Vusal%20mammadov

State Oil Company of the Republic of Azerbaijan October 14, 2015 Brussels

Mr. Vusal Mammadov

Director, SOCAR Representative Office in Brussels

Southern Gas Corridor: The Role of Azerbaijan Gas Sales

EU-­‐Azerbaijan Joint Declaration signed in January 2011 – Framework document on the strategic role of the Southern Gas Corridor (SGC) – Guiding principles for the supply of natural gas from Azerbaijan and the Caspian to Europe – Azerbaijan – enabler of the SGC – Pa r t i c u l a r r e fe r e n c e t o t h e transportation and marketing of gas in South Eastern Europe Southern Gas Corridor Groundbreaking Ceremony September 20, 2014, Baku, Azerbaijan

The Southern Gas Corridor investors

Trans-Adriatic Pipeline (TAP) AXPO

FLUXYS BP

19% 20% 5% 20% 16% 20%

ENAGAS

BP

BOTAS 30% SOCAR

Statoil 1 Expected equity percentages following compleTon of pending acquisiTons.

Shah Deniz 2 and SCP expansion1

Trans-Anatolian Pipeline (TANAP)1 12%

58%

SOCAR

NICO

LUKoil

BP TPAO

19% 28.8%

10%

10% 16.7% 15.5%

Petronas

SOCAR

4

The Southern Gas Corridor in figures • The project that transits 7 countries, • Deals with six regulatory regimes, • Involves 12 investing companies, • Includes 12 gas buyers, • Costs over 45 billion USD, • Supplies 10 bcm/a to European market at the initial stage starting from 2020, including 2 bcm/a to the SEE countries.

SD2 and the Southern Gas Corridor Multiple mega-­‐projects – $45 billion scope 26 wells $6bn

Offshore facili.es $15-­‐16bn

Sangachal Terminal expansion $2bn

SCP Expansion $5bn

TANAP $11bn

TAP $5bn

Southern Gas Corridor scope

Shah Deniz Field Total proven reserves :

Gas Production in Azerbaijan

30 bcm x6

5 bcm 2004

2014

1,2 trillion cubic meters gas 240 million tons condensate Stage 1 supplies Turkey, Georgia and Azerbaijan over the 15-year period starting from 2007, with average production of up to 9 bcm/a (Shah Deniz Stage 1 volume).

Annual production from Stage 2 will start by the beginning of 2018 and reach more than 16 bcm/a at plateau.

Prospective Fields and Structures • Absheron

SOCAR/Total/GdF PSA 350 bcm gas 45 mln tons of condensate

• Umid

SOCAR 200 bcm gas 40 mln tons condensate

• Babek

SOCAR 400 bcm gas 80 mln tons condensate

• Shafag-Asiman

BP/SOCAR PSA

• ACG Deep

ACG PSA 200 bcm gas

SGC: Vision for the Future

New gas supplies for Europe

• • • •

A superhighway that can facilitate the transportation of gas from different sources, not only from Azerbaijan but also Central Asia, Iraq and the East-Med region, Can reach additional markets in Europe, such as the Western Balkans and South Eastern Europe, TANAP will be built with double the capacity and can be scaled up to and over 30 BCM (1.1 tcf), The first pipeline project in decades to deliver new gas supplies to Europe, rather than simply reroute existing supplies, thus diversifying sources.

Thank you for your attention