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TURKISH PETROLEUM CORPORATION
Co
mp
an
y P
rofi
le
843
560
2006 Summary Information on Income Statement (Million USD)
Consolidated Income
Net SalesOther Income
373 69 7
456 109 6
558 113 61
495 200 31
TPAO Total Domestic Sales Revenue (Million USD)
Crude OilNatural GasService
449
571
732
726
2004
2005
2006
2007*
2006 Summary Information on Income Statement (Million USD)
Consolidated Expenses
430
371
288
Cost of SalesOpexOther Expenses
2006 Summary Information on Income Statement (Million USD)
Consolidated Net Profit
Total Expenses and TaxConsolidated Net ProfitTotal Income
1.403
1.119
284
150
Total International Sales Revenue (Million USD)TPAO
ACGKTMSD & SCP
2004
2005
2006
2007*
384
621
869
35
51
43
28 82
185
435
664
979
* Program
1.678 541
2006 Total Assets (Million USD)
Fixed AssetsCurrent Assets
2.219
Total LiabilitiesMillion USD
Shareholders EquityLong-Term LiabilitiesShort-Term Liabilities
1.790 243 186 2.219
2006 Consolidated Summary Information on Balance Sheet
2004
2005
2006
2007*
2Geological Activities (km )
12.214
10.687
6.752
5.100
147 524 171
209 554 198
288 416 270
368 399 259
Total Capital & Operating Expenditures (Million USD)
Domestic CapexInternational CapexDomestic Opex
2004
2005
2006
2007*
842
961
974
1.026
23D Seismic Activities (km )
Onshore 3DOffshore 3D
1.323 205
595
824 5.419
600 3.500
2004
2005
2006
2007*
2004
2005
2006
2007*
2D Seismic Activities (km)
12.841
18.024
19.211
1.717
814
958
424
1.450
Onshore 2DOffshore 2D
671,8
60,411,9
88,614,2
137,415,1
2004
2005
2006
2007*
Drilling Activities (Thousand Meters)
OnshoreOffshore
13,1 5,8
14,0 9,6
12,9 11,5
14,5 18,4
2004
2005
2006
2007*
Total HC Production (Million Barrels)
18,9
23,6
24,4
32,9
DomesticInternational
* Program
Mehmet UYSALA. Chairman of the Board and A. President
Our highest goal is to meet all Turkiye's oil and natural thgas demand by 2023, “100 anniversary of our Republic."
I have no doubt about TPAO to reach this goal. Only a powerful and experienced company like TPAO can open such bright and achievable horizons in front of our country.
Mustafa Kemal ATATÜRK
Our country is entirely full of treasures and we are like starving people on them. We all are obliged to bring out all these treasures and to find the sources of our wealth and prosperity.
"TO BELONG TO TPAO" and "TPAO LOVE"
"Oil business" is a pleasant love that appears when it infects a person. This love may turn to a "passion" that continues until death, when "belonging to TPAO" is added. Oil worker feels a national pleasure in working for a national company, due to the feeling that " I'm working for my homeland, I'm serving it." and by seeing the contribution of the labor to the country...
con
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Our Vision, Mission, Values
Strategies, Goals and Objectives
Organization Chart of Turkish Petroleum Corporation
Who We Are
A Statement from the President
Board of Directors
General Management
Domestic Exploration and Production Activities
International Exploration and Production Activities
8
9
10
11
12
14
16
20
32
6 TPAO Annual Report 2006
Innovations in Technology
Research Center
Human Resources
Health, Safety and Environmental Protection
TPAO Services
TPAO District Managements
Subsidiaries and Associated Company
Finance
40
44
48
50
54
62
66
70
con
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7TPAO Annual Report 2006
8 TPAO Annual Report 2006
Ou
r V
isio
n To become a regionally effective world - class energy company meeting Turkiye's oil and natural gas demand and to be the most desired company to work with.
Ou
r M
issi
on To bring out oil and natural gas potential of Turkiye and provide
them for the use of Turkish economy, supply new sources of income via international activities and play an effective role in the energy sector, by also actively participating in Turkiye's process of being an Energy Corridor.
Ou
r V
alu
es Merit
Effectiveness and efficiency Teamwork and communication Openness to change and innovativeness Environmental awareness Employee satisfaction Share of responsibility, knowledge, experience and delegation Reliability and honesty
9TPAO Annual Report 2006
GOALS AND OBJECTIVES
TPAO's primary goal is to increase the oil and natural gas reserves and production.
