Issue 17 - Q2 / 2018 RHI Newsletter WE BUILD TRUST 1. AWARD NEWS • Renaissance Heavy Industries (RHI) to build AMURSKY Gas Processing Plant (AGPP) for Page 5 • RHI performs CDU complex construction RHI President Alptekin Page 5 at the Neft Omsk Refinery Page 5 • RHI to build Crude Oil Gathering and Tizer Visits The BOTAŞ Chairman of SIBUR’s Northern Marmara UGS GTG: Dr. Erman Ilıcak says Board of Directors visited Processing Facilities Project in Algeria Project, Turkey we will fulfill our obligations ZapSib-2 ECU Project 2. COMPLETED PROJECT • RHI acquires certificates of completion for TACE Ethane Cracker and PE/PP Plant in Turkmenistan 3. EVENTS • Rönesans Holding enters into four Page 3 agreements at the St. Petersburg RHI acquires certificates International Economic Forum (SPIEF) of completion for TACE • New horizons for Karchaganak Ethane Cracker and PE/PP Expansion Project: Breakfast at Plant, Turkmenistan KazService in 4. NEWS FROM SITES • RHI President Alptekin Tizer visits the BOTAŞ Northern Marmara UGS Project • GTG: Dr. Erman Ilıcak says we will fulfill our obligations • Chairman of SIBUR’s Board of Directors visited ZapSib-2 ECU Project Page 3 Page 2 • Yamal LNG Project: Achieved a 98% RHI to build Crude Oil progression RHI has signed subcontract agreement with Tecnimont Gathering and Processing LLC, amounting to over € 1.3 Billion Facilities Project, Algeria 5. GEOGRAPHICAL EXPANSION • Rotterdam/Netherlands - BNI’s CEO, Ronaldo Franken: ‘without RHI’s support, this successful growth would not have been possible’ 6. QHSE - NO COMPROMISE • RHI got aworded Safety Flag at Page 4 TouatGaz Main Process Plant in Algeria New horizons for Karchaganak Expansion 7. SOCIAL LIFE Project: Breakfast at • Renaissance Heavy Industries, KazService, Kazakhstan established on 1 April 2011, is seven years old 8. RÖNESANS HOLDING NEWS • Ballast Nedam, the company of Rönesans Holding, and TAV were awarded the Schiphol Airport additional terminal contract

Page 2 Page 7 9. ADVERTISING • Special opportunity for RHI partners: RHI performs CDU complex construction at the RHI, established on 1 April NEVATOWERS, Moscow/Russia Omsk Refinery, Russia 2011, is seven years old RHI NEWSLETTER Issue 17 - Q2 / 2018

Award News RHI SIGNS SUBCONTRACT AGREEMENT WITH TECNIMONT RUSSIA LLC On 25th May 2018 the AGPP construction subcontract agreement was signed between RHI and Tecnimont Russia LLC, amounting to over €1.3 billion. The scope of works covers civil, structural, piping, mechanical, electrical, instrumentation and pre-commissioning activities, including the major part of the construction works of Package 3. The agreement was signed at the St. Petersburg International Economic Forum (SPIEF, 2018) by Erman Ilicak, Rönesans Holding President, and Pierroberto Folgiero, CEO of Maire Tecnimont Group. Also in attendance were: Alexey Miller, CEO of Gazprom Group; Fabrizio Di Amato, Chairman of Maire Tecnimont; and Pasquale Terracciano, Italian Ambassador to Russia, along with other Russian and Italian officials. AGPP will become Gazprom’s biggest gas processing plant, and one of the largest of its kind in the world. The planned production is of 42 billion cubic meters of natural gas per year. The GPP will produce ethane, propane, butane, and pentane-hexane fractions along with natural gas. The plant will become an essential part of the processing chain in future Dr. Erman Ilıcak-Rönesans Holding President, Pierroberto Folgiero-CEO of supplies of natural gas via “The ” gas pipeline Maire Tecnimont Group to China. RHI PERFORMS CDU COMPLEX CONSTRUCTION AT THE NEFT OMSK REFINERY RHI and Gazprom Avtomatizatsiya PJSC have entered into an agreement for the construction of CDU (a crude oil distillation unit) complex facilities, which are being built throughout the second stage of the Neft Omsk Refinery’s large-scale modernization programme. Under the agreement, RHI will perform installation and construction works and supply some of the materials for the facility. The works listed in the agreement are planned to be completed by the end of 2019.

