TURKISH PETROLEUM

2019 ANNUAL REPORT 2019

ANNUAL REPORT TURKISH PETROLEUM -

www.tpao.gov.tr deep- rooted advanced past technology

We have been working continuously with a faith that makes this geography our homeland for centuries with 65 years' experience. Beyond being a national asset, we conduct innovative actions using the latest technologies. We blend our faith and experience with technology, and get stronger with courage that we take from our roots. “We get strength from civilisation, wisdom and science and march accordingly.” table of contents

» Who We Are 8 TPAO at a Glance 12 History 14 Strategies 15 Vision, Mission and Values 16 Board of Directors 16 Organization Chart 18 Message from General Manager 20 Offshore Operations » TPAO in Turkey 28 Oil & Gas Exploration 34 Oil & Gas Production 36 Health, Safety and Environment » National and Domestic Technology 40 R&D Centre 46 Supply and Logistics » TPAO Outside Turkey 50 International Projects » Corporate 54 Human Resources 56 Finance 60 Contact Us we produce vigorously

We keep leaving a trace for our country, and we are proud of having laid the foundations of 17 big organisations which are accomplished to become great values of our country within more than a half century. Number of Wells Drilled Reserve Added with Drilling in 2019 Exploration in 2019

Legal Duties Paid in 2019 Who We Are 120 Million30 BOE Number of Employees 232,700Meters TPAO at a glance 3,686 2.5Billion TRY

Countries outside Turkey

Daily Production 5

Azerbaijan Thousand131 BOE Iraq Afghanistan Russia TRNC

Established in 1954

Profit (Loss) of the period Drillship Turkish Petroleum

Capital Yavuz Billion1.2 TRY

Drillship

5.2Billion TRY Annual Report 2019 Drillship Fatih Kanuni 08 09 Finance 2019 unit

Sales Revenues 929 million US dollars

Current Assets 506 million US dollars

Fixed Assets 5,230 million US dollars

Equities 3,181 million US dollars International Investment Short Term Liabilities 585 million US dollars

Long Term Liabilities 1,970 million US dollars $ Current Ratio 0.87 rate Cash Ratio 0.23 rate Million 854 Financial Leverage Ratio 0.45 rate Domestic Investment

Seismic Activities 2019 unit

2D Offshore 3,164 km $ 2D Onshore 517 km 3D Offshore 10,005 km² Million 815 3D Onshore 1,141 km²

Drilling Activities 2019 unit

Length in Meters 232,700 meter

wells

Number of Wells 120 Turkish Petroleum

Production Activities 2019 unit

Domestic 17.1 million BOE

International 30.8 million BOE Annual Report 2019 Total 47.9 million BOE

10 11 history 2018 First unconventional well drilling: Gözalan-1 First1970 natural gas was discovered Our first deep sea Hamitabat 2001 drilling started with 1993 Project SCP 2011 our national drillship 1963 Our corporation 1986 We are in We are in Turkish Republic of Fatih, Alanya-1 Turkish Petroleum started Kırıkkale Refinery Azerbaijan Northern Cyprus Service Stations its first offshore was established were established The second Turkish deep-sea exploration, Payas-1 We are in drillship Yavuz was purchased Kazakhstan 1966 1974 2014 İPRAGAZ was BOTAŞ was We are in established established Russian A corporation1988 for Federation 1960 Silivri2007 Natural Gas İzmit Refinery international activities Storage Facilities was established was established

1954 TPAO 2019 was established 8 offshore drillings were performed (3 shallow, 5 deep)

First1958 oil discovery: Petrochemistry1965 First economic2004 offshore Germik-1 facilities were gas discovery in established 1971 Black Sea: Ayazlı-1 2012 First oil discovery 1991 We are in in Adıyaman, Domestic Production Afghanistan Adıyaman - 2 Record of 50 years: 2017 Discovery of Karakuş oil The first Turkish 1985 field deep-sea drillship TPAO ranked 63th among The Seismic Ship Barbaros The biggest1961 reserve Baku Tbilisi1999 Ceyhan Project Fatih was purchased the 500 biggest companies Hayreddin Paşa was of Turkey: Batı Raman Turkish Petroleum of the world purchased Field Opening 1967of the first pipeline (Batman-Dörtyol, İskenderun)

Oil discovery2010 in Libya İzmir - Aliağa Refinery was established We are in Iraq Annual Report 2019

12 13 strategies We determined our road map and core strategies in accordance with the “National Energy and Mining Policy” of the Ministry of Energy and Natural Resources.