For 2010, TPAO's reserve objective is to have 1.5 billion barrels of oil equivalent which was 558 million barrels of oil equivalent in 2006. From domestic and international fields, TPAO reached over daily average 70.000 barrels of oil equivalent in 2006. In 2010, daily average 300.000 barrels oil equivalent production is another objective of TPAO.
Another goal of TPAO is to increase organizational, operational effectiveness and business efficiency.
TPAO evaluates the achievement of the objectives under this goal with Corporate Performance Criteria. TPAO is determined to improve Wildcat Success Ratio, Reserve Replacement Ratio, Cost per Barrel and ROACE and will accordingly reorganize its business structuring. TPAO gives priority to its objectives about Human Resources, which is the most important asset, and considers continous training and development as the basic principle.
TPAO's another goal is to become an integrated energy company.
By 2010, TPAO plans to diversify its investments in the other fields of oil industry in addition to increasing its activities which are related directly to the security of supply such as transit pipelines and hydrocarbon storage. Having established Alternative Energies Department in 2005, TPAO will intensify its studies especially on hydrogen energy.
STRATEGIES
TPAO's business strategies depend upon three main basis:
1. The Role of Being Turkiye's National Oil Company
It is obvious that Middle East, North Africa, CIS with its vast oil and gas reserves, comprising the two third of the remaining oil and gas reserves of the world, will be the center of gravity for future balancing of supply-demand pendulum and will play the lead role in global oil and gas supply security. Turkiye, as a neighbour and having strong cultural and historical bonds with both the Middle East and Caspian countries, is dedicated to take its role in joining the ongoing projects and supporting all the sincere efforts taking place.
TPAO's strategy in this scope is to serve Turkiye's common interests by carrying out the projects and activities consistent with Turkish foreign policy and security benefits. In order to serve this purpose, TPAO has participated in oil and natural gas production projects in Azerbaijan and Kazakhstan , worldwide projects such as Baku-Tbilisi-Ceyhan (BTC) Crude Oil Pipeline and South Caucasus Natural Gas Pipeline (SCP) and has made great contributions to the concept of turning Turkiye into an Energy Corridor.
2. Continuous Growth and Regional Cooperation Strategy In order to reach its vision set on providing security of energy supply to Turkiye , TPAO realized huge investments to discover oil and natural gas potential of Turkiye. TPAO has increased especially offshore investments in recent years; and has applied risk sharing strategy through establishing consortia with giant oil companies with offshore experience to transfer know-how and technology. TPAO strongly believes that domestic investments will help Turkiye securing its energy supply in medium to long terms.
TPAO plans to enlarge its international portfolio by playing an effective role in the nearby geography especially in the countries in which TPAO is already running operations.
In this context, participation in oil and gas exploration-production projects in Central Asia, North Africa and Middle East is TPAO's priority . TPAO's growth strategy includes acquisition in addition to reserve growth by exploration. TPAO, while progressing towards its objectives is establishing strategic alliances for creating synergy in a win win environment and to share technical and financial risks.
3. Energy Company Strategy
TPAO is determined to reach to its vision of becoming a world-class energy company. Within this framework, hydrogen energy and gas hydrate studies are being conducted within TPAO. TPAO recognized the importance of alternative fuels and is ready to cooperate with all stakeholders in this regard.
Stra
teg
ies, G
oa
ls an
d O
bje
ctives
10 TPAO Annual Report 2006
Org
an
iza
tio
n C
ha
rt o
f T
urk
ish
Pe
tro
leu
m C
orp
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Secretariat to the President
Legal Advisory
Auditing Committee
Defence Secretariat
Advisor to the President
Davut İYRAS
Osman ASLAN
‹smail S‹PAH‹
Şefik VURAL
Vice President
Batman District Management
Adıyaman District Management
Department of Drilling
Department of Well Completion
Turkish Petroleum Int. Co. Ltd.