The mobilization of a modular camp has been completed by RHI at the construction site. The foundation and pre-erection works of the large-scale equipment are being performed. At the peak activity period, there will be 1,600 construction workers on site. The CDU complex is set to become one of the most significant crude oil refining facilities in Russia, with the capacity to process 8.4 million tonnes of oil and 1.2 million tonnes of gas condensate per year. DETAILS The Gazprom Neft Omsk Refinery, a subsidiary of Gazprom Neft, is one of The new CDU complex will comprise six sections, including a the most advanced refining facilities in Russia, as well as is one of the most separate gas condensate processing unit, allowing an increase significant in terms of total refining volumes. With a total installed capacity in the volume of gas condensate processed, plus additional of 21.4 million tonnes (including one million tonnes of gas condensate), the volumes of condensate in the production of Euro-5 gasoline, Omsk Refinery is one of the top twenty largest refineries in the world. diesel fuel and aviation fuels. The main technological processes used at the Omsk refinery are deionisation and dehydration of oil, crude oil distillation, catalytic cracking, sulphuric acid alkylation, catalytic reforming, isomerization and the hydro-treatment of gasoline and diesel fuels, and the production of aromatic hydrocarbons.

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Award News RHI TO BUILD CRUDE OIL GATHERING AND PROCESSING FACILITIES PROJECT IN ALGERIA

RHI has signed a contract with JGC (JGC Algeria) for the construction of crude oil gathering and processing facilities owned by Sonatrach, the Algerian state-owned oil and gas company. Sonatrach is seeking to develop new oil sources in the north of the Hassi Messaoud district. RHI will be responsible for the construction of gathering facilities for crude oil produced from new producing wells in the area, and also a crude oil processing facility which will separate oil, gas and water, with a capacity of 40,000 bbl/day. The facilities are expected to be completed in 40 months.

Completed Project RHI ACQUIRES CERTIFICATES OF COMPLETION FOR TACE ETHANE CRACKER AND PE/PP PLANT IN TURKMENISTAN

In May 2018, RHI acquired certificates of completion from EPC contractor Hyundai Engineering Company (HEC), which was carrying out EPC works jointly with Toyo Engineering at the Kiyanly Petrochemical Complex in Turkmenistan.

RHI signed a contract with HEC for the construction of the following units of the TACE Ethane Cracker and PE/PP Plant: • Gas Separation Unit (GSU): 5 BCMA gas feed; • Ethane Cracker Unit (ECU): 685 kTA ethane; • High Density Polyethylene Unit (HDPE): 386 kTA; • Onshore and Offshore Works of Sea Water Intake Facility. RHI performed civil works, steel structure erection, piping and equipment erection of the units in time.

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Events RÖNESANS HOLDİNG ENTERS INTO FOUR AGREEMENTS AT THE ST. PETERSBURG INTERNATIONAL ECONOMIC FORUM (SPIEF)