FOCUSING ON OFFSHORE EXPLORATION WITH PRIORITISING THE UTILISATION OF NATIONAL AND NATIONAL CAPACITIES DOMESTIC TECHNOLOGY • National operation capacity with the deep-sea drill • Integrating technology and artificial intelligence to all vision ships processes To be a competitive and dynamic national • Nationalisation of offshore drilling technologies and • Nationalising value-added products and services E&P company, aspiring to meet the oil and services • Enabling improvements for domestic suppliers and gas demand of our country. • Seismic data gathering and drilling in the supporting them Mediterranean Sea, Black Sea and Marmara Sea • Prioritising national industry for the machines, DEVELOPING NEW EXPLORATION AXES AND equipment and software utilised APPROACHES ESTABLISHING LEAN AND • Focusing on the regions which have not been MODERN MANAGEMENT MENTALITY mission Conducting domestic and international explored enough • Centralising all procurement processes exploration and production activities to increase • Evaluating the current fields with new approaches • Improving the efficiency with a simple organisational • Developing and nationalising seismic data- structure the oil and gas production of our country. processing capacity • Establishing constant cost improvement culture DEVELOPING THE INTERNATIONAL PROJECT PORTFOLIO DEVELOPING A TRANSPARENT AND ACCOUNTABLE • The production target is 200 thousand barrels per SYSTEM INFRASTRUCTURE day from international projects by 2023. • State-of-the-art corporate resource planning values • Seizing suitable opportunities in the near countries applications • Respect • Developing the existence in the current projects • Active use of the corporate risk and quality • Courage USING NEW PRODUCTION METHODS management systems • Increasing productivity with fracking the tight • Periodic follow-up of the corporate strategies and • Determination reservoirs objectives Turkish Petroleum • Common use of downhole heaters • Making all technical data accessible from a single • Professionalism platform • Water and carbon dioxide injection • Egalite HAVING A SMART AND LEARNING ORGANISATION • Polymer gel and acid applications • Cross Training, Executive Training Programs INCREASING PRODUCTION WITH UNCONVENTIONAL ACTIVITIES • Web-Based Training Platform • Synchronic fracking operations in Thrace and CARRYING OUT AN OPERATION SENSITIVE TO OCCUPATIONAL HEALTH, SAFETY AND ENVIRONMENT South-Eastern Anatolian Regions Annual Report 2019 • Complying with international quality standards in • Explore and Produce unconventional hydrocarbon terms of occupational health and safety potential of Turkey • Environmentally and nature conscious, uncompromising operation applications

14 15 board of directors and Organization Chart VICE PRESIDENT Abdurrahman TİRYAKİ MELİH HAN BİLGİN CHAIRMAN Production ALPARSLAN BAYRAKTAR MEMBER Engineering EDİP MÜYESSEROĞLU MEMBER Health, Safety and Environment MEHMET FERRUH AKALIN MEMBER Support Services

