April 2010

Burgas – Alexandroupolis

Pipeline

1

Pipeline

Christos DimasGeneral Manager HELPE S.A.-THRAKI S.A.

Director TBP Greece

Greek-Bulgarian Cooperation in the Energy Sector

Sofia, Thursday April 29, 2010Organized by the Institute of Energy for South

East Europe (IENE) in association with the Hellenic Business Council in Bulgaria (HBCB)

April 2010

Russian and Caspian Main Oil Fields

Taishet

Barents Sea

Timan Pechora

East

Siberia

West Siberia

Sakhalin

2

Dqing

Baku-

Legend

Major Oil basins

Caucasus & Caspian

Volga Urals

Tengiz

Kachagan

April 2010

Russian and Caspian Main Crude Export Routes

Primorsk

Murmansk

Barents Sea

Timan Pechora

East Siberia

West Siberia Far East &

Sakhalin

3

TaishetScovorodino

Daqing

Kozmino

Alashankou

Atasu

KumkolKenkiyak

Baku

Novorossiysk

Ceyhan

Burgas-Alex/lis

LegendExisting crude pipelines

Planned crude pipelines

Major Oil basins

Caucasus & Caspian

Volga Urals

Tengiz

Odessa

Supsa

April 2010

Russian and Caspian Crude Oil Production(Million Metric Tons)

500

600

700

800

TURKMENISTAN

AZERBAIJAN

KAZAKHSTAN

RUSSIA

4

0

100

200

300

400

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

April 2010

Russian and Caspian Crude Oil Exports(Million Metric Tons)

400

500

600

TURKMENISTAN

AZERBAIJAN

KAZAKHSTAN

RUSSIA

5

0

100

200

300

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

April 2010

OIL CONCENTRATION IN THE BLACK SEA

6

OIL CONCENTRATION IN THE BLACK SEA

AND THE BOSPORUS STRAITS

April 2010

Youzhnaya Ozereevka

Novorossiysk

Youzny

FeodosiyaKavkazKerch

Balance of crude oil flow shipped through the Black Sea and the Bosporus Straits during 2008 (Million Metric Tons)

Novorossiysk

Tuapse

Total Crude Oil Shipped105

10

Legend– Actually mln tons shipped in 2008 / Terminal throughput capacity mln tons / year 2009

Supsa

April 2010

Youzhnaya Ozereevka

Novorossiysk

Youzny

FeodosiyaKavkazKerch

Balance of crude oil flow shipped through the Black Sea and the BosporusStraits during 2009 (Million Metric Tons)

Novorossiysk

Tuapse

Batumi

Total Crude Oil Shipped116

Approx.10

Legend32,6 / 32 – Actually mln tons shipped in 2009 / Terminal throughput capacity mln tons / year 2009

Supsa

Total Black Sea Ports Crude Oil Export Capacity in 2009 153 Million Metric Tons)

April 2010

9,5

11,4

9,6 10,716

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

Days

S/B Delays

N/B Delays

Actual Monthly Average Tanker Delays in the Straits - Winters

(Net waiting time of tankers > 200 m LOA passing in transit - Round trip)

20,3 d

13,5 13,3

Traffic system improvements

applied in the Straits since Nov.

10 d

9

5,2

10,7

16,9

18,6

12,3

3,5

6,9

4,96,4

4,3

2,13,4

10,812,0

8,0

2,64,2

7,5

11,210,0

3,3

6,3 5,7

3,1

5,4

2,33,3 3,7 3,7

4,9

2,2

5,4

7,4 7,8

2,9

3,2

7,95,5

3,1

5,1

3,5

4,5

3,3

1,7

3,0

8,7

9,6

8,1

2,7

4,1

5,6

10,7

7,8

2,5

5,55,8

2,9

4,5

1,8

3,03,5 2,9

3,9

1,9

5,1

6,76,9

3,4

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

Οκτ.0

3

Νοε.

03

∆εκ

.03

Ιαν.0

4

Φεβ

.04

Οκτ.0

4

Νοε.

04

∆εκ

.04

Ιαν.0

5

Φεβ

.05

Oct

.05

No

v.0

5

Dec

.05

Ιαν.0

6

Φεβ

.06

Oct

.06

No

v.0

6

Dec

.06

Ja

n.0

7

Feb

.07

Oct

.07

No

v.0

7

Dec

.07

Ja

n.0

8

Feb

.08

Oct

.08

No

v.0

8

Dec

.08

Ja

n.0

9

Feb

.09

Oct

.09

No

v.0

9

Dec

.09

Ja

n.1

0

Feb

.10

9,1

9 d6.6 d

10 d

April 2010

Flows of Eurasian Crude Oil Through the Bosporus(Million Metric Tons)

