May 2008

1

TRANSBALKAN PIPELINE B.V.TRANSBALKAN PIPELINE B.V.HELPE – THRAKI A.E.

Christos DimasGeneral Manager

HELPE – THRAKI A.E.The Originator and Greek

Shareholder of the BAP Project

The Developments in the Transportation of Oil from Russia and the Caspian Sea Region

andThe Burgas – Alexandroupolis (BAP)

Oil Pipeline Project

International Conference“2nd South East Europe Energy Dialogue”

Thessaloniki, 21 – 22 May 2008

INSTITUTE OF ENERGYFOR SOUTH-EAST EUROPE

May 2008

2

Russian and Caspian Main Crude Export Routes

Taishet

Dqing

Baku-

LegendMajor Oil basins

Barents Sea

Timan Pechora

East Siberia

West Siberia

Caucasus & Caspian

Volga Urals

Sakhalin

Tengiz

May 2008

3

May 2008

4

May 2008

5

Russian and Caspian Main Crude Export Routes

TaishetScovorodino

Daqing

Kozmino

Primorsk

Murmansk

Alashankou

Atasu

KumkolKenkiyak

Baku

Novorossiysk

Ceyhan

Burgas-Alex/lis

LegendExisting crude pipelines

Planned crude pipelines

Major Oil basins

Barents Sea

Timan Pechora

East Siberia

West Siberia

Caucasus & Caspian

Volga Urals

Far East &Sakhalin

Tengiz

Odessa

Supsa

May 2008

6

May 2008

7

Karatschaganal

6

Kazakhstan’s Crude Oil Export Routes

HELPE – THRAKI A.E.

Existing Soviet-era pipeline

Existing Soviet-era pipelineSupplying China with Russian oil

Aktau

Baku

To Neka

Makhachkala

Uzen

Kashagan

Mangistau

Karatschaganal

May 2008

Kurmangazy

Augusta

Trieste

Omishali

Brody

Feneshlitkye

Unecha

Odessa

Constanta

BurgasAlexandroupolis

Ceyhan

Baku

Supsa

Novorossiysk

Tengiz

Samara

Tscheljabinsk

from Surgut

ToUS-Market

Sisak

Plotsk

Gdansk

existing pipelineplanned pipelineTanker transport

Vlore

Aktau

Kashagan

Karatschaganak

Makhachkala

Tehran

Tikhoretsk

Batumi

CPC Pip

eline

OVERVIEW MAPOVERVIEW MAPCRUDE CRUDE OILOIL EXPORTEXPORTCHAINSCHAINS

Atyrau

Neka Port

Tuapse

A. C. G.Mega Structure

Oil Field

Augusta

Trieste

Omishali

Brody

Feneshlitkye

Unecha

Odessa

Burgas

Alexandroupolis

Ceyhan

Baku

Supsa

Novorossiysk

Tengiz

Samara

Tscheljabinsk

from Surgut

ToUS-Market

Sisak

Plotsk

Gdansk

Vlore

Aktau

Kashagan

Karatschaganak

Makhachkala

Tehran

Tikhoretsk

Samsun

Atyrau

Neka Port

Tuapse

A. C. G.

Balti

c

Sea

Primorsk

Kurmangazy

VentspilsButing

Mega Structure

Constanta

Azerbaijan’s Crude Oil Export Routes

8

May 2008

9

OIL CONCENTRATION IN THE BLACK SEAAND THE BOSPORUS STRAITS

TRANSBALKAN PIPELINE B.V.HELPE – THRAKI A.E.

May 2008Balance of crude oil flow shipped through the Black Sea and the Bosporus Straits during 2007(Million Metric Tons)

Youzhnaya OzereevkaNovorossiysk

Tuapse

Georgian Ports

Youzny

Feodosiya

Total Crude Oil Shipped105.8

10

Legend32,6 / 32 – Actually mln tons shipped in 2007 / Terminal throughput capacity mln tons / year

10

May 2008

11

0

20

40

60

80

100

120

140

160

0

2,000

4,000

6,000

8,000

10,000

12,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Tankers

HazardousCargo

No. of Tankers Million tons of hazardous cargo

Source: Turkish Marine Research Foundation

Number of Tankers and Volume of Hazardous Cargo (Crude oil + Products) Transiting the Bosporus Straits

May 2008

12Source: Inchcape Shipping Services-Turkey

5.2

10.7

16.918.6

12.3

3.5

6.94.9

6.44.3

2.13.4

10.812.0

8.0

2.64.2

7.5

11.210.0

3.3

6.3 5.73.1

5.4

3.2

7.9

9.5

11.4

5.5

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

5.5 5.8

2.9

4.5

0123456789

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Oct.03

Nov.03

Dec.03

Jan.04

Feb.04

Oct.04

Nov.04

Dec.04

Jan.05

Feb.05

Oct.05

Nov.05

Dec.05

Jan.06

Feb.06

Oct.06

Nov.06

Dec.06

Jan.07

Feb.07

Oct.07

Nov.07

Dec.07

Jan.08

Feb.08

Days

Actual Monthly Average Tanker Delays in the Straits - Winters(Net waiting time of tankers > 200 m LOA passing in transit - Round trip)

S/B DelaysN/B Delays

20,3 d

9,1 d

13,5 d

Traffic system improvements applied in the Straits since Nov. 2004

13,3 d 9 d

May 2008

13

BYPASSING ALTERNATIVES AND

THE BURGAS – ALEXANDROUPOLISOIL PIPELINE PROJECT

TRANSBALKAN PIPELINE B.V.HELPE – THRAKI A.E.