Supply and Logistics

Accounting and Finance CEO/GENERAL MANAGER Melih Han BİLGİN Offshore Operations

Strategy Development Batman, Adıyaman and Trakya Regional Offices

Human Resources

Inspection Board VICE PRESIDENT Internal Auditing Mehmet Ferruh AKALIN

Legal Consultancy Exploration

International Projects and Business Development R&D Centre

Bureau of the Board Information Technologies Turkish Petroleum

Private Secretary

Corporate Communications

Security Annual Report 2019

16 17 Offshore drillings and seismic exploration activities that we carried stakeholders for construction of Dörtyol-Ceyhan pipeline in out in 2019 concretely put forward our high expectations and order for facilitate crude oil that we produce in South-eastern message ambition in this field. 5 deep-sea drillings with national drill ships Anatolia region to get into international markets is still ongoing. were completed cost-effectively as planned. 3 shallow-sea wells Necessary work is also carried out multilaterally in order to from general were drilled by our contractors. On the other hand, seismic data was develop infrastructure and surface facilities in compliance with collected simultaneously in the Mediterranean Sea, Marmara Sea production levels that we aspire and plan for our country. and Black Sea, and it marked another important historical record. We are aware of the fact that facilitation and acceleration of manager With the awareness that possible successful results that can be access to information within the framework of “need-to-know” achieved in offshore drillings are significant for both our corporation To supply oil and natural gas consumed by our fast principle will let us reach new discoveries by paving the way and our country to attain 2023 goals, drilling and seismic activities growing and developing country from domestic resources for different perspectives. In this respect, Digital TPAO project in accordance with our offshore business plans will continue in the increasingly is the main goal of TPAO as the national oil was commenced in 2019, and all data collected in onshore and guidance of science and without slowing down. company of Turkey. offshores were transferred to the relevant platform. Within the framework of our strategy for onshore, we focused on Activities that we carried out in 2019 provided historical Quality Management System Certificate was obtained as a way new fields and fields with high shale potential. In this regard, the achievements for our country and our corporation in of ensuring efficiency in management in 2019, it was adopted fact that 3D seismic data were collected in onshore, especially in different fronts. While a record of the last 20 years was as a constitution of management understanding, and different Silopi basin over 500 km2 which has a really challenging geography broken in domestic production, the highest level of our management systems were integrated within our corporation. presents valuable data for our future activities. Drilling activity was history was achieved in domestic and international total In order to ensure sustainability of the success, we will continue realised 233 thousand meters in 120 wells by carrying out the most production. Production growth was ensured by obtaining applying modern management principles in our corporation. intense onshore operation of the last 30 years. Besides, drillings of 3 maximum efficiency through new production techniques wells for shale gas-oil which have potential as a game changer for Continuous cost improvement culture was established in order to used in the current fields as well as the newly explored our country were completed, and fracking operations are ongoing. follow up our costs effectively and to bring them to competitive areas. On the other hand, drillings that we carried out in levels by identifying improvement areas. Thus, downtrend of unit the Mediterranean Sea were determinative in terms of As a result of our strategy to focus on exploration-production, there exploration and production costs was maintained in 2019. Our protection of the offshore interests of our country. Our has been considerable increase in discovery success rate as well. main principle was “cost instead of activity saving” as managing determination in offshore was concretely put forward with 5 In this context, reserves equivalent to 30 million barrels of petroleum our costs and unit costs were reduced by this means while deep-sea wells that we drilled in 2019. which is almost 2 times more than what we produced in 2019 were making record high domestic and international investments. added with discovery. Furthermore, considerable contribution was By complying with the budget discipline, our corporation Furthermore, production per employee was increased without made to the daily production with discoveries made thanks to new made 815 million dollars domestic investment with 93% decreasing the number of employees. approaches developed with some formations where there was budget realisation rate and 1,66 billion dollars of domestic not any production before. Fracking with acid technique in Batı TPAO, national oil company of our country which is in the centre and international total investments 89% budget realisation Raman field was implemented and piloted in 3 wells, production of energy geopolitics, marked historical success in 2019 with its rate in 2019, which was recorded as the year in which the was increased 3 times in these wells, and it has been planned to strategies established and activities carried out in line with the highest investment of the corporation’s history was made. disseminate this method in the next years. As a result of our all basic strategies and operation programs of the Presidency and Our corporation has made 6.7 billion dollars contribution to exploration and production activities, our domestic production National Energy and Mining Policy of the Ministry of Energy and the government as a legal obligation in the last 10 years. 97% passed 50 thousand BOE daily level and domestic and international Natural Resources. of the total investment was made as exploration-production total production passed the highest level of the history with 150 investment as a reflection of the strategy of separating Hereby, I would like to express my deepest gratitude to all of thousand barrels of oil equivalent. oil field services from the structure of the corporation and my colleagues who made this historical year come true with focusing on exploration-production. Debt stock was also We also strengthened our logistics infrastructure in 2019. Our their dedication and efforts as TPAO family and also thank our decreased along with historical high investments in 2019 in shorebase where logistic support is provided for offshore operations stakeholders that we cooperate with. line with the sustainable financial strategy. All the above- was established in Taşucu, and deep-sea drillings were supported mentioned investments and loan repayments were totally with national capability from this centre uninterruptedly and covered from the domestic sales revenues and revenues cost-effectively. In order to have continuous sale opportunity in from our partnerships abroad without putting a burden on Thrace where national gas is mainly produced, works started to Melih Han BİLGİN the national budget. integrate into the national transmission system, and it was planned President & CEO Turkish Petroleum Corporation to complete it as soon as possible. The process with the relevant