Murat ALTIPARMAK
Bayram KARA
Besim ŞİŞMAN
Recep ATALAY
Batuhan TÜTEN
Galip ÖZBEK
Vice President
Bureau of The Board of DirectorsLevent TOPÇUOĞLU
Vice President
Department of Exploration
Department of Production
Department of Research Center
Human Resources
Department of Finance
Ahmet Faruk ÖNER
Erol KANMAZ
Ömer ŞAHİNTÜRK
Yahya PEKTAŞ
Fikri NAYIR
Vice President
Thrace District Management
Department of Machinery Supply & Construction
Department of Planning & Coordination
Department of Health, Safetyand Environmental Protection
Board of Searching & Development
Ahmet ADANIR
Adnan EROĞLU
Abdurrahman YAŞAR
Veli ÖZTÜRK
Yusuf AHÇI
Vice President
Department of International Projects
Offices Baku, Libya, Turkmenistan, KTM
Department of Information Technology
Department of Strategy
Department of Alternative Energies
M. Mete GÜREL
M. Ali KAYA
Levent ÖZKABAN
Murat ULU
Oğuz ERTÜRK
A. PresidentMehmet UYSAL
BOARD OF DIRECTORS
11TPAO Annual Report 2006
Who We Are ?
TPAO, was founded in 1954 by Law No. 6327 with the responsibility of being involved in hydrocarbon exploration, drilling, production, refinery and marketing activities.Until 1983, as an integrated oil company, it was engaged in all the activity fields of oil industry from exploration to production, refinery, marketing and transportation. Today, TPAO is a national oil company involved in merely upstream (exploration, drilling and production) sector.
Where We Operate?
TPAO was structured as having its Headquarter in Ankara and also 3 District Managements in Batman, Thrace and Adıyaman with approximately 5000 employees throughout Turkiye and its branch offices abroad. To ensure energy security supply of the country, TPAO conducts its international activities especially in Caspian Region, North Africa and Middle East. In this context, TPAO carries out its exploration and production activities actively in Azerbaijan, Kazakhstan and Libya. TPAO is also in contact with Syria, Turkmenistan, Georgia, Iraq, Egypt, Ukraine, Indonesia, Russia, Brasil, Algeria and Sudan to initialize new projects.
What We Do?
TPAO has four core activities in the oil sector.
• Exploration, Drilling, Well Completion and Production
• Natural Gas Storage
• Participation in Oil and Natural Gas Pipeline Projects
• Oil Trade and Transportation (TPIC, TPAO Subsidiary)
Turkiye's unique national oil company
12 TPAO Annual Report 2006
Decreasing the sum of invoices we pay to oil and natural gas, and guaranteeing the security of energy supply is Turkiye's “musts”. Parallel to increasing strategic importance of energy, with its activities, our company's strategic importance is also increasing. Turkiye does not have another TPAO.
A S
tate
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nt
fro
m t
he
Pre
sid
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t “Realization of firsts, altruistic working and contribution to our
country's economy” is a brief and plain summary of TPAO's history
over 50 years. TPAO, with the production-investment acceleration
achieved since 2003, has reached goals and numbers conformable
with “its establishment philosophy”, and aimed higher goals.
Global oil production-consumption balance has a small flexibility.
That is the reason for estimated increase in oil prices in the near
future. Increasing import figures and security of energy supply are
two major problems in front of Turkiye. In terms of security of energy
supply, besides East - West / North - South transitive pipelines,
Turkiye shall become a huge energy hub with loading-discharging
terminals, refineries, petrochemistry and LNG facilities. The roles of
our company in both issues until now and in the future are of extreme
importance.
TPAO's activities have bounced by extending in unexplored basins of
our country and especially offshore. We have left the 70.000 bpd
production record achieved in 1990's behind. As it is well known, one
of the indicators of being a big oil company is producing 100.000 bpd.
Now, TPAO is in the position of playing in the league of big oil
companies.
In the last quarter of 2007, TPAO will realize another first in its history
with its production number over 100.000 bpd. Our highest goal is to
meet all Turkiye's oil and natural gas demand by 2023, th“100 anniversary of our Republic”. I have no doubt about TPAO to
reach this goal. Only a powerful and experienced company like TPAO
can open such bright and achievable horizons in front of our country.
We have come to this point we all proud of, with the efforts of our
employees. We will accomplish our “highest goal” altogether, again
with greatest efforts.
In the year 2006, domestic activities, besides offshore, has been
directed to new areas such as Pervari, Silopi, Suriye border, over
thrust zone, northern Diyarbakır, Hatay and Burdur-Isparta. Hopa-1
well at 1.500 meter water depth in Black Sea, completed in January
2006, the first deep water well drilled by TPAO-bp-CHEVRON
partnership has been accomplished at 4.700 meters. This is also a
“first” in all Black Sea. TPAO's seismic survey realized in 2006 is equal
to 1/20 of 3D done all over the world.
