corporate profile - 2012.pdf

CORPORATE PROFILE

ÇALIK ENERJİ SAN. VE TİC. A.Ş.Büyükdere Caddesi Nr: 163 34394 Zincirlikuyu, Istanbul, TurkeyTel: (00 90) 212 306 50 00-97Fax: (00 90) 212 306 29 66www.calikenerji.com

OPERATIONAL EXCELLENCE...

Contents

In Brief

Engineering & Construction

Power Systems

Oil & Gas

1

Çalık EnErjİ, onE of TurkEy’s hıghly moTıvaTEd and fasTEsT growıng EnErgy companıEs,

ıs offErıng compETEnT Epc, EnErgy gEnEraTıon & dısTrıbuTıon, oıl and gas procEssıng, TransporT and

markETıng soluTıons worldwıdE.

2012 marked an outstanding year in Çalik enerjİ’s growing performance.

ThE company complETEd ıTs mosT ExTEnsıvE projEcT - ThE navoı ccpp ın uzbEkısTan and ıs consTrucTıng Two

major powEr planTs ın ıraq and sıgnEd onE conTracT for gardabanı ccpp ın gEorgıa and onE conTracT for ElEcTrıcıTy dısTrıbuTıon projEcT ın TurkmEnısTan.

with an excellent track record of completed

projects, the company is known as a reliable partner within the international energy sector.

wıTh clEar, wEll sTaTEd dEvElopmEnT sTraTEgıEs, placıng

hıgh valuE on a crEaTıvE and proacTıvE busınEss approach Çalık EnErjı conTınuEs ıTs sTEady growTh addıng valuE To

ıTs parTnErs and sharEholdErs.

in 2011, Çalik enerji was ranked as the world’s 129th largest international contractor by enr.

1

2

IN BRIEF

ÇALIK ENERJİ CORPORATE PROFILE

ÇALIK ENERJİ HIGHLIGHTS

» Established in 1998 » Headquartered in Ankara-Turkey » Wholly-owned by Çalık Holding » Branch offices in Iraq and Turkmenistan, Uzbekistan, Georgia » Liaison offices in Dubai, Moscow, Albania » 500+ experienced core staff » Ranked world’s 129th largest International Contractor by ENR.

Key Indicators (US$ thousands) 2012 (US$ thousands)

Total Revenues 1,387,894

OPERATING Profit 107,256

EBITDA 128,315

Number of Employees 4,431

(Including YEDAŞ and country/site organisations)

Integrated value chain capabilities in the fields of utilities, power and oil.

3BuSINESS uNITS AS INvESToR ANd SERvIcE PRovIdER

As of 31 December 2012, the total assets of Çalık Enerji were US$ 1,265.4 million, and for the year ending 31 December 2012 sales were US$ 1,387.9 million, operating profit was US$ 107.3 million, and EBITDA was US$ 128.3 million.

Upstream Midstream Downstream

Power Systems Utilities

Çalık Enerji A.Ş. Consolidated Total Revenues (US$ thousands)

1,136,4511,387,894

461,466

319,342

386,893

85,653

666,054

385,197

528,267

52,776

2011

2012

2010

2009

2008

2007

2006

2005

2004

2003

Considering the potential for growth both in Turkey and its immediate neighborhood, Çalık Enerji is positioning to capture investment opportunities and to provide engineering, procurement and

contracting services to energy infrastructure markets.

4

IN BRIEF


ÇALIK ENERJİ STRATEGY

Capacity Building• Organization & Systems Development• Reinvestment of surplus cashflow

Service Business

Asset Ownership Capacity

Building

Asset Growth

•Focus on growing presence in EPC and distribution in the region •Expanding across the electricity value chain through development of own power generation portfolio

5

Power Systems Strategy In the area of power distribution and generation to build on existing expertise and the expansion of the Turkish electricity market, privatization of state owned distribution channels and liberalization of the electricity generating sector.

EPC StrategyReinforce existing operating capability in engineering, procurement and construction projects to achieve operating capability in engineering, procurement and construction projects with a sustainable backlog greater than US$ 1.5 billion.

Oil & Gas Strategyis to gain access to exploration and production rights in Turkey and near abroad at low cost. In the longer term monetize assets after the initial exploitation of reserves, while retaining a stake in proportion to capital allocation targets.

Development•2000 MW generation

Operations Upstream• 15 active license•Operations in 2

countries

Development•Mid & Downstream

Licenses secured for 10 mtpa refining & 50 mtpa

pipeline operations

Çalık enerji’s strategy is to harness the synergies that exist between its distribution and power generation sector, EPC activities and oil & gas exploration and production business to exploit the potential opportunities afforded by increasing demands for energy, combined with the increasing liberalization of the energy sector. Çalık Enerji is engaged in the development of requisite energy infrastructure, in the areas of power generation and petroleum refining, pipeline transportation.

