June 2009

Burgas – AlexandroupolisPipeline

Christos DimasManager of TBP GreeceTechnical Coordinator of TBP-BV – The NetherlandsGeneral Manager of HELPE-THRAKI A.E. (Greek Participant)

IENE3rd Energy Dialogue

Thessalonica18-19 June 2009

June 2009

Russian and Caspian Main Oil Fields

Taishet

Dqing

Baku-

LegendMajor Oil basins

Barents Sea

Timan Pechora

East Siberia

West Siberia

Caucasus & Caspian

Volga Urals

Sakhalin

Tengiz

2

June 2009Russian and Caspian Crude Oil Production(Million Metric Tons)

3

June 2009Russian and Caspian Crude Oil Exports(Million Metric Tons)

4

June 2009

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

5

June 2009

OIL CONCENTRATION IN THE BLACK SEAAND THE BOSPORUS STRAITS

6

June 2009Black Sea

Crude Oil Export Alternatives Bypassing the Straits

A. Odessa – Brody – Baltic Sea

B. Constantza – Trieste

C. Burgas – Flore

D. Burgas – Alexandroupolis

E. Kiykoy – Ibrice

F. Samsun - Cheyhan

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 pipeline

planned pipeline

Tanker transport

Vlore

Aktau

Kashagan

Karatschaganak

Makhachkala

Tehran

Tikhoretsk

Batumi

CPC Pip

eline

OVERVIEW MAPCRUDE CRUDE OILOIL EXPORTEXPORTCHAINSCHAINS

Atyrau

Neka Port

Tuapse

A. C. G.Mega Structure

Oil Field

Augusta

Trieste

Omishali

Brody

Feneshlitkye

Odessa

Ceyhan

Baku

Tengiz

Samara

Tscheljabinsk

from Surgut

Sisak

Plotsk

Gdansk

Vlore

TO CHIN

A

Makhachkala

Tehran

Samsun

Atyrau

Neka Port

Tuapse

Balti

c S

ea

Alexandroupolis

B

C

D EF

A

Kashagan

Kurmangazy

Supsa

Primorsk

Tikhoretsk

Novorossiysk

VentspilsButing

Constanta

Unecha

Aktau

Mega StructureA. C. G.

TO

CH

INA/J

APAN

TH

RO

UG

H S

IBER

IA

Black Sea

ToUSA and

North Europe

Kiykoy

Ibrice

Burgas

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 pipeline

planned pipeline

Tanker transport

Vlore

Aktau

Kashagan

Karatschaganak

Makhachkala

Tehran

Tikhoretsk

Batumi

CPC Pip

eline

OVERVIEW MAPCRUDE CRUDE OILOIL EXPORTEXPORTCHAINSCHAINS

Atyrau

Neka Port

Tuapse

A. C. G.Mega Structure

Oil Field

Augusta

Trieste

Omishali

Brody

Feneshlitkye

Odessa

Ceyhan

Baku

Tengiz

Samara

Tscheljabinsk

from Surgut

Sisak

Plotsk

Gdansk

Vlore

TO CHIN

A

Makhachkala

Tehran

Samsun

Atyrau

Neka Port

Tuapse

Balti

c S

ea

Alexandroupolis

B

C

D EF

A

Kashagan

Kurmangazy

Supsa

Primorsk

Tikhoretsk

Novorossiysk

VentspilsButing

Constanta

Unecha

Aktau

Mega StructureA. C. G.

TO

CH

INA/J

APAN

TH

RO

UG

H S

IBER

IA

Black Sea

ToUSA and

North Europe

Kiykoy

Ibrice

Burgas

7

June 2009Flows of Eurasian Crude Oil Through the Bosporus(Million Metric Tons)

8

June 2009

9

BURGAS – ALEXANDROUPOLIS PIPELINE

June 2009

10

June 2009PROJECT BACKGROUND

1993-1994 Athens • 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.

Jan. 2002 Project Studies

• Extensive studies completed by ILF Consulting Engineers.

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 “Trans-Balkan Pipeline B.V.” in Netherlands.

Oct. 2008 • Project Studies Update awarded to ILF. Completion expected by October 2009.