In 2004, discovery of natural gas at Ayazlı-1 well in Western Black Sea
by TPAO-TOREADOR-STRATIC partnership and intensive seismic
program in Black Sea between 2004-2006 have made Black Sea the
focus of interest of gigantic oil companies. As a result of this interest,
the joint venture operating agreement was signed between
PETROBRAS and TPAO on August 17, 2006. Through this agreement,
the huge investment program (approx. 350 million USD) in Black Sea
is expected to be realized.
Besides licenses for Eastern Black Sea, negotiations for exploration
licenses for Antalya, Mersin and İskenderun bays in Mediterranean
have commenced with leading foreign oil companies who can
contribute to our oil industry with their know-how, technology and
experiences. Hereby, the amount of foreign capital and investment
brought to country has reached undeniable numbers.
In the last years, TPAO has focused on technology investments.
3D Visualization and Interpretation Center, faster drilling rigs with
higher mobilization ability, high technology equipments increasing
laboratory analysis ability are a few examples of investment in
technology. With enhanced analysis ability and high standards, our
research center had been accepted between world's numerous
“accredited centers”. Now, TPAO with its high technology equipments
and experienced professional staff is one of the world's leading oil
companies.
13TPAO Annual Report 2006
TPAO has added a new block to its existing exploration licenses in
Libya in intensive competitive conditions. In the midst of 2007, serially
drilling of new wells in exploration blocks in this country is planned,
and the possibility of discovering oil in this basin is so high.
Furthermore, TPAO conducts its intensive business development
activities in Middle East, Caspian Region- Russia and South
American-African countries. We have to keep adding new reserves to
existing ones in order to maintain our country's security of supply.
TPAO will continue its activities to acquire new reserves by
purchasing production fields or establishing partnerships.
While TPAO continues its workover services via its subsidiary TPIC, in
Kazakhstan, it also started to offer drilling services in Georgia and
Syria. Fuel-oil export to Iraq has reached 1,4 million tons in 2006.
Decreasing the sum of invoices we pay to oil and natural gas, and
guaranteeing the security of energy supply is Turkiye's “musts”.
Parallel to increasing strategic importance of energy, with its
activities, our company's strategic importance is also increasing.
Turkiye does not have another TPAO. With the help of altruistic efforts
of its employees, TPAO will reach higher goals and keep adding new
years full of achievement to its 53 years successful history.
Mehmet UYSAL
A. Chairman of the Board and A. President
A S
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3The first domestic natural gas storage project with 1,6 billion m
capacity, Silivri natural gas storage plants' provisional acceptance 3has made, and injection of approximately 10 million m natural gas
provided from BOTAŞ to K.Marmara-Değirmenköy gas fields has 3initiated. It has been planned to increase a total of 3 billion m storage
capacity and studies are carried on accordingly.
Natural gas discoveries in Akçakoca, in Western Black Sea have been
prepared for production in a short time period like 3 years. Production
was started in Akçakoca Çayağzı Natural Gas Process Facilities on
May 20, 2007. If world average of 5-8 years to start production in this
kind of projects is considered, altruistic efforts of TPAO employees
can be better understood.
As a result of intensive international activities commenced in early
1990's, today TPAO's international production has exceeded its
domestic production amount. In Caspian Region through consortiums
with international leading oil companies exploration and production
activities in 3 capacious projects are carried out in Azerbaijan, namely
Azeri-Chirag-Guneshli, Shah Deniz and Alov Projects. Production
activities also continue in the fields of Kazakhstan. Oil transported to
Ceyhan through Baku-Tbilisi-Ceyhan (BTC) pipeline, is being loaded
to oil tankers since June 2006.
Azerbaijan Shah Deniz natural gas project has initiated partial
production, and the construction of the South Caucasus Natural Gas
Pipeline through which natural gas will be transported, is completed.
Shah Deniz's second phase production will be transported to Europe
over Turkiye. In this respect, TPAO has made great contributions to
efforts of our country's being the “Energy Hub” goal.