EPC•Projects completed

USD 0.6 billion •Ongoing work USD 0.8 billion

•Backlog USD 1.0 billion•Tender pipeline

US$ 3.5 billion

Operations•4.5 TWH/yr distribution

operational • 110 Million

KWh/yr generation under construction

Current activities: Current activities: Current activities:

1 Status 31.12.2012

6

IN BRIEF


Targeting long-term growth portfolio…

ÇALIK ENERJİ ouTLooK

7

PErfOrmanCE fOCuS

In the near-term, we are emphasizing

performance focus. This means that we

work on continuous improvements in

operating performance, with an emphasis

on execution capability in Engineering,

Procurement and Construction of power

generation plants. We have initiatives

underway that increase our order book

to sustainable levels. We complement

our execution capability through joint

ventures with parties selected for their

complementary capability. This allows us

to secure a bigger market share of new

power generation developments in Central

Asian and Middle Easter markets. We

expand the EPC service offering to the Oil

and Gas Sector based on the extrapolation

of capability acquired in the EPC business

for power generation. Margin performance

is supported by improvements in operating

capability thereby offsetting margin

erosion stemming from competition.

GrOwth fOCuS

Acquisition capital of US$ 441 million was

already committed for the acquisition

of YEDAŞ interms of the privatization

process. Further growth in distribution

by acquisition is considered for the near

to medium-term because the successful

integration of YEDAŞ into the operating

structure of Çalık Enerji has demonstrated

the value of this business strategy.

Organic capital investment is planned

for power generation projects and the

ongoing focus on the further exploration

and appraisal of already secured upstream

licenses. Power generation growth will be in

carefully selected renewable and thermal

power generation projects which in totality

provide for a robust portfolio approach to

management of risk and reward.

Upstream license commitments dictate

Çalık Enerji’s oil and gas operating activity

for the period 2013- 2015. Selectively, new

access to new licenses will be sought of

their potential leads to an improvement in

the overall portfolio potential.

FocuS oN dELIvERYnEar-TErm pErformancE focus,

mEdıum-TErm focus on sharEholdEr valuE growTh &long-TErm focus on maTurıng nExT-gEnEraTıon projEcTs.

Maturing Next-Generation Projects

Çalık Enerji has built a portfolio of

options which will underpin the long-

term sustainable growth of the business.

Besides the Samsun-Ceyhan Crude Oil

Pipeline Project and the Adana East

Mediterranean Refinery Project, there are

further power generation projects and two

overseas oil & gas exploration targets in

our long-term growth portfolio. Market

conditions permitting these long-term

options will be realized with shareholding

levels adjusted in line with capital

allocation priorities and operational

synergies realized across the expertise

spectrum of Çalık Enerji.

In 2013 Çalık Enerji will complete

the acquisition of 2 new distribution

companies and commerce business

operations: ARAS EDAŞ in Turkey, and

KOSOVO Electricity Distribution Company

in Kosovo. The privatization tenders for

both were won by Çalık, in the previous

year, in the case of KOSOVO in partnership

with Limak.

8 9

ENGINEERING & CONSTRUCTION


ENGINEERING, PRocuREMENT & coNSTRucTIoN

what wE DO…

• Customer acquisition & liaison

• Proposal management

• Project management

Çalık Enerji’s experience in efficient project execution is a guarantee for completion of projects on time, and on budget, in accordance with the best practices in HSE.

ExCEllEnCE

in COntraCtinG

Man

agementEngineering

ProcurementConstruc

tion

8

Management


8 9Çalık EnErjı ıs commıTTEd To provıdE ThE mosT EffEcTıvE sErvıcEs

EvEN IN THE MoST dIFFIcuLT BuSINESS ENvIRoNMENTS.

• Power systems (simple cycle; combined cycle; hydro; transmission)

• Pre-engineering (power systems distribution)

• Detailed design & engineering management (power systems)

• Licensed units (turbines, steam generators)

• Non-licensed units

• Global procurement

• Construction management (power systems, oil & gas)

• New built projects

• Expansion projects

BuSinESS mODEl

Project management

Engineer Procure Construct Commission Operate Maintain

9

Engineering Procurement Construction

10 11



Power Plants (Thermal and Gas Fired)

Oil & Gas field Development Projects (Processing Facilities)

Oil & Gas Storage and transmission Projects (Pipelines, Pump Stations, Compressor Stations, Storage Facilities)

BUSINESS LINES

10 11STRATEGIC MARKETS

• Turkey • Turkmenistan• Georgia• Uzbekistan• Iraq

• Russia• Kazakhstan• Libya• Algeria• Nigeria• Albania

• Tunisia• Saudi

Arabia• United Arab

Emirates• Kuwait

Corporate Center

Existing Markets

Future Markets

Corporate CenterExisting MarketsFuture Markets

libya

turKEY

iraq

uzbekistan

turkmenistanGeorgia

russia Kazakhstan



ouR vISIoN FoR THE FuTuRE… EXPANd INTo EPc FoR oIL & GAS

EPC Power Systems+EPC Oil & Gas

EPC Power Systems+Oil & Gas

Building on established logistical and in-country operations capability in Central Asia, Iraq & Georgia

EPC Power Systems

TODAy TOMORROW

Building on existing capability and adding new capability

Customers: National & Municipal power generators and distributors

Customers: National & private sector oil & gas producers

12

Al-Khairat Power Plant 1250 MW, Iraq, March 2013

13

14 15



EPc SERvIcES – ouR oPERATING PoLIcY

GrowthOur goal is to grow our customer base, service offerings and geographic markets, always in harmony with offering value to the customer.