120

140

160

180

200

High Scenario

Base Scenario

10

0

20

40

60

80

100

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

April 2010

Black Sea Crude Oil Export Alternatives Bypassing the Straits

A. Odessa – Brody –

Baltic Sea

B. Constantza – Trieste

C. Burgas – FloreTrieste

Brody

Feneshlitkye

Unecha

Samara

Tscheljabinsk

from Surgut

Plotsk

Gdansk

existing pipeline

planned pipeline

Tanker transport

Karatschaganak

OVERVIEW MAP

CRUDE CRUDE OILOIL EXPORTEXPORTCHAINSCHAINS

Atyrau

Oil Field

Trieste

Brody

Feneshlitkye

Samara

Tscheljabinsk

from Surgut

Plotsk

Gdansk

TO CH

INA

Atyrau

Baltic Sea

A

Primorsk

Ventspils

Buting

Unecha

TO CHINA/JAPAN

THROUGH SIBERIA

Trieste

Brody

Feneshlitkye

Unecha

Samara

Tscheljabinsk

from Surgut

Plotsk

Gdansk

existing pipeline

planned pipeline

Tanker transport

Karatschaganak

OVERVIEW MAP

CRUDE CRUDE OILOIL EXPORTEXPORTCHAINSCHAINS

Atyrau

Oil Field

Trieste

Brody

Feneshlitkye

Samara

Tscheljabinsk

from Surgut

Plotsk

Gdansk

TO CH

INA

Atyrau

Baltic Sea

A

Primorsk

Ventspils

Buting

Unecha

TO CHINA/JAPAN

THROUGH SIBERIA

11

D. Burgas –Alexandroupolis

E. Kiykoy – Ibrice

F. Samsun - Cheyhan

Kurmangazy

Augusta

Trieste

Omishali

Feneshlitkye

Odessa

Constanta

BurgasAlexandroupolis

Ceyhan

Baku

Supsa

Novorossiysk

Tengiz

ToUS-Market

Sisak

Vlore

Aktau

Kashagan

Makhachkala

Tehran

Tikhoretsk

Batumi

CPC Pipelin

e

Atyrau

Neka Port

Tuapse

A. C. G.Mega Structure

Augusta

Omishali

Feneshlitkye

Odessa

Ceyhan

Baku

Tengiz

Sisak

Vlore

Makhachkala

Tehran

Samsun

Atyrau

Neka Port

Tuapse

Alexandroupolis

B

C

D E

F

A

Kashagan

Kurmangazy

Supsa

Tikhoretsk

NovorossiyskConstanta

Aktau

Mega StructureA. C. G.

Black Sea

To

USA and

North Europe

Kiykoy

Ibrice

Burgas

Kurmangazy

Augusta

Trieste

Omishali

Feneshlitkye

Odessa

Constanta

BurgasAlexandroupolis

Ceyhan

Baku

Supsa

Novorossiysk

Tengiz

ToUS-Market

Sisak

Vlore

Aktau

Kashagan

Makhachkala

Tehran

Tikhoretsk

Batumi

CPC Pipelin

e

Atyrau

Neka Port

Tuapse

A. C. G.Mega Structure

Augusta

Omishali

Feneshlitkye

Odessa

Ceyhan

Baku

Tengiz

Sisak

Vlore

Makhachkala

Tehran

Samsun

Atyrau

Neka Port

Tuapse

Alexandroupolis

B

C

D E

F

A

Kashagan

Kurmangazy

Supsa

Tikhoretsk

NovorossiyskConstanta

Aktau

Mega StructureA. C. G.

Black Sea

To

USA and

North Europe

Kiykoy

Ibrice

Burgas

April 2010

By-pass Pipeline

Length(Km)

Pros / Cons

A Odessa – Brody –Plock – Gdansk

1.480 High investment; Export terminals in Gdansk & Rostock can be used; Problem again with the Danish Straits

B Constanza –Trieste Pipeline

1.375 Relatively high initial investment requirements, direct pipeline supply of Central European refineries with Caspian light grades through the Trans Alpine Pipeline (TAL)

C Burgas – Vlore 913 Long and mountainous route, relatively high initial investment requirements, supply to refineries along the route in FYROM & Albania,

Black Sea Crude Oil Export Alternatives Bypassing the Straits

12

C Burgas – VlorePipeline (AMBO)

913requirements, supply to refineries along the route in FYROM & Albania, challenging financing due to political risk

D Burgas –Alex/polisPipeline (BAPLine)

256 Short route, smooth terrain, relatively low initial investment requirements; Studies and design ready; Permits incl. EIA first stage finished, therefore fast implementation feasible; Diversification of oil routing. Cost efficient comparable with the Straits; European Union corridor.

E Kiyikoy – Ibrice Pipeline

200 Short route, smooth terrain, relatively low initial investment requirements; Russian and Caspian Black Sea exports depending on one country.

