Dedicated to 94th anniversary of the National Leader of Haydar

BAKI ALİ NEFT MƏKTƏBİ

SOCAR II INTERNATIONAL CASPIAN AND CENTRAL ASIA DOWNSTREAM FORUM – TRADING, LOGISTICS, REFINING, PETROCHEMICALS Maximising efficiency to meet new challenges , Azerbaijan, 25 - 28 April 2017 SOCAR II INTERNATIONAL CASPIAN AND CENTRAL ASIA DOWNSTREAM FORUM – TRADING, LOGISTICS, REFINING, PETROCHEMICALS

Baku, Azerbaijan, 25 - 28 April 2017

Ddedicated to 94th anniversary of the National Leader of Azerbaijan Haydar Aliyev

In the global commodity bust environment oil and gas exporting countries face new serious challenges. Opti- mising production, processing and logistics, deploying efficient trading practices, deploying more sophisticat- ed processing and petrochemical production processes, identifying new revenue sources at all stages of the supply chain, using logistical channels to the maximum, controlled cost reduction without detriment to quality The State Oil Company of the and efficiency, retaining key personnel and competences Azerbaijan Republic (SOCAR) is – these are some of crisis management steps and pro- involved in exploring oil and gas cesses which the industry may use to meet the current fields, producing, processing, and challenges. transporting oil, gas, and gas condensate, marketing petroleum Some of these measures were implemented in Azerbai- and petrochemical products in jan and within the structure of SOCAR in the previous domestic and international markets, price environment: modern petrochemical production and supplying natural gas to industry clusters were built, logistical channels were developed, and the public in Azerbaijan. SOCAR competent personnel were trained and deployed. SO- comprises three production divisions CAR actively and successfully expanded into opportun- – crude, gas and petrochemical, one istic trading. However, the extent and the depth of the oil refinery and one gas processing commodity crisis and the scale of challenges the global facility, a deep water platform economy faces call for new solutions, a complete rethink fabrication yard, one institute for of strategy and tactics of export, domestic market and training petroleum engineers and transport operations, more improvements and efficien- an operator training centre, 23 cies in refining and petrochemical production. specialised subdivisions covering all Drawing on Azerbaijan’s experience of nursing the in- of the supply and technology chain, dustry back to health in the 90s and laying the foun- from exploration/geophysics to retail. dation for spectacular development in the following decade will be useful in planning and managing the is- sues we currently face. This was the time when the oil Joint ventures (including ventures in and gas industry of Azerbaijan was suffering greatly from Georgia and Turkey), consortia, and the consequences of the break up of the Soviet Union, operating companies established the low price environment, and when the whole of Azer- with SOCAR’s participation, operate baijan was affected by the recent war. The oil and gas throughout the industry supply industry strategy which was developed and deployed by chain. SOCAR has representative the National Leader is an excellent exam- offices and subsidiaries in Georgia, ple of identifying and applying unconventional efficient Turkey, Romania, Austria, Switzerland, solutions in production, transportation and trading of Russia, Kazakhstan, Great Britain, hydrocarbons in a difficult market environment. Iran, Germany, Ukraine, Singapore, Vietnam, Nigeria, and other countries. Now the industry is again in a position when spectacu- lar results need to be achieved from a very low starting point in an adverse environment. SOCAR II INTERNATIONAL CASPIAN AND CENTRAL ASIA DOWNSTREAM FORUM – TRADING, LOGISTICS, REFINING, PETROCHEMICALS

Baku, Azerbaijan, 25 - 28 April 2017

This Forum, commemorating Haydar Aliyev’s 94rd anniversary is intended to be a discussion, brainstorming and a solution development platform to improve technical and commercial efficiency and social commitment of the downstream sector of Azerbaijan and the countries of the Caspian Region and Central Asia: • TRADING • LOGISTICS • REFINING • PETROCHEMICAL INDUSTRY

We will be pleased to welcome in Baku as Forum delegates traders, operations specialists, terminal operators, tanker owners and ship brokers, rail and pipeline operators, refiners and petrochemical industry representatives.