Quality And Management Systems•DynamicOrganization•CompetitiveModel•OperationalFlexibility•CustomerSatisfaction•ContinuingGrowth•Sustainability

Operational ExcellenceMonitoring of schedule, budget, quality, equipment to spot potential problems. Focus on liaison with customer throughout entire project implementation time.

Experienced WorkforceExperienced employees - mix of in-house and externally trained staff all from world renowned Turkish contracting background. We strive for best practice implementation.

Pre Job PoliciesEfficient communication with customer during design, work planning & permitting process; continuity of technical staff to avoid repetition and save customers time.

Startup FlexibilitiesDevelop best place for job execution to maximize personnel & equipment performance. Key staff on site to improve quality of job execution. Full co-ordination between site and in head office. Technical staff to avoid repetition and save customers time.

Geographically focused with global logistical & in-country service capabilities. Established markets: Turkmenistan, Uzbekistan, Iraq, Georgia.


14 15Çalık EnErjİ bElıEvEs ın ThE commıTmEnT To pEoplE,

qualıTy and ThE EnvıronmEnT

16 17



ouR HSE coMMITMENT

• We are committed to reach top quartile HSE performance as measured by the global engineering contracting sector.

• We are committed to create a work environment on site in which:- Zero accidents;- Incidents are reported even if they are minor;- A safe workplace is ensured;- All employees receive safety training. • We are striving to create a culture in which everybody realizes that:- Safety is his or her responsibility;- An injury incident is not a statistic but a person who was negatively affected by our

organizational system to which we all contribute.

Dr. Saim Dinç General Manager


16

16 17PRoJEcTS AT oNE GLANcE

Project Detail Capacity Duration Status

Turkmenistan Turkmenbashi Refinery Power Plant 126,4 MW 2001 2003 Completed

Turkmenistan Abadan Power Plant 123,6 MW 2002 2003 Completed

Turkmenistan Balkanabat Power Plant 126,4 MW 2002 2003 Completed

Balkanabad 220/110 kV Switchyard 2003 Completed

Turkmenistan Ashgabat Power Plant 254 MW 2004 2006 Completed

Turkmenistan Dashoguz Power Plant 254 MW 2006 2007 Completed

Amuderya HV Power Transmission/Distribution 2007 Completed

Dashoguz 110 kV Switchyard 2007 Completed

Turkmenistan Balkanabat Power Plant II 254 MW 2008 2010 Completed

Turkmenistan Ashgabat Electricity Distribution 2012 2015 Ongoing

Project Detail Capacity Duration Status

Uzbekistan Navoi Combined Cycle Power Plant 478 MW 2009 2012 Delivered

Iraq Al Khairat Simple Cycle Power Plant 1,250 MW 2011 2013 On Going

Iraq Nainawa Simple Cycle Power Plant 750 MW 2011 2013 On Going

Georgia, Gardabani Combined Cycle Power Plant 230 MW 2012 2014 Started

18 19



coMPLETEd PRoJEcTS (TuRKMENISTAN)

complETEd projEcTs

Turkmenbashi rafinery power plant

Capacity 126.4 MWEquipment Spec. Simple Cycle, 3 X GE-PG6581 (Frame6B)Duration for EPC/Warranty 14 months / 12 monthsVoltage Level 35 KV and 110 KVDelivery Date February 2003Employer Ministry of Petroleum and Natural Gas, TurkmenistanScope LSTK-EPC, Prime Contractor

balkanabat power plant

Capacity 126.4 MWEquipment Spec. Simple Cycle, 3 x GE-PG6581-B (Frame6B)Duration for EPC/Warranty 8 months / 12 monthsVoltage Level 110 KV and 220 KVDelivery date October 2003Employer Ministry of Energy, TurkmenistanScope LSTK-EPC Prime Contractor

balkanabat 220/110 kv switchyard

Location Balkanabad, TurkmenistanDelivery date October 2003Employer Ministry of Energy, TurkmenistanScope LSTK-EPC Prime Contractor

dashoguz power plant

Capacity 254 MWEquipment Spec. 2 x GE-PG9161-E (Frame 9E) Duration for EPC/Warranty 14 months / 24 monthsVoltage Level 110 kVDelivery date March 2010Employer Ministry of Energy, Turkmenistan Scope LSTK-EPC Prime Contractor

amuderya hv power Transmission/distribution

Location Turkmenabad, TurkmenistanDelivery date March 2007Employer Ministry of Energy, Turkmenistan Scope Engineering, Procurement, Logistics and Erection Supervision

dashoguz 110 kv switchyard

Employer Ministry of Energy, Turkmenistan Scope LSTK-EPC Prime ContractorLocation Dashoguz, TurkmenistanDelivery date October 2007

abadan power plant

Capacity 123.6 MWEquipment Spec. Simple Cycle, GE-PG9161-E (Frame 9E)Duration for EPC/Warranty 14 months / 24 monthsVoltage Level 110 KVDelivery date October 2003Employer Ministry of Energy, TurkmenistanScope LSTK-EPC, Prime Contractor

ashgabat power plant

Capacity 254 MWEquipment Spec. 2 x GE-PG9161-E (Frame 9E) Duration for EPC/Warranty 11 months / 24 monthsVoltage Level 110 KVDelivery date February 2006Employer Ministry of Energy, Turkmenistan Scope LSTK-EPC Prime Contractor

balkanabat power plant - 2

Capacity 254 MWEquipment Spec. Simple Cycle, 2 x GE-PG9161-E (Frame 9E) Duration for EPC/Warranty 22 months / 22 monthsVoltage Level 110 kV and 220 kVDelivery date March 2010Employer Ministry of Energy, Turkmenistan Scope LSTK-EPC Prime Contractor