18 19 offshore operations Brave and Resolute Ship of the Blue: Yavuz

Yavuz will continue its drilling activities in the Mediterranean Sea while you are looking at this poster.

Intensive seismic activities have been carried out drillship YAVUZ that we purchased at the end of 2018. in recent years in order to explore hydrocarbon TP-OTC which was restructured in 2019 provides all potential of our seas. Based on the interpretation of engineering and technology services for offshore oil Strength all these geological and geophysical data, shallow and natural gas exploration activities. and deep-sea drilling activities were initiated. In stemming from this regard, offshore drilling activities are ongoing with national drillship FATİH that we included in Turkey’s roots: our inventory at the end of 2017 and with national

Fatih, Yavuz and Within this scope; • Wireline Services • TRS and Fishing Services • Subsea Wellhead Services TURKISH Kanuni • D&M Services • Drilling Fluid Services • MPD Services • H2S Services PETROLEUM • Cementing Services are provided.

20 21 Blue Homeland. down toreachourgoalsontheroad activities willcontinuewithoutslowing Our offshoreoilandgasexploration the Blue:Fatih and Inspiration of Source ofPride PETROLEUM TURKISH Alanya -1 Fatih drillship wells drilledwith 140 days Operation Duration(Planned): 5,200 m Drilling Depth(Planned): 2,564 m Water Depth: 05.11.2018 Start DateofDrilling: 24/7 non-stop Work schedule: Finike -1 102 days Operation Duration(Planned): 5,200 m Drilling Depth(Planned): 2,256 m Water Depth: 05.05.2019 Start DateofDrilling: 24/7 non-stop Work schedule: Magosa -1 92 days Operation Duration(Planned): 5,600 m Drilling Depth(Planned): 916 m Water Depth: 15.11.2019 Start DateofDrilling: 24/7 non-stop Work schedule: 23 Annual Report 2019 Turkish Petroleum wells drilled with Shallow Yavuz drillship water wells

Karpaz - 1 Güzelyurt - 1 Kuzey Erdemli - 1 Kuzupınarı - 1

Work schedule: Work schedule: 24/7 non-stop 24/7 non-stop Work schedule: Work schedule: 24/7 non-stop 24/7 non-stop Start Date of Drilling: Start Date of Drilling: 23.07.2019 08.10.2019 Start Date of Drilling: Start Date of Drilling: 22.11.2018 17.01.2019 Water Depth: Water Depth: 970 m 2,696 m Water Depth: Water Depth: 102 m 88 m Drilling Depth (Planned): Drilling Depth (Planned): 3,275 m 5,675 m Drilling Depth (Planned): Drilling Depth (Planned): 2,100 m 4,100 m Operation Duration (Planned): Operation Duration (Planned): 64 days 84 days Operation Duration (Planned): Operation Duration (Planned): 66 days 124 days

Gümüşyaka - 1 As an environment friendly organization, TPAO carries out all of its operations in accordance with the international rules and Work schedule: regulations by giving a particular 24/7 non-stop importance to occupational health

and safety. Turkish Petroleum Start Date of Drilling: 15.08.2019 "We proceed our operations with the awareness that the successful results in the offshore Water Depth: fields, which have high potential of 59 m hydrocarbons, can enable TPAO and our country to achieve the Drilling Depth (Planned): targets of 2023."