May 2008

14

BLACK SEA CRUDE OIL EXPORT PIPELINE ALTERNATIVES

A. Odessa – Brody –Baltic Sea

B. Constantza –Trieste

C. Burgas – Flore

D. Burgas –Alexandroupolis

E. Kiykoy – Ibrice

F. Samsun - Cheyhan

May 2008

15

WHY THE BURGAS – ALEXANDROUPOLIS PIPELINE?

TRANSBALKAN PIPELINE B.V.HELPE – THRAKI A.E.

May 2008

16

1. Cost Efficiency2. Diversification of Routings3. Political Risks

a. Political stability of territoryb. Political support

4. Technical & Technological Risks5. Environmental Risks6. Viability and Financial Risks

a. Oil availability and guaranteesb. Legal and economical governmental commitments. c. The transport cost to be financially comparable with

the existing through the Straits routing.

CRITERIA FOR SELECTING THE MOST SUITABLE BYPASS ALTERNATIVE

May 2008

Single PointMoorings

Single PointMoorings Shore FacilitiesShore Facilities

AlexandroupolisTerminal

AlexandroupolisTerminal

BLACKSEA

Mainline 36“Mainline 36“

MEDITERRANEAN SEA

Bulgaria

Turkey

Greece

AbasAlexandroupolis

APPROVEDAPPROVEDREV.

SCALE

SUBCONTRACTOR:

ENGINEERING CONTRACTOR:

CONTRACT NO: 94001-2A:

PROJECT:

CLIENT:

0

PROJECT DRAWING NO SHEET

DRAWING TITLE:

DATE ISSUE, SCOPE OF REVISION PREPARED CHECKED

Joint Venture DEP S.A./THRAKI S.A.

Burgas-Alexandroupolis Oil Pipeline Project

2nd Stage Study (Basic Design)

ILF CONSULTING ENGINEERSArabellastr. 21, D-81925 Munich

3436 1 of 1

Pipeline Routes and Facilities Map 1:1.000.000

II - DW - AL - AL - 010043 - 0

10.12.01 First Issue (For Presentation of the Project) Buchauer

approx.1:1 Mio.

Millim Heinz

Loading LinesLoading Lines

Pumpstation 2 of Alternative A

Pumpstation 2 of Alternative A

Burgas

Burgas Marine FacilitiesAlternative A/B1

Burgas Marine FacilitiesAlternative A/B1

Burgas Terminal Alternative B3

Burgas Terminal Alternative B3

Burgas Terminal Alternative A/B1

Burgas Terminal Alternative A/B1

Burgas Marine FacilitiesAlternative B3

(Single Point Moorings)

Burgas Marine FacilitiesAlternative B3

(Single Point Moorings)

Pumpstation 2 of Alternatives B1/B3Pumpstation 2 of

Alternatives B1/B3

Route AlternativeB1/B3

Route AlternativeB1/B3

Route ARoute A

Virsini

17

BURGAS – ALEXANDROUPOLIS OIL PIPELINE

Source: ILF STUDY

May 2008

18

PROJECT CHARACTERISTICS FOR THROUGHPUT OF 35 MLN TONSBASED ON ILF STUDY, SUBJECT TO CHANGE UPON COMPLETION OF STUDY UPDATING

Alexandroupolis Tank Farm and Marine Facilities

Pipeline

BurgasTank Farm and Marine Facilities

Capex

• Main Pipeline Length: 256 ÷ 279 km• Overall Pipeline Length: 280 ÷ 303 km• Pipeline Diameter: 36“• Intermediate Pumpstation

• Tank Farm Capacity: 450.000 m3 + 2 Swing Tanks x 20.000 m3

• Marine Facilities: 2 Piers x 2 Berthing Points for Tankers of 150.000 dwt

• Total CAPEX for Both Countries Including Facilities for 300.000 dwt tankers in Alex/lis:

• 1 Bln Euros (updated prices for 2007)

• Tank Farm Capacity: 750.000 m3 + 2 Swing Tanks x 20.000 m3

• Marine Facilities: 2 SPMs x Accommodating 2 Tankers of 300.000 dwt each

May 2008

19

PROJECT BACKGROUND1993-1994 Athens • Concept of the Burgas – Alexandroupolis

Project by the late N. Gregoriadis - 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.

Sep. 2000 Moscow • Establishment of the Project’s Trilateral Working Committee among Bulgaria, Greece and Russia.

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

Jan. 2003 Athens • Signing of a Political Memorandum among Bulgaria and Greece.

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.

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 “Transbalkan Pipeline B.V.” in Neterlands.

May 2008

20

NEXT STEPS OF THE TRANSBALKAN PIPELINE BV

• Updating of the Project’s Studies and its time schedule

• Preparation and signing of the Host Government Agreements

• Licensing

• Financing

• Construction

May 2008

21

– Pipeline Consortium Burgas-Alexandroupolis LtdGazprom NeftRosneftTransneft

RUSSIAN SIDE( 51 % )

BULGARIAN SIDE( 24.5 % )

GREEK SIDE( 24.5 % )

JSC Pipeline Burgas-Alexandroupolis BGBulgargazTechnoexportstroy

HELPE – THRAKI A.E.Burgas-Alexandroupolis Oil Pipeline

Hellenic Petroleum S.A.Latsis Group ( 23,5% )Prometheus Gas Group

Greek State ( 1% )

TRANSBALKAN PIPELINE BV SHAREHOLDERS

Kazakhstan’s Crude Oil Export RoutesBLACK SEA �CRUDE OIL EXPORT PIPELINE ALTERNATIVESBURGAS – ALEXANDROUPOLIS OIL PIPELINEPROJECT CHARACTERISTICS FOR THROUGHPUT OF 35 MLN TONS�BASED ON ILF STUDY, SUBJECT TO CHANGE UPON COMPLETION OF STUDY UPDATING�PROJECT BACKGROUNDNEXT STEPS OF THE �TRANSBALKAN PIPELINE BV