1. THE ADDAX & ORYX GROUP Using Gas for Africa’s Energy Future
NOT AN OFFICIAL UNCTAD RECORD
Using Gas for Africa’s Energy Future
Thierry Genthialon
Chief Operating Officer of ORYX Oil & Gas
11th African Oil and Gas, Trade and Finance Conference & Exhibition
22-25 May 2007, Kenyatta International Conference Centre, Nairobi, Kenya

2. Table of Content Addax & Oryx Group (AOG)
2. Downstream division: Oryx Oil & Gas
3. Macro-economic Data / Status of Africa
4. Focus on LP Gas
5. Using LP Gas for Africa’s Energy Future

3. 1. Addax & Oryx Group Profile
An integrated petroleum and mining company - A fast-growing group

4. 1.1 Addax & Oryx Group Mission
To be a major player in the oil & gas industry in selected areas where we have a competitive edge
To continuously improve our safety and environmental performance
To add value in the communities in which we operate

5. 2. Downstream Division: ORYX Oil & Gas
A dynamic policy of investments in assets and networks
An essential player in
the establishment and expansion of
the Addax & Oryx Group in Africa
1989 Acquisition by AOG of the Esso petroleum depot at Dakar, Senegal
1999 Acquisition of AGIP Tanzania and TIPER (Dar Es Salaam refinery)
Inauguration of the gas and oil terminal at Cotonou, Benin and launch of ORYX Benin SA
2000 Inauguration of the gas terminal at Dar Es Salaam in TZ
Conversion of the TIPER refinery into an oil tanker depot
2001 Creation of ORYX Côte d’Ivoire SA
Acquisition of a majority holding in Phoenix in Nigeria
2002 Change of name from Adryx Diversified Holdings en ORYX Oil & Gas
The ORYX brand becomes the emblem of the Group’s storage and distribution business (infrastructure and products)
Launch of the range of ORYX lubricants in West Africa
Senegal: construction of a lorry loading station at the Dakar depot, penetration of the terrestrial market. Launch of the « Marc L » bunkering barge
Benin: strong increase in sales on the local terrestrial market, investment in thirty industrial facilities
2003 Acquisition of the 65% stake owned by ExxonMobil in Mobil Oil Mauritania. Operation carried out in partnership with the Oismine Group, a Moroccan private investor, which enables the launch of the marketing of fuel and lubricants under the ORYX brand
Accelerated development of the network in Senegal and Ivory Coast, with the construction of S/S at Yamoussoukro, San Pedro, Yopougon Attie and Meagui
Creation of ORYX Burkina Faso and opening of more than 300 LPG sales outlets
2004 Acquisition of the TZ government’s 50% stake in ORYX TZ.
Acquisition of an additional 15% stake in ORYX Benin on 30 Nov.
Creation of ORYX Gaz Côte d’Ivoire on 4 Nov in preparation for the acquisition of Shell’s LPG business in Ivory Coast
Opening of the Kissy terminal in Sierra Leone, making ORYX a major player in the marketing of petroleum products from the West African coast

6. 2.1 ORYX Oil & Gas Portfolio
Storage: 5 key terminals providing 24 hour service
+300,000 m3 HC & + 6,500 m3 LPG in 2005
Dakar, Abidjan, Cotonou, Freetown, Dar Es Salaam
Distribution
5 LPG cylinder filling plants
(Abidjan, Cotonou, Dar Es Salaam + satellites)
+600 LPG retail outlets
+100 Service stations network
(Tanzania, Cameroon, Nigeria, Benin, Burkina Faso)
+500 industrial installations
Lubricants and Specialties
ISO 9000 Blending Plant, Dar Es Salaam
Lubes and Bitumen network in East & West Africa

7. 2.2 ORYX Oil & Gas Presence in Africa45 5 36 2 3 12 55 4 4 3 2 2 1 40 10
Network of 10 service stations
HC depot 10’000 m3
Gas terminal 2’000 m3
Gas filling center
Lubricant blending plant
Bunkering terminal 10 2

8. 2.3 ORYX Oil & Gas Specific Approach
Using local competencies
Subsidiarity principle
Tailored marketing responses
Appropriate standards
Synergies with AOG Trading arm

9. 3. Macro-economic Data / Status of Africa
3.1 World Energy Consumption
3.2 Africa’s Energy Consumption
3.3 Demographic data & estimates
3.4 Evolution of Gross Domestic Product

10. 3.1 World Energy Consumption
World Energy consumption is projected to increase by 71% from 2003 to 2030.
The most rapid growth in energy demand is projected for nations outside the Organization for Economic Cooperation and Development (non-OECD nations).
International Energy Outlook 2006, Energy Information Administration

11. 3.2 Africa’s Energy Consumption by Fuel
International Energy Outlook 2006, Energy Information Administration

