
Hydrogeology rights granted
Agreed fiscal regime

The Concession Agreement fixes the framework for developing and implementing the oil project

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10. Fiscal Regime - Royalty + Petroleum Tax

The concession will operate under a Tax & Royalty fiscal regime.

0% 1% 2% 3% 4% 5% 6% 30 60 90 120 150 Oil Price (US $ / Barrel) Royalty Rate

Royalty Petroleum Tax

0% 10% 20% 30% 40% 50% 60% 70% 1 2 3 4 5 6 R-Factor (Cumulative revenue / cumulative costs) Tax Rate

Payable on the revenues:

Minimum 1% if Brent (Real) < US$60/bbl; linear to
Maximum 5% if Brent (Real)> US$120/bbl

Tax rate depends on the Revenue (R) and Cost (C) ratio

Minimum 15% if R/C < 1.25; linear to
Maximum 65% if R/C >= 5.0

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11. Next Steps – Pre-Development Period

Resource Studies Testing + Engineering Environmental Studies General Studies + Arrangements

Geological and hydrogeological surveys will be performed in several stages to increase the knowledge of the deposit step by step and to provide input for associated studies. Additional bench and pilot scale testing is required to complete the necessary engineering studies. Resource access has to be achieved. Environmental studies for understanding the environmental impact of the industry will be

conducted. EIA and associated studies

will be performed. To bring the project to a bankable status Geological Survey

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Geophysics

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Drilling

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Mapping

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Sample preparation and conducting laboratory analyses

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Geological modeling

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Mineral Resource estimations and Recoverable Reserves Hydrogeological Survey

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Drilling water wells

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Performing pumping tests

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Water analyses

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Composing a groundwater flow model

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Determine water extraction rates and design well field for the industrial complex Access to Resource

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Large diameter drilling for accessing the resource for testing purposes Testing + Engineering

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Performing retorting tests in bench and pilot units Preparing FEED package

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Study updates based on the new geological information and test results

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Preparing of basic engineering (FEED) package for :

Mining
Oil Processing (retorting)
Oil Upgrading
Power Production
Common Facilities and

Infrastructure

Housing

Environmental Studies

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Weather monitoring and baseline data collection

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Ash and overburden leaching tests

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Waste disposal plan

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Land remediation

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Studies for reusing of ash and by products Environmental Impact Assessment (EIA)

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EIA for the oil and power projects

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Assessing and fixing the environmental limit values, quality standards and monitoring regime Product Marketing

u Updating market study u Consultations and pre-

agreements with potential off takers Feasibility Study Update

u Implementation Plan u Key project risks and mitigation

measures

u Updating of financial analyses u Updating the Bankable

Feasibility Study Financing of the Project

u Arrange financing for the

Development Stage of the Project

During the Pre-Development Phase, Enefit will focus on the following tasks with a view to reaching a bankable status with the project

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11. Next Steps - Resource Studies

Information on 49 boreholes has been incorporated into the geological model

20 boreholes inside the Concession and Right of

First Refusal Areas

18 boreholes in direct neighborhood
11 boreholes outside direct neighborhood

Current Geological Database

To better understand:

Geological setting of the oil shale
Possible fault lines and potential areas with no oil

shale

Overburden thickness and characteristics
Quality distribution of the oil shale layers (heating

value + oil yields, chemical composition, etc)

Groundwater situation and availability

The new geological exploration program will include:

A geophysical survey
Drilling of additional boreholes

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Phase I: 62 boreholes (1km spacing)

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Phase II: 43 boreholes (750m spacing)

Oil Shale analyses

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Fischer assay + heating values

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Macro- & microelements

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Mineralogy

Geological & topographical mapping
Water well drilling and hydrogeological modeling
Leaching tests

Further geological studies are required

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12. Next steps – Testing + Engineering

For pilot testings a representative bulk sample of ca 100 tons is needed EE has been considered the following alternatives for getting this sample: (1) Opening of Box Cut (2) Sinking an Exploration Shaft (3) Drilling a large diameter drill hole Currently the preparation for the large diameter drilling is ongoing for the following reasons:

u Fast drilling

the preparation, mobilization and drilling can be completed within 3 months

u Exact sampling

it is possible to take 1m interval samples

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13. Next steps – Testing + Engineering

CFB combustions tests at Outotecs 700mm CFB pilot unit

Equipment

It is envisaged that the Outotec CFB pilot facility is used for that purpose:

Ø 700 mm
recycle cyclone, char and magnetic separator
gas cleaning system
ancillary equipment

Attarat oil shale testing

For preparing the final design for the CFB plant a 60 ton oil shale sample has to be tested at the pilot plant to:

test different qualities of the oil shale
test blending according to mining plan
fix fuel specifications

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14. Next steps – Testing + Engineering

Testing:

Characterization of oil shale
Bench-scale unit for solid heat carrier process 20 kg/h
Bench-scale units to test fluidizing behavior of material
Pilot plant for combustion of spent shale or oil shale in CFB
Pilot plant for drying of oil shale

Modeling:

Enefit process model in AspenPlus
Fine particles behaviour modeling in SolidSIM
CAD drawings

Engineering:

Conceptual engineering
Basic process and plant engineering
Detailed plant design (layout, piping, electrical,

instrumentation, automation, mechanical, structural)

Approach:

Conceptual study update

3 months

Testing and basic engineering

6 -12 months

Detailed engineering

9-12 months Steps for proving the Enefit technology for the Jordanian oil shale

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Enefits oil shale projects in Jordan October 2010 Andres Anijalg - - PowerPoint PPT Presentation