18 19

NAVOI combined cycle power plant project

Capacity 478 mwEquipment Spec. Combined CycleDuration EPC / Warranty 36 months / 24 monthsVoltage Level 220 kVEmployer Ministry of Energy, UzbekistanScope LSTK-EPC Consortium Partner

COMPLETED PROJECTS (2012)UZBEKISTAN

20 21



OUR CAPABILITY IN IRAQ

Çalık Energy offices

Mosul Office

Nainawa Power Project

Camp and Offices

Kerbela Office

Khairat Power Project

Camp and Offices

ErbilO & G Office

Power Office

BaghdadMain Office & HousesBaGhDaD

KErBEla

Khairat

mOSul

nainawa

ErBil

20 21

AL-KHAIRAT simple cycle power plant project

Capacity 1,250 mwLocation IraqDelivery April 2013

Key Figures » Tank Farm of 11 Crude Oil and Diesel Storage Tanks over 4,000 tons of Steel » Total Hydrocarbon Storage, Capacity 1.2 MMbbl » Fuel Unloading Station, Capacity of handling 40 KBOPD Crude Oil » Crude Oil Pipeline Connection (Metering Station, Pigging Station) » Crude Oil Treatment Plant, Capacity 70 KBOPD » Total Engineering manhours are estimated to be 125.000 » Crude Oil Forwarding System, Capacity 64 KBOPD » Average Hydrocarbon Pipe dia. >8” » Over 100,000 dia. inch welding on Hydrocarbon Piping » 8,000 gpm capacity installed Fire Fighting System » Full Fire Fighting and Foam System as per NFPA » Extensive Oil Water and Drainage System over 10 API Oil Seperators » 60,000 meters of piling works » 7.8 million man-hours of construction

ONGOING PROJECTS IRAQ (2012 – 2013)

22 23



Capacity 750 mwLocation Iraq

Key Figures » Tank Farm of 12 Crude Oil and Diesel Storage Tanks over 3,500 tons of Steel » Total Hydrocarbon Storage, Capacity 1.0 MMbbl » Fuel Unloading Station, Capacity of handling 30 KBOPD Crude Oil » Crude Oil Pipeline Connection (Metering Station, Pigging Receiving Station) » Crude Oil Treatment Plant, Capacity 50 KBOPD » Crude Oil Forwarding System, Capacity 64 KBOPD » Average Hydrocarbon Pipe dia. >8” » Over 80,000 dia. inch welding on Hydrocarbon Piping » 8,000 gmp capacity installed Fire Fighting System » Full Fire Fighting and Foam System as per NFPA » Extensive Oil Water and Drainage System over 15 API Oil Seperators » 5.8 million man-hours of construction

ongoıng projEcTs IRAQ (2012 – 2013)

NAINAWAsimple cycle power plant project

24

POWER SYSTEMS


PoWER SYSTEMS

what wE DO…

ExCEllEnCE in

CuStOmEr SErviCE

Acq

uire

Operate

Develop

With a proven track record of company turnaround and operational efficiency in electricity distribution business, Çalık Enerji is positioned to repeat the successful business model it has implemented in yEDAŞ in other organizations, i.e. KOSOVO (with Limak Group) and ARAS EDAŞ (with Kiler Group) as an investor partner.


24

25ELEcTRIcITY dISTRIBuTIoN & PoWER GENERATIoN

• Electricity distribution

• Gas distribution

• Distribution network & power generation

• Retail electricity & natural gas to customers

• Maintenance & customer services

• Power generation capacity

BuSinESS mODEl

Management of project realization and operational performance

Distribution & generation

Cost leadership

Load balance optimization

Fuel mix optimization

Wholesale trading

Sustainable investment & shareholder

return

Our mission is to provide security of supply to our customers

Acquire Operate Develop

25

26

POWER SYSTEMS


SamSun9,490 km2

muĞlaYataĞan tPP

BurSa KiZKaYaSi

hEPP

SarPinCiKiZmir wPP

DEmİrCİlİiZmir wPP

ÇanKiriOrta tPP

KiriKKalECCPP

PoWER GENERATIoN PRoJEcTS PoRTFoLIo

Power GenerationSİnOP

5,862 km2

ÇOrum12,820 km2

BurSa

KaYSErİ

Wind Power Plant

Thermal Power Plant

Hydro Power Plant

79%Thermal Power

Plant - Combined Cycle Power Plant

17%Hydraulic

Power Plant

4%Wind

Power Plant

Capacity Distribution

Annual Generation Distribution

92%Thermal Power

Plant - Combined Cycle Power Plant

2%Hydraulic

Power Plant

6%Wind

Power Plant


27

aKSu hEPP

aDaCamİ hEPP

DÜZhanlar hEPP

Çalık EnErjİ has buılT a porTfolıo of opTıons whıch wıll undErpın ThE long-TErm susTaınablE growTh of ThE busınEss.