FORUM TOPICS

MARKETS, TRADING, LOGISTICS: Overview of the current oil, gas, refined and petrochemical product market structure and condi- tions in the Caspian region and Central Asia and the related export markets and routes. Overview of intra region and export trade flows and marine, pipeline and rail logistics support- ing these flows Improving efficiency and workload of the existing transport corridors for hydrocarbons and petrochemical products

REFINING: The technological conditions and commercial positioning of the Caspian and Central Asian re- fining Prospects for development of refining facilities in the region Efficient refinery construction and modernisation project management

PETROCHEMICALS: Petrochemical facilities in the Caspian region and Central Asia – technical overview Supply and demand analysis for petrochemical products in the region and its export potential SOCAR’s experience in deploying complex petrochemical production facilities.

THE FORUM IS INTENDED FOR: Senior, commercial and technical management of vertically integrated oil and gas companies

Traders and logistics support specialists of vertically integrated and trading companies

Terminal, tanker, rail tank car, pipeline operators, crude and product freight forwarders

Refinery and petrochemical engineers

Refining and petrochemical process and technology licensors, equipment suppliers

Trade and project finance banks

Industry analysts, pricing agencies SOCAR II INTERNATIONAL CASPIAN AND CENTRAL ASIA DOWNSTREAM FORUM – TRADING, LOGISTICS, REFINING, PETROCHEMICALS BAKI ALİ NEFT MƏKTƏBİ

Baku, Azerbaijan, 25 - 28 April 2017 AMONG THE SPEAKERS OF THE PREVIOUS FORUM:

Doctor of Economic Academician Elmar Gasimov, Mukhtar Babayev, Sciences, Khoshbakht Yusifzade, PhD (Geography), Chairman Natig Aliyev, First Vice-President, Geology, of Supervisory Board, Rector, SOCAR Minister of Energy Geophysics Azerikimiya Production Baku Higher Oil School of Azerbaijan Republic and Field Development, SOCAR Union (SOCAR)

Farid Jafarov, Bakhtiyar Aslanbeili, Zamig Ismayilov, Deputy Captain Sakhit Director of SOCAR Polymer Vice-President Chairman of the Board Istikbal, of BP Azerbaijan of Azerbaijan Caspian Shipping Director of Sea News Company Turkey

Niccolò Heilpern Nick Coleman Alexander Yershov, Denis Varaksin, Head of Branch Office in Senior Editor, Oil News, S&P Chief Editor, DYM Resources Azerbaijan at KT - Kinetics Global Platts Thomson Reuters trader Technology S.p.A. Ukraine Kazakhstan Russia

Uzbekistan Georgia Kyrgyzstan Azerbaijan Turkmenistan Baku Tajikistan SOCAR II INTERNATIONAL CASPIAN AND CENTRAL ASIA DOWNSTREAM Iran Afghanistan FORUM – TRADING, LOGISTICS, REFINING, PETROCHEMICALS

Baku, Azerbaijan, 25 - 28 April 2017 DRAFT PROGRAMME: 25 April, Tuesday Session 1. THE OPENING CEREMONY AND THE PLENARY SESSION. MACROECONOMIC OVERVIEW GLOBAL ENERGY MARKET OVERVIEW. CASPIAN AND CENTRAL ASIA AS ONE OF THE KEY ELEMENTS OF THE GLOBAL OIL AND GAS MARKETS. AZERBAIJAN’S OIL AND GAS INDUSTRY IN THE GLOBAL CONTEXT. THE REGIONAL CASPIAN AND CENTRAL ASIA OIL AND GAS ECONOMICS. LOCAL DEMAND AND THE KEY EXPORT MARKETS