Bo
ard
of
Dir
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ors
14 TPAO Annual Report 2006
Mehmet UYSALA. Chairman of the Board and A. President
Yusuf YAZARMember of the Board
Cumali KINACIMember of the Board
İsmet SALİHOĞLUMember of the Board
Bo
ard
of D
irecto
rs
15TPAO Annual Report 2006
Ge
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Mehmet UYSALA. Chairman of the Board and A. President
M. Mete GÜRELVice President
Murat ALTIPARMAKVice President
Ahmet ADANIRVice President
16 TPAO Annual Report 2006
Ge
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17TPAO Annual Report 2006
Ready to host the world in İstanbul for the th
20 World Petroleum Congress in 2011...
This time İstanbul
TÜRK YEİ
• Natural Energy Corridor• Neighbouring the Oil Pool • A Major Player in the Region • Numerous Business / Cultural / Vacational Opportunities
İSTANBUL
• • Signature of Civilizations / Cultures / Religions• Over 15.000 Five / Four Star Hotel Rooms• Easy / Economical Access• Multiple Congress Venue Options
A Unique Location on Two Continents
İSTANBUL
Literally on two continents!
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20 TPAO Annual Report 2006
In accordance with TPAO's vision, mission and strategies, exploration activities were intensified especially on offshore in 2006 in addition to the Thrace and South Eastern Anatolia.
Nowadays, oil and natural gas as the most strategic energy raw materials, are of crucial importance to meet the world's energy requirement and also they play a significant role on energy security supply of all countries. These strategic energy resources have great effects on national and international politics, security, development, competition, prosperity and political consistency or inconsistency.
Taking into account these realities, TPAO set its strategic objectives as follows;
• To carry out intense exploration and drilling activities on offshore areas in recent years in addition to onshore areas in order to meet our country's increasing oil and gas demand through domestic and also international reserves,
• To take every necessary step for bringing newly discovered fields on production, according to the results of these exploration activities,
• To minimize the production decline observed in the mature oil and natural gas fields by using new technologies and to produce and operate our hydrocarbon reserves in a more efficient and economic manner,
Adana
B.Menderes
Western Black Sea
Western Black Sea (Offshore)
West Toroes (Beydağı Autochtonous)
Darende
Eastern Black Sea (Offshore)
East Toroes (Saimbey Autochtonous)
Edremit Graben
Erzurum
Gediz
South Eastern Anatolia
Haymana
Manavgat
Mudurnu - Göynük
Mut
Muş
Central Black Sea
Central Toroes (Akseki Autochtonous)
Sivas
Tekman
Thrace (Anatolia)
Thrace (Offshore)
Thrace (Onshore)
Tuzgölü
Çankırı
İskenderun (Offshore)
İskenderun (Onshore)
Consession Number
• To broaden exploration activities on domestic and international basins, having probable hydrocarbon reserves.
In accordance with our exploration strategies, besides onshore activities carried out in the Thrace and South Eastern Anatolia, an intensive exploration program was carried out offshore in 2006.
Especially, following Ayazlı gas discovery in the Black Sea in 2004, additional exploration well drilling programs were carried out and drilling operations were performed offshore Akçakoca. In addition, 2D and 3D seismic surveys were realized to expose the hydrocarbon potential onshore lying along the territorial waters of the Black Sea.
Designation of hopeful structures as a result of exploration studies have great importance for TPAO's future exploration objectives. For revealing such potentials by diversifying investment risks and using the latest technology, TPAO aims at accelerating joint venture relationships with foreign oil companies in 2006 as well.
In addition to well known fields, TPAO has continued its exploration and drilling activities to determine hydrocarbon potential of new fields such as Pervari (Siirt), Silopi, Erzurum, Bafra, Ayvalık, Hatay and Yuvaköy (Burdur-Isparta).
Greece
Exploration Regions in Turkiye
Russia
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21TPAO Annual Report 2006
Atwood Southern Cross Semi Sub Drilling Platform A View From the Black Sea
In the last two years, a total of 32.582 km of 2D offshore and 25.419 km of 3D offshore seismic survey were realized. With
evaluation of acquired geophysical data, it is planned to intensify
drilling activities on offshore fields in the coming years. With
these studies, it has been targeted to give a further fillip to the
country's economy by probable oil and natural gas discoveries.
Total amount of offshore seismic surveys realized in the last two
years is much more than performed throughout TPAO's history.
This situation confirms the importance given to offshore
hydrocarbon explorations in recent years.