SamSun9,490 km2

amaSYa5,690 km2

OrDu6,001 km2

Electricity Distribution

Gas Distribution

BURSAGAZNumber of subscribers: 710,000Market share: 3.4%

KAySERİGAZNumber of subscribers: 380,000Market share: 1.3%

Gas Distribution

Operates in Black Sea region Covering 5 citiesNumber of subscribers: 1.6 millionTotal consumption: 4.1 TWhMarket Share: 3.0%

Electricity Distribution

Covering 5 citiesNumber of subscribers: 458.000 millionTotal consumption: 4.5 TWh

Çalık Enerji - limak Kosova Electricity Distribution

ÇOrum12,820 km2

KaYSErİ

yEDAŞ

28

POWER SYSTEMS


gEnEraTıon

Project Status Capacity (MWe) Annual Generation (GWh)

Çankırı Orta TPP (lignite) Pre-construction 150 985

Muğla Yatağan TPP (lignite) Engineering 160 1,050

Kırıkkale CCPP (NG) Engineering 1,200 8,000

Düzhanlar HEPP (Borçka, Artvin) Pre-construction 12 46

Adacami HEPP (Rize) Under construction 30 105

Kızkayası HEPP (Mustafakemalpaşa, Bursa) Pre-construction 112 314

Aksu HEPP (İspir, Erzurum) Pre-construction 160 372

Sarpıncık WPP (Izmir) Financial close 32 115

Demircili WPP (Izmir) Financial close 40 155

Total 1,914 10,940

29ElEcTrıcıTy dısTrıbuTıon busınEss ın TurkEy

5 CITIES

ElECtriCitY DiStriButiOn

1.6 MILLION CUSTOMERS

4.5 TWHCONSUMPTION

4.0%MARKET SHARE

SİnOP5,862 Km2

SamSun9,490 Km2

OrDu6,001 Km2

amaSYa5,690 Km2

ÇOrum12,820 Km2

30


OIL & GAS UPSTREAM

oIL & GAS

what wE DO…

ExCEllEnCE in

PEtrOlEum rESOurCE

DEvElOPmEnt

Acquire Develop O

perateCom

mer

cial

ize

Acquire

Develop

Operate

Commercialize


30

31

Exploration licenses Discovered reserves

Production from prospective & discovered resources

Drilling Workover Oil Production

Discovered proven and/or producing reserves

-

Oil pipeline transit solutions Central East Turkey

-

-

-

Oil refining capacity South Turkey

Bitumen import

Petroleum products marketing

Upstream Midstream Downstream

OIL & GAS VALUE CHAIN WHERE WE OPERATE 31

32


OIL & GAS UPSTREAM

UPSTREAM ouR vISIoN FoR THE FuTuRE

Middle East and North AfricaTurkmenistan

& Iraq

Selected InternationalMarkets

Turkey

TODAy TOMORROW

Participation in upstream petroleum operations

Delivery of oil field services to 3rd party customers and petroleum operations in which we participate

33UPSTREAM CAPABILITIES

REGIoNAL EXPERTISE IN GEoLoGY ANd PETRoLEuM SYSTEMS

Arabian Plate

• South Eastern Turkey geology expertise transferable to geology of Arabian plate

• Arabianplateexpertisetransferable to geology of Horn of Africa

• ArabianPlate–geology- Cretecous petroleum system- Jurassic petroleum system

Gondwana Plate

• Gondwana plate expertise transferable to geology of North African basins

• Gondwanaplate–geology- Silurian petroleum system- World class source rock

• Orogenybackground- Reservoir tectonics- Trap formation

East africa

Caspianturkey

arabian Plate

north africa

• Caspian (Black Sea, Caucasus, Turkmenistan expertise transferable to drilling and geology)

TOMORROW

Çalık Enerji Expertise

34


OIL & GAS UPSTREAM

UPSTREAM CAPABILITIESINTEGRATED TEAM WITH REGIONAL EXPERTISE IN EXPLORATION, DEVELOPMENT AND PRODUCTION OPERATIONS

Geological evaluationGeological mappingMeasuring stratigraphic sectionsCollecting geological samplesIntegrating the data with subsurfaceWell log interpretation

3D basin modelingGeophysical interpretation3D Seismic Interpretation SystemsSeismic data acquisition (2D&3D)Seismic data processing (2D & 3D)Seismic data interpretation3D reservoir modeling

Well design and planningField development planningBasic engineeringCost estimationProduction planningProduction optimization (EOR)Production operationsHeavy oil production operationsSulphur handling

35EXPLORATION AND APPRAISAL IN TURKEY

Antep Project

Sinan Project

Besni Project

36


OIL & GAS UPSTREAM

GAS DISTRIBUTION

In 2004, Çalık Enerji moved into the energy distribution sector through the acquisition of Bursagaz as part of Turkey’s privatization of its natural gas distribution network. Bursa is the third major gas consumption center in Turkey after Istanbul and Ankara and as part of the deal, Çalık Group acquired a 30-year operator’s license. In 2007, the Group expanded its gas distribution operations through the acquisition of Kayserigaz, the natural gas distributor in and for the City of Kayseri. In line with its growth and restructuring strategies, between April 2007 and October 2008 the Group sold an 80% interest in each of Bursagaz and Kayserigaz to Ewe Enerji A.Ş., the Turkish subsidiary of Ewe Aktiengesellschaft, but remains as a strategic minority partner in both companies with a 10% stake. The remaining 10% of each of Bursagaz and Kayserigaz is held by the municipalities of Bursa and Kayseri.