12. 3.3 Demographic Data and Estimates
© 2006 World Population Data Sheet, Population Reference Bureau

13. 3.4 Evolution of Gross Domestic Product
© International Energy Outlook 2006, Report #: DOE/EIA-0484(2006)

14. 4. Focus on LP Gas 4.1 What is LP Gas ?
4.2 World LP Gas Production & Consumption
4.3 Incremental LP Gas Supply & Demand Growth
4.4 LP Gas in Africa

15. 4.1 What is LPG ?
What is LPG ?
A mixture of gaseous hydrocarbons, very rich in energy content, easy to store in liquid form at low pressure (contrary to natural gas)
It originates from the refining process of crude oil or comes as associated gas in natural gas or crude oil wells
Why is it so little known ?
Table 1: the weight of LPG in world energy consumption in million Tonnes oil equivalent

16. 4.3 Incremental LP Gas Supply & Demand Growth
Sousce: Purvin & Gertz’ presentation World LP Gas Forum Chicago, October 18, 2006

17. 5. Using LP Gas for Africa’s Energy Future
5.1 Benefits of LPG
5.2 LPG: tailored for Africa
5.3 Structural Barriers to LPG Development
5.4 Making it work

18. 5.1 Benefits of LPG Main benefits Portable and powerful:
high calorific value for the same volume
Practical:
6kg cylinders for domestic use, right at the heart of the family
Economical:
non-perishable,
non-degradable
Promotion of gas forms an integral part of a strategy which is not only commercial but also social and environmental:
Making a cheaper, practical and non-toxic form of energy accessible to even the most modest homes
and at the same time helping to combat pollution and deforestation

19. 5.2 LPG: “Tailored” for Africa
“Clean”: non-toxic
Environmentally-friendly
an alternative to wood
an efficient way of fighting
deforestation
“Democratic”
beneficial for areas with
weak energy infrastructure
labour intensive
making life easier for women
OOG is committed to conducting its business using an approach based on sustainable development, requiring compliance with the most rigorous safety standards and protecting its natural and human, direct and indirect environment in the long term.
This General approach is expressed in the high standards it sets in terms of safety and the environment and by the implementation of operational procedures in conformity with international and local regulations.
Impact studies and environmental audits of its activities are initiated systematically by all its subsidiaries for each new project.
The promotion of domestic gas reflects a deep conviction on the part of the Group’s management and a genuine commitment.
The significant effort OOG has invested in organising the right conditions for successfully distributing LPG in Benin, throughout the Sahel and in Tanzania has helped to increase the use of this energy as a substitute for the wood, charcoal and paraffin generally used until now.
Through the construction of new infrastructure and its LPG marketing and distribution initiatives, OOG is committed to contributing directly and effectively to combating deforestation and air pollution in these countries.

20. 5.3 Structural Barriers to LPG Development
Lack of supply and/or infrastructure
terminals and plants
Inadequate regulations
Cylinder property right
Cylinder exchanges and cross-filling practices
Lack of standards (cylinders, appliances and filling plants)

21. 5.3 Structural Barriers to LPG Development
Limited access for poorer classes
cost of cylinder and appliances
cost of gas itself
Inappropriate taxation
import taxes
indirect LPG subsidies to “traditional fuels”
subsidies: a “curse in disguise”
Lack of awareness
from government authorities
from the public in general

22. 5.4 Making it work Supply and infrastructure Role of private sector
Full involvement of investors & distribution companies
Capital intensive industry
Slow but steady returns
Involvement in the whole supply chain
Consumer education
Support from international institutions
Commitment from international institutions
Financing collective infrastructures
Support for micro-credits
Exchange of good practices

23. 5.4 Making it work Regulations
developing adequate framework using experience from well established and structured market
opting for a cylinder deposit system
banning cross-filling
establishing a licensing system
Access for poorer classes and implication of taxes
developing an efficient network
financing solutions such as micro-credit
eliminate taxation of LPG and cylinders (import duties and VAT)
harmonizing the tax system (in case partial taxation is maintained)
Support from governments
Stability of the political and legal systems
Rules governing trade and investment
Regulations concerning industry operating and safety
standards
Involvement in fair tax / duty treatment

24. 5.4 Making it work Awareness & Consumer’s Adherence Openness to change
education campaigns
(schools, associations, role of village heads)
- safety
- applications
advertising campaigns
by marketers

25. Conclusion L.P.G. = Long-term Progress Generator
Access to modern energy is a pre-requisite to economic and social development.
Africa with its increasing production of LPG and weak infrastructure has a solution within easy reach.
It is only by combining the efforts of all stakeholders (private sector, government bodies, international institutions and public in general) that we will be able to grasp this historic opportunity.
L.P.G. = Long-term Progress Generator