Rönesans Holding has drawn attention with the four agreements signed at the St. Petersburg International Economic Forum (SPIEF), which was organized for the 22nd time this year and is also more informally known as the Davos of Russia. The forum, attended by the Russian President , the French President Emmanuel Macron, the Japanese Prime Minister Shinzo Abe and the IMF President Christine Lagarde, hosted many senior managers from more than 100 countries. Dr. Erman Ilıcak-Rönesans Holding President, Pierroberto Folgiero-CEO of Maire Tecnimont Group Rönesans left its mark on the forum by concluding agreements for the Amur Gas Processing Plant, and with Sberbank, Moscow terms of investment. With this agreement with the Moscow Regional Administration, and St. Petersburg tramway. Regional Administration, cooperation can be built with a view to attracting extra budgetary investments for the performance Rönesans Holding signed a letter of intent to determine the of health services projects and for the construction of offices steps to be taken for the construction and use of the Yuniy and hotel complexes. transfer station of St. Petersburg, and the Yujnaya subway station and Kolpino tramline project. The project, which is At the Forum, an important agreement was also signed with planned to have a total investment of 20 billion rubles (approx. Sberbank. Rönesans Group, within the framework of this USD 325 million), is planned to start in 2019 and to be agreement, will have the opportunity to benefit from the completed in 2023. experience and know-how of Sberbank’s Corporate University in terms of investment banking and financing activities, and Rönesans İnşaat, the sister company of RHI, also signed an within the framework of strategic business associations and agreement with Moscow Regional Administration. The Moscow different programs. region is one of the foremost regions of Russia with its potential for high economic and social development. As From RHI, President Alptekin Tizer, Sr. Vice-President Rönesans Group Companies, we are not just a construction Mustafa K. Ozakay, Vice-President, BD Ahmed Abdullayev, and company; we also have important experience in the region in Vice-President Russia Fevzi Baskan all attended. NEW HORIZONS FOR KARCHAGANAK EXPANSION PROJECT: BREAKFAST AT KAZSERVICE IN KAZAKHSTAN June 26, Kazakhstan – RHI’s Vice-President and Executive Board Member Ahmed Abdullayev, took part in a meeting “without ties”, of a type held regularly by Kazservice (the union of oilfield service companies of Kazakhstan). Foreign and Kazakh contractors were invited to the meeting to discuss the situation in the domestic oilfield services industry; namely, the search for opportunities in the Karachaganak Expansion Project. The meeting is significant in that it was attended by assigned high-level management of Karachaganak Petroleum Operating (KPO) company. In March, at the Kazneftegazservice 2018 conference, KPO announced that in order to develop local content, it would introduce lists of equipment and scopes of work for which the general contractor should hold tenders among local companies only. RHI is interested in participation in petrochemical and metallurgical projects in Kazakhstan. At the moment, the company is implementing a project for KazZinc company for the construction of Zhayremsky GOK the beneficiation plant.

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News From Sites

GTG: DR. ERMAN ILICAK SAYS WE WILL FULFILL OUR OBLIGATIONS Turkmenistan President Gurbanguly Berdimuhamedov RHI PRESIDENT ALPTEKİN TİZER received Dr. Erman Ilıcak during his visit to the country. VISITS THE BOTAŞ NORTHERN Dr. Erman Ilıcak, who presented his birthday wishes to the Turkmen leader, stated that all his commitments MARMARA UGS PROJECT given earlier would be fulfilled. In particular, he said of the In June 2018, RHI President Alptekin Tizer and Vice Gas-to-Gasoline (GTG) project that all the works under President Mustafa Karakuş visited the construction site the agreement would be completed without sacrificing of the Botaş Northern Marmara Underground Gas Storage high quality. This is a high-technology, environmentally (UGS) Project, located in Silivri, and inspected the current friendly project with an annual production capacity of construction of site offices, camp buildings, and related 600,000 tons. Construction will be completed within this mobilizations. year. The office and staff dorm, recreation buildings, dining RHI, which left its “signature” on the world’s largest plant halls, infirmary, ISG training hall, laundry rooms, the first producing gasoline from gas, is preparing to complete the workers’ dorm, LNG boiler house, water tanks, and the plant being realized in a consortium with Kawasaki Heavy cesspool system works started in April 2018 have all been Industries Ltd. completed. The precommissioning process, which has reached 45% Construction continues of the pipe spool manufacturing progress, continues successfully. So far, the plant air, water workshop, dyehouse, warehouses, stock areas, precast and treatment, raw water treatment, fire water system and iron processing areas, and the repair area. water intake units have been commissioned, and the commissioning processes of these units are continuing. In the project, both onshore and offshore design work will As of June 2018, commissioning has started on the boiler be performed by the RHI design office. units of 80 ton/hour and 160 ton/hour capacity.

CHAIRMAN OF SIBUR’S BOARD OF DIRECTORS VISITED ZAPSIB-2 ECU PROJECT On June 23, 2018, Leonid Mikhelson, Chairman of SIBUR’s Board of Directors and Co-Owner of Russian gas producer Novatek, visited the ZapSib-2 EP-1500 Ethylene Cracker Unit site in Tobolsk, Rusisa. He met with Mr. Alptekin Tizer, President of Renaisance Heavy Industries and other Management Team of Renaissance Heavy Industries Russia and they were Roman Kutsenko-Project Manager, Mustafa K. Ozakay- updated on the current status of the construction. CEO & Vice President-Russia, Dmitiy Ham-Project Director, Leonid Viktorovich Mikhelson-Chairman of Sibur and Co-owner of Novatek, Being our 3th work with SIBUR, the plant construction is Erdem Eryildirim-COO-Russia, Alptekin Tizer-President, Hakan Malta-CEO planned to be completed in 2019.