37

Antep Project

BURSAGAZ2.8-3.0 BCM per year775,625 subscribers647,494 other users5010 km of distribution network80% network coverage3.4% market share of TurkeyTL 441 million revenue

KAYSERIGAZ0.385 BCM per year343,000 subscribers320,000 other users2100 km of distribution network75% network coverage1.2 % market share of TurkeyTL 160 million revenue

38


OIL & GAS UPSTREAM

UPSTREAM CAPABILITIESUPSTREAM LICENSE PORTFOLIO (STATUS 2013)

DistrictLicense

Name Grant DateDate of Seismic

Acquisition

Date of Subsurface

Interpretation Date of Well Status

Siirt14494 04.01.2009 2010-2011 2012

2 wells drilled 2010-2011 Discovered 40 APIO oil

4495 04.01.2009

4778 20.11.2010 2011 2012 2013 Well will start in January 2013

5030 15.05.2012 2013 2014 2014 programmed

Gaziantep

4413 11.09.2008 2011 2012 2012Well drilled to a depth of 2000 m

and completed as dry hole

4414 11.09.2008

4415 11.09.2008

4416 11.09.2008

5076 20.06.2012 2013 2014 2015 programmed

5077 20.06.2012

5078 20.06.2012

4614 18.10.2010 2011 2013 2014 programmed

Van4909 10.07.2011 2014 2015 2015 programmed

4910 10.07.2011

Konya24705 18.03.2011 2014 2015 2015 programmed

4706 18.03.2011

Trakya 3864-5059 08.04.2004 * 20092 wells drilled

2008-2009 1,450m3/d

1 Siirt licenses are also used for unconventional play and it is the intention of Çalık Enerji to increase acreage position in this basin. 2 Konya licenses are for Gas Storage.

40


OIL & GAS UPSTREAM

thraCE liCEnSE nO. 3864 –firSt GaS DiSCOvErY Of ÇaliK EnErJİ• Geochemical field survey conducted and 5.700 field samples collected and

analyzed in 2007. • Geological field study was completed in 2009• 100 Km 2D new seismic data acquired and interpreted in 2009.• Banarlı 3-4 wells drilled in 2008 and 2009• Exploration well Karaca-1 drilled in 2010• One well was completed as gas producer in 2010• Producing form Banarlı-3 at 1,450 scm/d

upsTrEam capabılıTıEsUPSTREAM LICENSE PORTFOLIO (STATUS 2013)

KOnYa liCEnSE nO. 4705 – 4706: aPPraiSinG unDErGrOunD GaS StOraGE POtEntial • First Private Gas Storage Project• To be come the second gas storage in the country when realized• 1.0 Bcm capacity• Potential partnership with two major Companies

Storage Place : Tuz Gölü (Aksaray-Konya) Storage Type : Salt Dome Storage Capacity : 1.0 bcm (Working Gas) Total Gas Volume : 1.4 bcm (Total Volume) Inj./Withdrw. Pres : 188-75 bar

Sİİrt liCEnSE nO. 4494 , 4495, 4778 anD 5030: aPPraiSinG unCOnvEntiOnal rESOurCE POtEntial• Prospective Silurian shale that holds shale oil potential• The 5 cores from Çalıktepe-2 proved that light oil has been generated and trapped in

the shale• The Çalıktepe-1 and 2 wells have been cased and suspended for shale testing• Appraising the unconventional resource potential:

• Targeted drilling (vertical)• 2013 program: frac and test Silurian shale to assess resource potential

• Knowledge acquisition from Canadian shale oil expert• Resource growth based on presence of Silurian shale in 3 of our licenses• Prospective resource estimate 95 MMbbls (P50) for 3 licenses • Planning to acquire more unconventional acreage

Sİİrt liCEnSE nO. 4494 – 4495 – firSt Oil DiSCOvErY Of ÇaliK EnErJİ(Çalıktepe-1 First Discovery 40o API 2010)• Çalıktepe-1 well was drilled in 2010 to 2,500 m. • Çalıktepe-1 well made a discovery of Silurian sourced Ordovician sandstone.• 215 Km 2D Seismic and 230 Km2 3D seismic data collected and interpreted by the

second quarter of 2011.• 1 Appraisal well drilled in second half of 2011.• Expected recoverable oil resource is 4 to 50 MMbbl.

41

Capabilities are in our people…Demand in CIS and Middle East oil field service market caused the members of the team to gather and gain extensive experience over several years.

Our field services team has the operating experience in areas such as over- and under-balance drilling, hole enlargement, core drilling, completion operations, side tracking, well control, lost circulation management. Well design and realization of drilling & work-over operations to international oil field standards.

If desired by the customer our field services team can provide project management, construction, installation and commissioning services for the oil & gas production facilities of our customers. These are delivered in collaboration with our Engineering & Construction division.

Our people have acquired their experience in the oil- and gas fields from challenging petroleum operations areas such as Kazakhstan, Turkmenistan, Iraq, Libya, Syria, Azerbaijan, Iran, Egypt, Saudi Arabia and Turkey.

Our people work as one team…

The team has proven its ability to:

• Translate individual expertise into integrated and reliable delivery of field services to our customer.