WE ARE EXPLORING ALL OFFSHORE FIELDS OF TURKIYE
Exploration Activities in the Mediterranean
Farm-out Blocks
Throughout 2006, interpretation studies of 2D seismic lines in the
Antalya, Mersin and Iskenderun Bays were continued. It was
decided to be initiated a farm-out process in 2007 for East-
Mediterranean Offshore and preparations were completed by the
end of 2006. In this scope, negotiations were initiated with the
relevant foreign companies for the offshore blocks in the Antalya,
Mersin and Iskenderun bays.
In 2006, 3.900 km of 2D seismic data was acquired from the east,
south and west side of Cyprus. Interpretation of these data
provided us preliminary information for Syria and Lebanon
offshore, which was planned to be a part of farm-out process in
2007, and also for the area situated in the west of Cyprus.
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22 TPAO Annual Report 2006
Together with great perseverance, enthusiasm and expectations
on onshore, TPAO has given priority to realize exploration, drilling
and production investment programs at onshore fields such as
Silopi, Pervari, Black Sea onshore and around the border of Syria.
The purpose of conducting these activities with determination and
patiently in the following years is a part of TPAO's mission.
Offshore drilling operations are being carried out intensively at
the peak level. Within the scope of TPAO-TOREADOR-STRATIC
joint ventures , 10 offshore wells were drilled in the Western
Black Sea, in 2006.
In 2006, TPAO performed 33 23/30 crew/month geological field 2survey with 6.752 km of areal coverage in 16 different oil
exploration zones by 2 seismic crews, one mobilized and the other
immobilized, at Thrace, Marmara, Aegean, Black Sea,
Mediterranean, Central, Eastern and South Eastern Anatolia
Regions.
Seismic Interpretation Studies
A View from Geological Field Surveys
GEOPHYSICAL FIELD SURVEYS IN 2006
424 km
1.717 km
2824 km
25.419 km
13.836 shots
2D Onshore Seismic
2D Offshore Seismic
3D Onshore Seismic
3D Offshore Seismic
Gravimetric – Magnetic (Onshore)
Vibro Trucks in Field
424824
1.717
5.419
10.000
8.000
6.000
4.000
2.000
0
8141.323
12.841
205958
595
18.024
2004 2005 2006
2(Km, Km )
Seismic Activities
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23TPAO Annual Report 2006
In 2006, TPAO realized most of its drilling activities at Thrace, South Eastern Anatolia Regions and Black Sea offshore as well as new areas. Although drilling of 45 wells were planned in 2006, drilling activities were realized in 71 wells according to good results and developments obtained and drilling of 63 wells were completed.
In 2006, 39.169 m in 26 exploration wells, 31.392 m in 22 wells (10 offshore) joint exploration wells (TPAO's share is 16.758 m), 32.273 m in 23 production wells, totaling to 71 wells with 102.834 m (TPAO's share is 88.200 m) were drilled.
TPAO accelarated its oil and natural gas exploration and drilling activities 3 folds at onshore and offshore fields in the last three years. In addition to the explored basins, TPAO has continued its exploration and drilling activities at the unexplored basins such as Pervari, Silopi, the border of Syria, Diyarbakır, Hatay and Burdur-Isparta and as a result, it has acquired significant data to determine hydrocarbon potential of those fields.
From 1954 to 2006, TPAO drilled a total of 2.395 wells, 37 of which were deviated and 24 of which were horizantal drillings.
DRILLING ACTIVITIES
Drilling Activity
DEEPEST WELLS DRILLED BY TPAO
Based on the wells which were completed during the year.
Drilling Activities
OIL
Oil discoveries were realized in D. Sınırtepe-1 (Nusaybin),D. Karakuş-1 (Adıyaman), G. Şelmo-1 (Batman), Yanarsu-3 (Batman) exploration wells in the South Eastern Anatolia Region and G. Kırtepe-1 (Diyarbakır) joint exploration well drilled by TPAO-PERENCO joint venture. D. Sınırtepe-2 (Nusaybin) appraisal well was completed as “oil well”.
NATURAL GAS
Natural gas discoveries in Batı Sinekli-1, Karatepe-1, İncilibayır-1, Yeşilgöl-O1, Hamitabat-O1 exploration wells were realized in the Thrace Region. Batı Sinekli-O1 appraisal well was completedas”gas wells”.
In addition, B. Velimeşe-1 and Reisdere-1 exploration wells drilled by TPAO-AMITY OIL joint venture in Thrace Region were resulted with natural gas discoveries. D. Adatepe-4 and Adatepe-6 appraisal wells opened jointly by AMITY OIL were completed as “gas wells”.