1,675 m Annual Report 2019

Operation Duration (Planned): 71 days

24 25 we observe depth With the pride of being a power which explores, produces and sales hydrocarbon with its own means, we leave deep traces in air, land and sea. TPAO in Turkey exploration our exploration activities Our hydracarbon exploration activities have gained momentum in 2019 especially in offshore fields, and onshore in the South-eastern Anatolia, Thrace and other fields with high potential of hydrocarbons. Field Geology 2019 14 10/30 team/month 2018 2019 Geophysical Fieldworks unit

2D Offshore Seismic 3,164 km out of 2D Onshore Seismic 517 km 3D Offshore Seismic 10,005 km2 78 03/30 km2 24 exploration48 wells 3D Onshore Seismic 1,141 team/month exploration wells Gravity-Magnetic Offshore 1,089,107 points Gravity-Magnetic Onshore 85,103 points

oil13 discovery

gas 6discovery Turkish Petroleum 2019 Added Reserves

2018

Million14.6 BOE Annual Report 2019 2019

30Million BOE 28 29 2019 contribution to daily our exploration activities production While contribution to daily production was 2,749 barrels in 2018, it was 5,329 New Formation Introduced to Production barrels in 2019. with Recompletion Method

Thrace 2.83Million BOE 1,804BOE/Day 6wells Batman - Hakkâri

1,455BOE/Day

Adıyaman - Diyarbakır

2019 Added Reserves with respect to well type 23.59 3.65 2.83 (Million BOE) Oil Wells Natural Gas Recompleted 1,084BOE/Day Wells Oil Wells in Turkish Petroleum

Oil Wells 79% 6wells with recompletion operations Contribution to Reserves 12% Natural Gas Wells in 2019: The highest contribution to daily production Annual Report 2019 Exploration 986BOE/Day Wells Recompleted according to regions was realised in Thrace with 9% Oil Wells 1,804 BOE/day.

30 31 V

current licences gravity-magnetic and remote sensing The number of exploration and research licence, which was 216 in 2018, reached 355 in 2019.

46,410 km gravity and 2018 216 magnetic data were collected in approximately 40,000 km² from air in 2018-2019 and its 2019 355 process was completed. Area 40,000 km² gravity and magnetic data acquired 46,410 km

oil and gas production with unconventional methods

Drilling activities were realised in Gözalan-1 and Batı Bostanpınar-1/R wells in the South-eastern Anatolia Region and Çeşmekolu-2 well in Thrace Region.

South-eastern Thrace

Anatolia Region Region Van Siirt Hakkâri Eruh Şemdinli Gözalan - 1 Çeşmekolu - 2 Şırnak Mardin Yüksekova Batı Bostanpınar - 1 / R Well Uludere Wells Çukurca Diyarbakır Silopi Beytüşşebap

Adıyaman Batman Annual Report 2019 Turkish Petroleum

32 33 production activities in 2019

We reached the highest production level since 1999 by achieving approximately 11% increase on crude oil in 2019 compared to 2018.

We increased the number of production wells to 46 with an increase of 25% over 2018. 106 BOE/day per well contribution was achieved on average. Domestic Crude Oil Domestic Natural We reached the highest level after 2008 with Production Gas Production approximately 405 million sm³ of natural gas production.