• Apply the operating team’s collective expertise to finding and implementing engineering and operating solutions to the most demanding challenges our customers may face.

UPSTREAM CAPABILITIESFIELD SERVICES – OUR CAPABILITIES

42


OIL & GAS UPSTREAM

Integrated Project Management Our approach is to deliver high quality services to the customer through the proven abilities and skills of our engineers and operators, and working in harmony with the customer to deliver operating results to international oil field standards.

Our Field Operations Group includes world class geologists, engineers, analysts and management teams.

Our team can manage integrated field service projects on behalf of our customer, with the collective expertise of on-site and headquarter staff always focused on delivering quality services to our customers.

We implement improvement steps by learning from delivered services. Thereby we ensure long term working relationships with customers and host country petroleum authorities alike.

Integrated Well Services Our strength is to provide an integrated service to the customer and working closely with the authorities of the project country for the best mutual understanding so that the project objectives are clearly understood and interests are aligned. The core competence is in providing necessary expertise in technical and commercial disciplines to the oil and gas industry at reasonable cost. Innovation and best industry practices are the fundamentals for creating value for our customers throughout the life of their assets, from exploration and appraisal, through development and production.

UPSTREAM CAPABILITIESFIELD SERVICE OPERATIONS – THE VALUE PROPOSITION TO OUR CUSTOMERS


43

Areas of OperationGeographically focused with service capabilities near the fields; established market: Turkmenistan

Experienced WorkforceEmployees acquired expertise from a long service as drilling & production operators of the Turkish Petroleum Corporation. We strive for best practice implementation.

GrowthOur goal is to grow our custom base, service offerings and geographic markets, always in harmony with our value offering to the customer

Startup FlexibilitiesIdentifying the optimum place for job execution to maximize equipment performance. Organize crews into focused teams to complete multiple tasks simultaneously. Key staff on site during rigs up to improve quality of job execution

Pre-Job PoliciesEfficient communication with customer during design & work planning process; continuity of technical staff to avoid repetition and save customers time

Operational ExcellenceMonitoring of equipment to spot potential problems. On site maintenance of equipment. Proactive replacement of wear items before failure can take place.

UPSTREAM CAPABILITIESFIELD SERVICES – OUR OPERATING POLICY

43


OIL & GAS UPSTREAM

44UPSTREAM CAPABILITIESFIELD SERVICE OPERATIONS – OUR TRACK RECORD

UPSTREAM CAPABILITIESOUR COMMITMENT TO SUSTAINABLE DEVELOPMENT

- Completed more than 100.000 meters of drilling in Turkmenistan

- Successful implementation of the integrated project management system

- Deep drilling (26 wells) in high pressure and sour operating conditions present in 4 different fields of Turkmenistan

- Drilling operations have been done in collaboration with world class drilling contractor

- Demonstrated capability in the following areas of expertise:

• High HSE standards; no lost time due to injury or accident

• High tech western technology used in challenging drilling environment:

• High pressure and high temperature (12000 psi and 156OC)

- High H2S content (6-7% by volume)- Hard rock formations- Salt formations- Reactive Shales- Shallow Gas- Penetration through depleted

reservoir zones

• Target depths of 3000 – 5000 meters both for oil and gas

• Integrated project management for multi-site operations:

• Planning and technical operation,• Procurement & Logistics Customer benefit from our field service operations – customer increased production by 64%

We use our operating capacity in harmony with the sustainable development objectives of the country where we operate:

• Economic efficiency of our operations• Social benefit of our operations• Environmental compatibility of our

operations

We are conscious of the fact that our operations must have a positive impact for the people of our host country.

Field NameBefore Çalık Enerji

(Bbl/d)After Çalık Enerji

(Bbl/d)Total Investment

(Million USD)

Nebitlije 2,000 7,500 155

G. Kamıshlıja 14,000 21,250 320

Akpatlawuk 9,000 13,000 185

TOTAL 25,000 41,750 660

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» Certificates - ISO 9001:2008- ISO 14001:2004- OHSAS 18001:2007

» Policies - Commitment to continuously improve

services within the framework of ISO 9001:2008 Quality Management System while meeting the legal requirements of the host country

- Commitment to implement ISO 14001 Environmental Management System

- Commitment to preserve human health and safety by implementing OHSAS 18001 Occupational Health and Safety System

» risk management - Prior to operation start, hazards

and risks are defined and mitigated through operational safeguard planning.

- A pre-project appraisal to optimize project costs, schedules and economics is provided to the customer.

- This is followed by execution plan which includes basis of design, costs over time, risk management actions, HSE management responsibilities and action plans, all based on the customer’s statement of requirements.