Natural gas discoveries in Akkaya-1/A and Bayhanlı-1 wells drilled by TPAO-TOREADOR-STRATIC joint venture in the Western Black Sea were realized. Akkaya-2,3, Ayazlı-3/A, D. Ayazlı-1,2, Akçakoca-3 wells were completed as “gas wells”. Hereby in 2006, D. Ayazlı and Akçakoca fields were discovered.
DISCOVERIES
Number
Well Number
Meter
Thousand Meters
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24 TPAO Annual Report 2006
TPAO-TOREADOR
Within the framework of TPAO-TOREADOR Joint Exploration and Development Agreement, approximately 410 thousand barrels of crude oil were produced at the Cendere Field (Adıyaman),in South Eastern Anatolia Region in 2006. Within the scope of field
2development activities, 50 km of 3D seismic survey and interpretation studies were completed, Cendere-21 appraisal well was decided to be drilled and as a result, drilling of the well was realized and the well was completed as "oil well with high water cut".
TPAO-PERENCO
Within the framework of TPAO-NVT PERENCO JV Agreement, oil production from Kastel, Karaali and Yalankoz Fields in South Eastern Anatolia Region have been continuing. Within the area situated in eastern part of License AR/TPAO/3341 covering G.Kırtepe-1 and Hançerli wells in the northern west of Diyarbakır,
th7 Amendment was signed between TPAO and PERENCO on February 20, 2006 and within the specified area, 50 % interest was transferred to PERENCO. In this scope, G. Kırtepe-1 well was drilled and completed as “gas well”.
ONSHORE
JOINT DOMESTIC EXPLORATION, DEVELOPMENT and PRODUCTION ACTIVITIES
Joint Oil Activities with International Companies
TPAO-AMITY OIL
In the joint venture fields with AMITY OIL, studies were continued in 2006. Natural gas discoveries in B. Velimeşe-1 and Reisdere-1 exploration wells drilled by TPAO-AMITY OIL joint venture in Thrace Region were realized. D. Adatepe-4 and Adatepe-6 appraisal wells opened jointly by AMITY OIL were completed as “gas wells”. A total of 8 wells, 6 exploration and 2 appraisal wells were drilled in the joint venture exploration and operating fields with AMITY OIL and re-completion studies were continued in the production fields.
TPAO-CHEVRON-PERENCO
Within the framework of TPAO-CHEVRON Joint Exploration and Development Agreement, activities in Silopi field were continued with the participation of PERENCO as of January 2006. Upon the execution of I. Amendment on November 9, 2006, the partnership turned out to be among TPAO, CHEVRON and PERENCO. Silopi-1 well was started to be drilled in November 2006. In 2007, it has been decided that Cudi-1 well shall be drilled and II. Amendment regarding TPAO's operatorship shall be prepared.
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OFFSHORE
TPAO-PETROBRAS (Kırklareli and Sinop Projects)
Within the scope of Central and Western Black Sea farmout
activities, Joint Exploration and Operating Agreements for
Kırklareli and Sinop subblocks, were signed with PETROBRAS on
August 17, 2006. Following the execution of the agreements,
existing 2D seismic lines were interpreted in 2006. As a result of 2these interpretations, 2.565 km of 3D seismic acquisition were
completed in 2007. Besides, it was also decided to be acquired21.000 km of 3D and 500 km of 2D seismic data from those areas.
TPAO-TOREADOR-STRATIC (Western Black Sea Exploration,
Production and Development Project)
Within the scope of TPAO-TOREADOR-STRATIC joint exploration
project, exploration, production and development activities have
been carried out within 12 miles in II. Region of Western Black Sea
Offshore.
In order to determine the hydrocarbon potential of Ereğli-Alaplı
basin, 1.000 km of high resolution seismic data was acquired and
4 ground surveys were realized. In addition, studies about the
transfer of operatorship planning to be realized in the first
quarter of 2007, were started.
Southern Cross Semi-Submersible Drilling Platform of Atwood
Company was hired for Akçakoca and Gülüç wells due to the water
depth and as a result of drilling of Akçakoca-3 well, natural gas
discovery was realized. Reservoir modeling studies of Akçakoca
field have been continued.