We also concentrated on recompletion operations carried out to increase the production and provided approximately 600 thousand BOE additional production as a result of those operations. Million14.7 Barrels 405Million Sm3

Region-Based Production

Batman 10,623,591 barrels of oil 11,001,357 sm3 natural gas Adıyaman 3,922,217 barrels of oil 421,845 sm3 natural gas Thrace 118,678 barrels of oil 393,250,611 sm3 natural gas Domestic Hydrocarbon Production Turkish Petroleum

Daily Domestic Hydrocarbon Production in 2019 Oil 40,177 bpd Gas 6,751 BOE/d 17.1Million BOE BOE/d Hydrocarbon 46,928 Annual Report 2019

34 35 Health, Safety and Environment TPAO Offshore HSE was established

2019 Offshore activities

For the Offshoreactivites New-Comersto the drillships TPAO Offshore HSE standards were defined Turkish Petroleum

Offshore H2S and Health Service 943 7,007 were started to be provided with domestic resources Occupational Safety Operational Risk Assessment Introduction Training Annual Report 2019

36 37 we develop with innovations We leave innovative traces as a company with a vision which generates its own technology with its energy in order to reach future with confidence. Solution centre for oil and national and natural gas exploration and production domestic technology 132 R&D centre Experts

Establishment1974 146 45-Years of Analytic Devices Experience Accredited36 Analysis R&D38 Projects

Number27 of Laboratories

400+Analysis and Test Methods 6 Scientific17 / Technical Accredited Training Programs Laboratories First R&D Centre with 100% Public Capital Turkish Petroleum

in Turkey Well Control Training Centre in Number of19 Wells Drilled the Standards of

International Well Establishment1997

Control Forum Annual Report 2019 (IWCF) Number212 of Trainees

40 41 R&D centre performance current monitored wells 12in 2018 Planned 2018 2019 New Projects Number of Wells 30 78 Number of Analyses 18,000 36,576

2018 2019 Drilling Fluid Operation (well) 31 36 Cement Design (well) 91 121 in9 2019 Projects Acid Design (well) 22 63 Implemented

2018 2019 Number of Analyses 60,122 74,717

in 2018 Turkish Petroleum External Analysis Amount (TRY) 598,000 942,610 6 Number of Trainees 335 229

in5 2019 Annual Report 2019

42 43 In unconventional projects implemented by TPAO, all the analyses were carried out at R&D Centre laboratories.

The Centre, which develops R&D projects with organisations and institutions, especially with Analyses, tests and designs for the TPAO’s Departments of Exploration, Production and Engineering, continues to transform its operational activities 1,616 person/day fieldworks development-oriented approach into innovative services.

Simultaneous stratigraphic monitoring and reporting for 78 exploration/appraisal wells 36,576 The R&D Centre carried out simultaneous geochemical Analyses monitoring operations of the exploration-appraisal wells drilled by TPAO in 2019.

17 of the 38 R&D projects were completed, and 5 of them were put into practice in 2019. 38 R&D Projects Preparation189 of simultaneous78 cement121 63acid

the well drilling wells monitoring design design Turkish Petroleum The second phase of gas hydrate and bituminous shale projects which programs in exploration- for wells for wells includes field feasibilty studies was launched with TPAO, TKI and University appraisal wells Cooperation.

Mobile laboratory was established and started to carry out simultaneous It has successfully completed the year where it renewed its role in TPAO, geological monitoring in Yavuz and Fatih drill ships in the Mediterranean Sea developed its professional and testing capacities, raised its quality level, within the scope of deep-sea drillings. became more compatible with the corporate needs and objectives. Annual Report 2019

44 45 supply and Nationalisation projects for different types of pump jack logistics reducers were started.

Training on Survival in Sea A protocol was signed with ITU within the scope of the nationalisation project. Nationalisation in 2019

with 32 different nationalisation % projects in 2019 Million TRY was contributed61 to the national economy 37savings Yavuz drillship was A prototype of the valve group which is resistant 5.000 PSI pressure, supported with the first and used in natural gas production, was manufactured within the national containers which scope of Domestic Christmas Tree Project. The majority of the crew of the support ships is Turkish citizens and have an international management of all of the ships are ensured by the Turkish captains. certificate.

