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B O T A Ş PETROLEUM PIPELINE CORP.

ARZU GUNEL EXPERT ON FIN.ANALYSIS AND ECO.EVALUATIONS BOTAŞ

1 Ver 09.03 www.botas.gov.tr NG/LNG SALE AND PURCHASE CONTRACTS

EXISTING CONTRACTS VOLUME DATE OF DURATION DATE OF (BCMA ) SIGNATURE (YEAR ) OPERATION RUSSIAN FED. (WEST) 6 FEB, 1986 25 JUNE 1987

ALGERIA (LNG) 4 APRIL, 1988 20 AUG 1994 NIGERIA(LNG) 1,2 NOV, 1995 22 NOV 1999

IRAN 10 AUG, 1996 25 DEC 2001

RUSSIAN FED. () 16 DEC, 1997 25 FEB 2003 G 8 FEB, 1998 23 MARCH 1998 RUSSIAN FED. (WEST) TURUS TURKMENISTAN 16 MAY, 1999 30 -

AZERBAIJAN 6,6 MARCH, 2001 15 2006 SECTORIAL BREAKDOWN OF NATURAL GAS SALES BY YEARS (MILLION Cm3 )

NATURAL GAS SALES BY SECTORS

Electricity

Fertilizer

Residential

Industry

1987 1988 1989 1990 1995 2000 2004 SECTORIAL NATURAL GAS CONSUMPTION

RESIDENTIAL %20

2004 INDUSTRY EL ECT R. %18 % 60

FERTILIZER % 2 SECTORIAL DEMAND

20.000 15.000 10.000 RES. 5.000 IND. 0 MILLIONCUM ELECTR. 9 13 FERT. 2015 2017 201 2005 2007 2009 2011 20 YEARS

( MILLION CM3) MAJOR BOTAŞ GAS ACTIVITIES IN THE COMING YEARS 1 4 Russian Fed (West 6 BCM+ Turusgaz 8 BCM) B C A I M GEORGIA R BLACK SEA Russian Fed (Blue Stream) A M G C L B U CS-1 6 Kofçaz . M B Kırklareli 6 C B 6 E Zonguldak 16 1 C Edirne CS-2 Bartın M E 24” Ereğli C E 36” Çaycuma B Ardahan R Ordu A G CS-3İzmit 16” 48” Artvin TurkmenistanR M.Ereğlisi 30” Çankırı Rize Kars M 18” Bolu E CS-4 24” Sakarya Amasya N Çan 24” 24” 36” Çorum Gümüşhane 48” IA Bilecik 24” Çanakkale 16” Karacabey CS-5 40” Ankara 48” Bayburt 24” Yozgat 48” Iğdır 20” Kırıkkale Horasan Yapracık Erzincan Balıkesir Kütahya Eskişehir Ağrı Doğubayazıt 48” M 1 C Aliağa 24” 16” 40” Kırşehir 0 B 24” 48” Afyon I B 2 Uşak R C . 40” Kayseri Van M 5 Elazığ A İzmir Turgutlu 40’’ N Nevşehir Malatya Batman Aydın 40” 40” Konya Aksaray Niğde Diyarbakır 40” Adıyaman Şırnak Iran Isparta Kahramanmaraş 16” Ereğli Araban Silopi Burdur Seydişehir Bozova Muğla Adana 40” Karaman 40’ Şanlıurfa 1 DörtyolGaziantep 0 IRAQ Antalya ’ Ceyhan Mersin B İskenderun C M Hatay M C Existing Lines B Iraq 4 Under Construction LNG (Algeria + Nigeria) LNG (Algeria SYRIA MEDITERRANEAN Egypt Tendered Lines Existing Imports (Plateau Period) Planned Lines CS N NO Contracted Gas Volumes ON Ereglisi LNG Terminal NA A B B Planned Underground Storages Planned Gas Volumes E E L L “MAJOR NATURAL GAS DISTRIBUTION ACTIVITIES”

CURRENT DISTR.COMPANIES → 6 ( 2 OF THEM BELONGED TO BOTAS, PRIVATIZED IN 2002) SINCE THEN, BOTAS HAS BECOME WHOLESALE TRADER

BOTAS FIRST CONSTRUCTS DIRECT DISTR.LINES FROM TRANSMISSION LINES TO THE INDUSTRIAL ZONES, THOSE WILL BE TRANSFERED TO THE DISTR. COMPANIES AFTER THE COMPLETION OF THEIR FOUNDATIONS AND BE IN OPERATION.

DISTR. IN 2004 → 5 NEW DISTR. ZONES

DISTR. PLANNED IN 2005 → 16 NEW DISTR. ZONES

NATURAL GAS TRANSMISSION LINES PLANNED TO BE IN OPERATION IN THE LATE 2005 → IND. CUSTOMERS OF SOUTH AND SOUTHWEST LINES

NATURAL GAS TRANSMISSION LINES PLANNED TO BE IN OPERATION IN 2006 → RESIDENTIAL CUSTOMERS OF SOUTH AND SOUTHWEST LINES (AFTER TECHNICAL SUFFICIENCY, APPROVALS FROM EMRA AND DISTR.LICENSE) AND BLACK SEA LINE “TENDERS FOR THE TRANSFER OF NATURAL GAS SALES AND PURCHASE CONTRACTS (IMPORT CONTRACTS)"

NG CONSUMPTION IN 2005 → 25 BCM

TENDERED VOLUME → 16 BCM (16 LOT)

SHARE OF TENDER VOLUME IN THE MARKET → 64%

APPLY FOR THIS TENDER → ONLY IMPORT LICENSE OWNER (APPROVED FROM THE EMRA) CAN APPLY

THE FINAL DATE FOR APPLY→ 20 JAN.2005 Gas to Europe - Greece

UKRAINE KAZAKHSTAN MOLDOVA RUSSIAN FEDERATION C A S BULGARIA BLACKSEA P GEORGIA I A UZBEKISTAN N

ARMENIA AZERBAIJAN GREECE TURKMENISTAN N

A

T

S I

N SYRIA A H G G A MEDITERRANEAN IRAN F S A TO EU IRAQ ROP E V IAEGYPT GRE ECE 9 Botaş, Depa, Edison Gas 9 11 bcm to Greece and (first calculations) 9 Start with late 2006 for Greece to reach plateau capacity in 2012