F Samsun – Ceyhan Pipeline

550 Long and mountainous bypass route, Russian, Caspian and Black Sea exports depending on one country, use of BTC pipeline corridor / supply to Kirikkale refinery

April 2010

BURGAS – ALEXANDROUPOLIS PIPELINE

13

BURGAS – ALEXANDROUPOLIS PIPELINE

April 2010

PROJECT BACKGROUND1993-1994 Athens • Establishment of THRAKI S.A, which is the initiator and promoter of the project..

Feb. 1998 Athens • Establishment of the J/V HELPE S.A. – THRAKI S.A., the Greek participant in the

project.

Jan. 2002 Project Studies • Extensive studies completed by ILF Consulting Engineers.

Nov. 2004 Athens • Political Memorandum initialed among Bulgaria, Greece and Russia.

Jan. 2005 Moscow • Legal and economical transit framework initially agreed.

• Group of Initiating Companies (GIC) created.

Apr. 2005 Sofia • Russia, Bulgaria and Greece signed a Memorandum on cooperation.

14

Sep. 2006 Athens • Russia, Bulgaria and Greece signed a Trilateral Declaration of Cooperation.

Mar. 2007 Athens • Russia, Bulgaria and Greece signed an Intergovernmental Agreement.

6 Feb. 2008 Amsterdam • Incorporation of the International Project Company of the Project “Trans-

Balkan Pipeline B.V.” in Netherlands.

Oct. 2008 • Project Studies Update awarded to ILF

2009 • Elaboration of the technical studies

• Preparation of the environmental studies

• Public consultation procedure

• Transportation Agreement issues

2010 • Completion of Project Technical studies expected by the end of June 2010.

• Planned submission of ESIA to the Ministries in both countries for

approval

• Transportation Agreement Issues

April 2010

PRELIMINARY PROJECT CHARACTERISTICS FOR A CAPACITY OF 35 ÷ 50 MTA

Pipeline

Burgas

• Main Pipeline Length: 256 km

• Overall Pipeline Length: 336 km

• Main Pipeline Diameter: 42“

• Capacity 35÷50 Mta

• Tank Farm Capacity: 480 ÷ 640.000 m3

15

Alexandroupolis Tank Farm and Marine Facilities

BurgasTank Farm and Marine Facilities

• Tank Farm Capacity: 480 ÷ 640.000 m3

• Marine Facilities: 2 SPMs for 150.000 dwt Tankers each

• Tank Farm Capacity: 900 ÷ 1.200.000 m3

• Marine Facilities: 2 SPMs for 300.000 dwt Tankers each

April 2010

General Indicative Map of the ProjectGeneral Indicative Map of the Project

16

April 2010

Location Options Jetty/SPMs (Burgas)

17

April 2010

Studied Alternatives in Alexandroupolis

18

April 2010

Location Option (Alexandroupolis)

19

April 2010

� Environmental Studies under review

� Finalization of Technical studies in June 2010

� Submission of the Environmental studies to the ministries in both

Countries for approval

CURRENT ACTIVITIES (2010)

Countries for approval

� Public Consultation Procedures and Query Management Procedure

� Transportation Agreement

FUTURE ACTIVITIES

� HGA issues

� Detail design

� Permitting / Land acquisition issues

� Procurement / Construction 20

April 2010

Throughout planning, development and implementation of the project, TBP is

committed to:

�protecting the environment;

�respecting local communities and cultural heritage;

TBP’s Values and Principles

21

�safeguarding public health and occupational health and safety;

�employing best available technologies;

�applying highest safety standards to minimise any risks;

�applying international best practice Environmental and Social performance

Standards to develop the Project, and

�working in a constructive and continuous dialogue with the population in the

project area , PCDP ( Public Consultation and Disclosure Plan), NGOs and

the relevant authorities and other stakeholders.

April 2010

� Public consultations have started since the beginning of the technical studies (November 2008)

� Numerous presentations of the project and consultations took place with various statutory stakeholders, regarding the Technical and Environmental data of the project.

� Public presentations were held in municipalities along the route of pipeline

Public Consultation Disclosure Plan (PCDP)

22

� Public presentations were held in municipalities along the route of pipeline where TBP presented to the local public its studies of the terrain, the environment, information about the current state of the project and of the reviewed alternative facility locations.

� Visit to the CPC Marine International Terminal and Tank Farm in Novorossiysk for representatives of the public and media from Bulgaria and Greece.

� Press conferences and interviews to the press.

� Informative meetings with Ministries and Supervised Organizations/Entities.

� A Query Mechanism has been set up in each country.

April 2010

SOME MAJOR CONSULTANTS OF TBP

� ILF Consulting Engineers

� Environmental Resources Management (ERM)

� Allen & Overy LLP , Law Firm

page 23

� Allen & Overy LLP , Law Firm

� Société Générale, Corporate & Investment Banking

� KPMG, Audit Advisor

� Deloitte & Touche (DT), Tax Consultant

� Cambridge Energy Research Associates(CERA)

� Local Consultants for Bulgaria/Greece