FOCUS SESSION:  SOCAR AS THE REGIONAL LEADER IN THE INTERNATIONAL HYDROCARBONS TRADING. The success of SOCAR in developing a successful trading division SOCAR in the CIS – challenges and success SOCAR Trading in the global context Session 2. THE CASPIAN AND CENTRAL ASIAN GAS MARKET. KEY EXISTING AND PROSPECTIVE CUSTOMERS FOR THE CASPIAN AND CENTRAL ASIAN GAS. . Session 3. REGIONAL PIPELINE PROJECTS – EXISTING, DEVELOPING AND CONCEPTUAL. PROVIDING ADEQUATE RESOURCES FOR THE BTC. TANAP – POTENTIAL FOR IMPLEMENTATION, RESOURCES AND THE ROLE OF TANAP IN EUROPEAN SECURITY OF SUPPLY. GALA DINNER FOR SOCAR GUESTS AND THE FORUM DELEGATES

26 April, Wednesday

Session 4. KEY GLOBAL TRADE FLOWS AND ROUTES. THE REGIONAL CRUDE, PRODUCT AND GAS TRADING LOGISTICS. TRANSCASPIAN LOGISTICS. KAZAKHSTAN (AKTAU, RAIL) – BAKU – GEORGIAN PORTS CORRIDOR. Session 5. PRICING AND TRADING SPECIFICSN AND CENTRAL ASIA – ECONOMICS AND TECHNOLOGIES Session 6. EVOLUTION OF REFINING IN THE CASPIAN REGION AND CENTRAL ASIA. COMMERCIAL ASPECTS Demand trends Quality control and regional retail specifics SOCAR II INTERNATIONAL CASPIAN AND CENTRAL ASIA DOWNSTREAM FORUM – TRADING, LOGISTICS, REFINING, PETROCHEMICALS Baku, Azerbaijan, 25 - 28 April 2017 DRAFT PROGRAMME: 27 April, Thursday

CONFERENCE REFINING IN THE CASPIAN REGION AND CENTRAL ASIA – ECONOMICS AND TECHNOLOGIES Session 1. OVERVIEW OF REFINING AND PETROCHEMICAL INDUSTRY IN THE CASPIAN REGION AND CENTRAL ASIA REFINING Global refining trends – pricing, technologies, development prospects The future of refining in Azerbaijan: volumes and export markets Refining capacity sufficiency in the Caspian region and Central Asia regions – identifying the balance point Quality control and regional retail specifics PETROCHEMICALS Demand projections and export potential for key product categories PE PET Polypropylenes Artificial fibre Ammonia Fertilisers Gas based chemical industry. The current state and development prospects for gas processing and gas-fed chemical industry in Kazakhstan and Uzbekistan. SOCAR and АZERIKIMYA experience in developing modern petrochemical production and petrochemical based industrial clusters in Azerbaijan, managing a large scale international petrochemical group – Azerikimya/Petkim

Session 2. INNOVATIVE TECHNOLOGIES AND PRODUCTION EFFICIENCY REFINING Configuration of the key refineries in the Caspian and Central Asia. Managing complex refinery and petrochemical modernisation and construction projects Financing local refinery modernisation and construction projects PETROCHEMICALS Overview of the cutting edge technologies for petrochemical industry – economics as a driver for modernisation Managing modernisation and new construction projects in petrochemical industry Petrochemical facility optimisation – energy consumption and technology improvement Developing petrochemical facilities in deflationary or static market conditions – financial aspects

28 April, Friday TECHNICAL VISIT PROGRAMME SOCAR Oil Terminal Heydar Aliyev Refinery Sumgait Petrochemical Complex

*DISCLAIMER: This document is a draft overview of the themes to be covered at the Event. Its publication is intended solely for the purpose of presenting the Organisers’ view on the proposed programme structure. The Organisers do not make any statements about and does not guarantee participation of any of the above-mentioned organisations or coverage of the topics listed above. The Organisers welcome constructive suggestions and recommendations from any interested industry organisations and individuals. Drafts of the programme containing times and topics will be made available to interested parties as they are developed. The final programme will be issued to participants and accredited media representatives upon registration.