UPSTREAM CAPABILITIESOUR QUALITY, HSE POLICIES & RISK MANAGEMENT POLICIES

46


Oil & GaS MID- & DOWNSTREAM

MID- & DOWNSTREAMOUR CAPABILITIES

• Tank farm, pipeline & refinery infrastructure

• Product marketing & sales

• Feasibility• Conceptual design• Technology selection• Cost estimation• Project execution

planning• Operations planning• Contractor supervision

• Economic analysis• Regulatory compliance

framework• EPC contracts - strategy,

negotiation, supervision• Ownership structure -

definition, negotiation, implementation

• Financing structure - definition, negotiation, implementation

• Product logistics & sales - planning, implementation, supervision

ScopeTechnical definition

of petroleum infrastructure

Commercial definition


47

Samsun Ceyhan Crude Oil Pipeline Project•Licensegranted@2006•JVwithItaly’sENIGroup•Capacity:50-70 mtY•Length:555 km•UnloadingTerminal@Samsun•LoadingTerminal@Ceyhan•Pumps/ReducingStationsFeed Completed

MIDSTREAMTRANS ANATOLIAN CRUDE OIL PIPELINE INVESTMENT PROJECT

turKEY

ruSSia

GEOrGia

aZErBaiJan

iran

iraQ

KaZaKhStan

ANKARA

CEYHAN

MOSUL

Existing PipelinesSamsun - Ceyhan Pipelines

KERKÜK

SAMSUN

Samsun Ceyhan Crude Oil Pipeline

Project

Refinery Project

NOVOROSSIYSK

BAKU

İZMİR

Adana Eastern Mediterranean

Refinery•Grass-RootsRefinery•Capacity:200,000 BBl/D - 10 mt/Y•Location:Yumurtalık / Ceyhan-adana•Type:high Conversion (hydrocracker/coker)•Feed:medium heavy•LicensehasbeengrantedtoÇalıkEnerjiPre - Feed Completed

48


OIL & GAS UPSTREAM

DOWNSTREAMPETROLEUM TRADING - BITUMEN IMPORT

» OPEratiOnS EU quality Bitumen Grades• Partnership with global

commodity trade • Deliveries to major ports• Operational capabilities up

to 200 kT

» lOGiStiCS • Delivery by world class

bitumen vessels • Ship and custom clearance• Ship/shore product transfer• Delivery on trucks after

customs clearance• Loading at high speed and

high temperature• Health, Safety and

Environment control procedure

amBarli

DİlOvaSi

DİKİlİ

alİaĞa

CEYhan

SamSuntraBZOn

EU Refinery to Port

From Ship to Road trucks

Marketing Operations

Sales LogisticsControl Process

» SalES • Strong customer base• Strict quality assurance• Supply security• Alternative supply sources• Innovative commercial

arrangements

ÇALIK ENERJİ SAN. VE TİC. A.Ş.

GENERAL MANAGEMENT

Yaşam Caddesi Ak Plaza Nr: 7 Kat: 17

Po Box: 06510 Söğütözü, Ankara, Turkey

Tel: (00 90) 312 207 71 00

Fax: (00 90) 312 207 71 71

HEAD OFFICE

Büyükdere Caddesi Nr: 163

34394 Zincirlikuyu, Istanbul, Turkey

Tel: (00 90) 212 306 50 00-97

Fax: (00 90) 212 306 29 66

ÇALIK ENERJİ ALBANIA OFFICE

Tirana Business Center Bulevardi

“Zogu 1” Tirana, Albania

Tel: (00 355) 422 73 45 – 422 69 49

Fax: (00 355) 422 73 39

ÇALIK ENERJİ TURKMENISTAN OFFICE

Altın Asır Marketing Center Goroglu Street Nr: 77,

744000, Ashgabat, Turkmenistan

Tel: (00 99 312) 39 23 65

Fax: (00 99 312) 39 23 79

ÇALIK ENERJİ FZE

Jafsa Viewvs 19 (Lob) 11.Floor

Office No:1106 JAFZA / Dubai, U.A.E.

Tel: (00 971 4) 884 91 47

Faks: (00 971 4) 884 91 48.

ÇALIK ENERJİ IRAQ OFFICE (POWER SYSTEMS)

Al Wazırıyah Surveying 301/5th Street Nr: 15 Baghdad, Iraq

ÇALIK ENERJİ NAVOI OFFICE

Tashkent City, Mirzo Ulugbek, Afrosiyob St., 14,

(Roison Business Center, 5. Floor ) Tashkent, Uzbekistan

Tel: (00 998 71) 256 01 28, 256 01 29

Fax:(00 998 71) 256 01 42

ÇALIK ENERJİ DAPRAŞ

Büyükdere Cad. Nr:163 34394

Zincirlikuyu, Istanbul, Turkey

Tel: (00 90) 212 306 50 17

Fax: (00 90) 212 212 29 68

TAPCO PETROL BORU HATTI SANAYİ VE TİCARET A.Ş.

Büyükdere Cad. No:163 3439

Zincirlikuyu, Istanbul, Turkey

Tel: (00 90) 212 306 51 90

Fax: (00 90) 212 306 58 90

YEŞİLIRMAK ELEKTRİK DAĞITIM A.Ş. (YEDAŞ)

Mimar Sinan Mah. Atatürk Bul. Nr:19

55200 Atakum, Samsun, Turkey

Tel: (00 90) 362 311 44 00

Fax: (00 90) 362 400 42 05

Contents

In Brief

Engineering & Construction

Power Systems

Oil & Gas

CORPORATE PROFILE

ÇALIK ENERJİ SAN. VE TİC. A.Ş.Büyükdere Caddesi Nr: 163 34394 Zincirlikuyu, Istanbul, TurkeyTel: (00 90) 212 306 50 00-97Fax: (00 90) 212 306 29 66www.calikenerji.com

OPERATIONAL EXCELLENCE...

corporate profile - 2012.pdf

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