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News From Sites YAMAL LNG PROJECT: ACHIVED A 98% PROGRESSION IN GENERAL The Yamal LNG Project, undertaken by RHI’s joint venture, REGA JV, has achieved 98% general progress. The first stage of the project has been completed and the first liquefied natural gas production (“First LNG Drop”) started on 6 November 2017. The site is located in the Arctic Circle, and on December 8, 2017, with the participation of the President of the Russian Federation, Mr. Vladimir Putin, and representatives of the sponsoring countries, the first product started to be carried to distribution points with “the world’s first ice-cracking LNG tanker”.

Geographical Expansion QHSE-No Compromise Rotterdam/Netherlands RHI GOT AWARDED SAFETY FLAG AT ‘WITHOUT RHI’S SUPPORT, THIS TOUATGAZ MAIN PROCESS PLANT SUCCESSFUL GROWTH WOULD NOT IN ALGERIA Tecnicas Reunidas (TR), the main contractor of the TouatGaz HAVE BEEN POSSIBLE’ Main Process Plant project in Adrar (Algeria), evaluates the In May 2018, Dr Erman Ilıcak paid a visit to the new office of project site labor safety every month, selects the most Ballast Nedam Industriebouw (BNI) in Rotterdam, which was successful subcontractor, and rewards them with TR’s opened in 2017. BNI continues its activities in the Netherlands SAFETY FLAG. and Belgium. The results are calculated according to the following criteria: Dr Erman Ilıcak, having liked the building where the office is • Risk Assessment, located, its location, and the interior decoration which has the • Inspections, common traits of BNI and RHI, also went to the manufacturing • ToolBox Talk TBT, workshop established beside the office, and after his • Housekeeping, examination, stated that he was very proud. • Supervision, • Motivation, Dr Ilıcak described his wishes for these two companies to sign • Traning, for new works together in the future. • Documentation. The transformation of BNI into a contracting company that In June, this valuable prize became RHI’s. quadrupled its turnover within four years and made civil packages in industrial projects (all contracting services includ- ing civil, mechanical and electrical) was the main topic of the meeting with the BNI management. BNI’s CEO, Ronaldo Franken, mentioned that without RHI’s support, it would not have been possible for this successful growth to happen.

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Social Life RENAISSANCE HEAVY INDUSTRIES, ESTABLISHED ON 1 APRIL 2011, IS SEVEN YEARS OLD

The employees at RHI Head Office gathered at lunch at a restaurant and celebrated the seventh anniversary at the company. RHI President Alptekin Tizer and General Manager N. Celal Toroğlu announced in their speeches that we had been awarded the Gazprom Amursky Gas Processing Plant Project in addition to the Botaş Northern Marmara Natural Gas Storage Expansion Project. They also thanked all employees for their dedication in this process.

Rönesans Holding News BALLAST NEDAM, THE COMPANY OF RÖNESANS HOLDING, AND TAV WERE AWARDED THE SCHIPHOL AIRPORT ADDITIONAL TERMINAL CONTRACT Ballast Nedam, the subsidiary of Rönesans Holding, and TAV, Biomaterials, insulated glass and recycled plastic and untreated have been awarded the Schiphol Airport additional terminal marble stones are to be used in the construction of the contract. additional terminal building at Schiphol. The building will also have a 5,000 m2 solar panel, and rainwater will be used for Ballast Nedam and TAV won the Royal Schiphol Group’s tender cleaning purposes. The new terminal building will bear for an additional terminal building at Amsterdam Schiphol all the features a terminal should have, such as security Airport. The Royal Schiphol Group has, within the framework of checkpoints, border control, stores, and food and drink areas. the tender, awarded the joint venture the construction of both In the three-storey building, passengers subject to different landing sites and airplane parking spaces. To the north of the border and safety rules will be kept separate from each other. new landing sites, with an area of 55,000 m2 to be constructed As a result, the new terminal building can be used for as part of the expansion works, there will be five gates for passengers going to and coming from Schengen countries, narrow-body aircraft and three gates for wide-body aircraft. passengers traveling intercontinental, and passengers from Later on, two more wide-body doors will be added to the south countries that do not comply with the relevant European side. legislation on safety scanning.

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“Renaissance” is the registered brand name of Rönesans Holding. “Renaissance Heavy Industries” and “RHI” are registered brand names of Rönesans Endüstri Tesisleri İnşaat San. ve Tic. A.Ş. 8