Taşucu Shorebase was established in order to provide logistics support to Deep-Sea Drilling Operations carried out by Fatih and Yavuz drillships in the Mass production of wellhead equipment was ensured at international Mediterranean Sea. quality with API certificate, and 90% of wellhead material needs was nationalised. Almost 100,000 materials used in offshore drilling activities were barcoded with the Warehouse Management System developed at Turkish Petroleum Underground Taşucu Shorebase and preserved in accordance with international Production Pumps HSE standarts. Prototype The prototype of the It was successfully tested first national drill bit was in Batman fields, and mass manufactured. All construction tenders were carried out via virtual platform as e-tender. production was initiated. Annual Report 2019

46 47 we move forward continually We go beyond the limits with our dedication and contribute to the energy security with 12 projects in 5 countries. TPAO outside Turkey Afghanistan International Projects Mazar-i Sharif Sandiqli

Azerbaijan 1,234 km 2D seismic data Shah Deniz acquisition was completed. ACG BTC SCP ALOV Countries5 Projects12

Shah Deniz ACG Average daily international Total international Branches were opened in Final investment decision was production in 2019 production in 2019 Azerbaijan and Georgia in taken for ACE (Azeri-Central- order to prevent double Eastern) platform and the taxation in SCP pipeline platform construction was project. started. Thousand84 BOE/Day Million30.8 BOE

Iraq

Badra Turkish Petroleum Missan

Siba

Siba The first oil sale from Siba project within the scope of oil Russia TRNC Annual Report 2019 sale agreement was realised. Baytugan Eastern Mediterranean

50 51 we appreciate efforts We believe in qualified human capacity; we seek the best ones, and we leave traces with our success by producing together. human TP Academy with resources numbers Our corporation maintains its activities with its technological infrastructure and qualified We maintain our training programs in 2019 to enable our employees to contribute to the corporate employees ambitiously. We continue to make investments to our employees in order to progress objectives, to equip with several information and skills to improve themselves personally and with firmer steps to the future in accordance with our vision: existing with “an active, competitive professionally. and dynamic structure” in its region.

Competency Descriptions were Established The Duration (hour) of Original Training for TPAO 300 Content developed with 45 Experts on 54 7 Different Subjects

Employee As of 31.12.2019 Number of Employees Completed Online Number of High School and University Status Number of Employees Occupational Health and Safety Refresher 3,379 Students Performing Internship and Receiving 581 White collar 1,387 Training Skills Training

Blue collar 2,299 Number of Employees Received Survival in Number of Employees Nominated as

nd Total 3,686 Sea Training Program (Bosiet-Foet-H2S) 44 2 Term Candidates within the Scope 10 Future’s Executive Training Project Number of employees participated in Quality Rate of Employees Using TP Academy Online Management and Development Training 648 Training and Development Program 97% Program.

Number of Online Training Appointed to the Number of Executives Participated in Employees on TP Academy 88 Executive Development Programs 253 Educational Background 563Women Number of Employees PhD Degree 34 Cross Career Development Program Competency Management Project Turkish Petroleum Master’s Degree 861 Total Number of Participants Successfully Completed 25 Total Number of Job Descriptions Established 115 Bachelor’s degree 1,063 Total Number of Units Participated 5 Total Number of Competency Descriptions Established 800 Associate Degree 458 Number of Training Completed 141 Job Description and Competency Profile Revision Meeting Duration/hour 64 High school degree and below 1,270 Number of Ongoing Participants 28 Total 3,686 Annual Report 2019

3,123Men

54 55 The financial tables of TPAO and its subsidiaries Partners as of financial December 31st 2019 / Million US Dollars

Liabilities and Equity 2019 The financial tables of TPAO and its subsidiaries Partners as of Short Term Liabilities 585 December 31st 2019 / Million US Dollars Financial Liabilities 408

Trade Payables 43 Assets 2019 Other Liabilities 77 Current Assets 506 Advances Received 50 Liquid Assets 134 Taxes Payable and Other Fiscal Liabilities 4.4 Trade Receivables 91 Provisions for Liabilities and Expenses 1.3 Other Receivables 40 Other Short Term Liabilities 2.1 Inventories 220