11

June 2009PRELIMINARY PROJECT CHARACTERISTICS FOR A CAPACITY OF 35 ÷ 50 MTA

Alexandroupolis Tank Farm and Marine Facilities

Pipeline

BurgasTank Farm and Marine Facilities

• Main Pipeline Length: 280 km• Overall Pipeline Length: 320 km• Pipeline Diameter: 42“• Capacity 35÷50 Mta

• Tank Farm Capacity: 480 ÷ 640.000 m3• Marine Facilities: 2 SPMs for 150.000 dwt

Tankers each

• Tank Farm Capacity: 900 ÷ 1.200.000 m3• Marine Facilities: 2 SPMs for 300.000 dwt

Tankers each

12

June 2009SOME MAJOR CONSULTANTS OF TBP

Allen & Overy LLP , Law Firm Société Générale, Corporate & Investment BankingKPMG, Audit AdvisorDeloitte & Touche (DT), Tax ConsultantILF Consulting EngineersEnvironmental Resources Management (ERM)Cambridge Energy Research Associates(CERA)

13

June 2009

14

Activities and Progress

June 2009

Location Selection – Burgas

Location Selection – Alexandroupolis

Route Selection

Environmental Studies and Management

Legal Issues - Authority Engineering

Survey and Engineering Works

Overall Time Schedule

Procurement Strategy

Public Consultation Procedures

HGA Issues

Land Acquisition Issues

CURRENT ACTIVITIES

15

June 2009

16

Thorough investigations have been carried out for various

alternatives

Consultations with authorities, communities and NGOs during

November 2008 and January, March, April, May and June 2009

Pre-selection done, detailed selection in progress

Status Report Engineering Services Location Selection

June 2009

17

Throughout planning, development and implementation of the project, TBP is committed to:

protecting the environment;

respecting local communities and cultural heritage;

safeguarding public health and occupational health and safety;

employing best available technologies;

applying highest safety standards to minimise any risks;

applying international best practice Environmental and Social

performance Standards to develop the Project, and

working in a constructive and continuous dialogue with the population in

the project area , PCDP ( Public Consultation and Disclosure Plan), NGOs

and the relevant authorities and other stakeholders.

TBP’s Values and Principles

June 2009

Legislation and Standards about the Environment

For the BAP Project Environmental and Social studies and assessments will be undertaken which will be guided by the requirements of:

Bulgarian and Greek national legislation;

EU Directives (including the Habitats Directive, the EIA Directive and the IPCC

Directive, the Birds Directive, Water Framework

Directive and the Marine Strategy Framework Directive);

International Conventions (including the Black Sea and MARPOL

Conventions); and

International Standards such as the Performance Standards of the

International Finance Corporation‘s (IFC’s).

18

June 2009

Public Consultation and Disclosure Process

The BAP Project in each country follows the regulatory public consultation and disclosure process in accordance with the relevant national legislation, EU Directives and the Aarhus and Espoo Conventions in line with international best practice.

Consultation is being held with Statutory Stakeholders, NGOs and members of the public in the project area. This is happening in the following three main stages:

Siting and Routing.

Scoping meetings.

ESIA Review.

19

June 2009

– Pipeline Consortium Burgas-Alexandroupolis LtdGazprom NeftRosneftTransneft

RUSSIAN SIDE( 51 % )

BULGARIAN SIDE( 24.5 % )

GREEK SIDE( 24.5 % )

JSC Pipeline Burgas-Alexandroupolis BGTechnoexportstroy

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

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

Greek State ( 1% )

TRANS-BALKAN PIPELINE BV SHAREHOLDERS

20

Slide Number 1Slide Number 2Slide Number 3Slide Number 4Slide Number 5Slide Number 6Black Sea �Crude Oil Export Alternatives Bypassing the StraitsSlide Number 8Slide Number 9Slide Number 10PROJECT BACKGROUNDPRELIMINARY PROJECT CHARACTERISTICS �FOR A CAPACITY OF 35 ÷ 50 MTASOME MAJOR CONSULTANTS OF TBPSlide Number 14CURRENT ACTIVITIESSlide Number 16Slide Number 17Legislation and Standards �about the Environment Public Consultation and �Disclosure ProcessSlide Number 20