Other Current Assets 21 Long Term Liabilities 1,970

Financial Liabilities 1,844

Other Liabilities 15 Fixed Assets 5,230 Other Long Term Liabilities 111 Trade Receivables 0.63

Other Receivables 4,409 Shareholders Equity 3,181 Financial Fixed Assets 0.97 Paid-In Capital 626 Tangible Fixed Assets 794 Profit Reserves 1,340 Intangible Fixed Assets 23 Turkish Petroleum Retained Earnings 1,039 Other Fixed Assets 2.4 Net Profit/Loss for the Period 176

Total Assets 5,737 Total Liabilities and Equity 5,737 Annual Report 2019

56 57 The financial tables of TPAO and its subsidiaries Partners as of December 31st 2019 / Million US Dollars

Gross Sales 1,018

Sales Deductions 89

Net Sales 929

Cost of the Sales 276

Gross Profit (Loss) 653

General Administration Expenses 131

Exploration Expenses 657

Marketing, Selling and Distribution Expenses 22

Operating Profit or Loss -157

Income and Profit from Other Operations 1,141

Expenses and Losses from Other Operations 638

Financing Expenses 127

Ordinary Profit or Loss 219

Extraordinary Revenues and Profits 12

Extraordinary Expenses and Losses 18

Profit (Loss) for the Period 212

Provisions for Taxes Payable and Other Statuary Obligations 28

Net Profit (Loss) of the Period 185

Current Ratio (Working Capital Ratio) 0.87

Acid-Test Ratio 0.49

Financial Leverage Ratio 0.45

Equity/Total Liabilities + Equity 0.55

Equity/Total Liabilities 1.25

Gross Sales Profit / Net Sales 0.70

58 Head Office

Turkish Petroleum Corporation Söğütözü Mahallesi, 2180. Cadde No:10 06530 Çankaya – Ankara / TURKEY Tel : +90 312 207 20 00 Fax : +90 312 286 90 00 +90 312 286 90 01

Regional Offices

Adıyaman Regional Office Batman Regional Office Trakya Regional Office Türkiye Petrolleri Mahallesi, Site Mahallesi 72100 Dere Mahallesi Edirne Bayırı Mevkii Karapınar Caddesi PK: 9 No: 256 Merkez/Batman No:19 P.K. 38 39750, 02040 Adıyaman Tel : +90 488 217 60 00 Lüleburgaz – Kırklareli Tel : +90 416 212 50 00 Faks : +90 488 213 41 49 Tel : +90 288 417 38 90 Fax : +90 416 227 28 18 : +90 488 213 29 14 Faks : +90 288 417 22 03

Overseas Offices

AZERBAIJAN TRNC (TURKISH REPUBLIC OF IRAQ TPAO, TPOC, TPBTC, TPSCP NORTHERN CYPRUS) TURKISH Al Waziriyah, District 301 Azerbaijan Representative Office PETROLEUM OVERSEAS COMPANY LTD. St-5, No-6, Baghdad – IRAQ Port Baku Towers Business Şht. Ecvet Yusuf Cad. No:61 Tel: + 90 312 207 20 00 / 18 58 – 18 59 Centre, South Tower, 12th floor 153, Yenişehir/Lefkoşa-KKTC Neftchilar Avenue, AZ 1010, Baku / Tel: (392) 228 68 00 – (392) 228 28 18 AZERBAIJAN Fax: (392) 228 28 28 Tel : +994 (12) 464 01 50; 464 01 51 E-mail: [email protected] E-mail: [email protected] Please scan the QR code to view the AFGHANISTAN TPAO 2019 Annual Report on your TP Afghanistan Ltd. (TPAL) Mazar-i device. Sharif Branch Office: Baihaqi Street, Burj Ghanzanfar 6th Floor Mazar-i Sharif / AFGHANISTAN

www.tpao.gov.tr /trpetrolleri Mixed Resources This product was produced with supervised forests, controlled resources and recyclable wood and fibres.