Akçakoca Drillings in Western Black Sea
Location Layout of Akçakoca Production Platforms
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26 TPAO Annual Report 2006
Furthermore, the wells drilled in D. Ayazlı field were included in
the production program and D. Ayazlı Platform after Akkaya and
Ayazlı Platforms was also added to construction and installation
agreement of the tripod production platforms signed with
Momentum Engineering Co.
In 2006, within the scope of development activities of Western
Black Sea Field, the construction of onshore and offshore
pipelines were completed and Akkaya and D. Ayazlı production
tripods were installed to their locations. The construction of
Akçakoca-Çayağzı Natural Gas Process facility was completed
and the first commercial natural gas production was started on
May 20, 2007.
. Ayazlı-1 Installation of D Production Tripod
Çayağzı Natural Gas Process Facility
ACTIVITIES
Completion
Re-Completion
Production String Failures
Log Operations
Cementing
Acidizing
DST Operations
2004
23
79
2.543
175
120
77
28
2005
23
101
3.110
169
150
90
35
2006
34
96
3.431
293
254
78
72
In line with all of these exploration and production activities, Well
Completion Services were supplied with 11 workover and 7
rodpuller totaling to 18 rigs. A total of 34 wells were completed, 96
wells were re-completed and production string failures of 3.431
wells were dispelled in Districts.
Also, the activities in Kazakhstan were carried out with Ideco-11
rig in the name of TPIC.
During the year, 116 Open-Hole, 177 Cased-Hole totaling 293
Logging Operations were realized with 5 Digital, 2 Analog Logging
trucks and 2 Digital Skid Units.
WELL COMPLETION ACTIVITIES
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27TPAO Annual Report 2006
Oil Production Pump
Regional Distribution of Domestic Crude Oil Production in 2006
BATMAN 66 (6.865 Thousand Barrels)
%
ADIYAMAN 33 (3.440 Thousand Barrels)
%
THRACE 1 (140 Thousand Barrels)
%
In 2006, TPAO produced 10.444.830 barrels (1.535.009 tons) of crude oil from its fields, which constituted % 71 of the total crude oil production of Turkiye.
The total of production wells numbered 777 in 2006 up from 752 in the early 2006 with the addition of 25 new and 24 re-completed wells and abandonment of 24 wells.
Significant amount of water is being produced from our oil fields with the produced oil. In 2006, 80.607.915 barrels of water produced with oil was injected into safe zones in different fields by 65 water injection wells.
To conserve water injection capacity of the water injection wells, which is a very important item in continuation of oil production, the necessary operations were applied regularly during the year.
DOMESTIC CRUDE OIL PRODUCTION
Within its policy of keeping the production at the maximum level,
TPAO continued its domestic reserve development and
production activities in 2006. Declining oil production from heavy
oil reservoirs poses a technical challenge. Several reservoir
studies are embarked on to offset the production decline and top
the upside potential.
Thanks to perseverance and efforts of our employee, total
domestic and international oil production reached over
70.000 bpd, in 2006. It is expected to reach the peak level of our
history with 101.000 bpd of oil production through the existing
reserves in 2008.
101.000 bpd96.400 bpd
70.000 bpd
51.000 bpd
40
35
30
25
20
15
10
5
0
2000 2006 2008 20102002 2004
96
82
69
55
41
27
14
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Domestic Oil Production
Domestic Akçakoca BOE
Est. Domestic N.Gas Production of New Wells BOE
Int.-Azerbaijan-ACG
Domestic Natural Gas Production BOE
Est. Domestic Oil Production of New Wells
Int. Kazakhstan-KTM
Int.-Azerbaijan-SD-1 BOE
Domestic and International Hydrocarbon Production by Years
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Batı Raman statistics show that since the carbon dioxide (CO ) 2
injection start up in 1986, cumulative injection into the field has 3reached 7,8 billion m and in order to sustain this amount of
3injection, 6,2 billion m CO was produced from Dodan Field. 2
By the end of 2006, Batı Raman recovered cumulative oil reserves was 93,9 million barrels, where 57,9 million barrels came from CO injection secondary recovery process. In 2006, 478,4 million 2
3 3m of CO gas was injected, 379,2 million m of this amount was re-23produced and 137,4 million m of this produced gas was re-
injected into the reservoir.
Within the scope of water alternating gas injection in low pressure regions of the field where emulsion problem is controllable application, water injection aimed to improve CO sweep 2
efficiency was continued in 2006, in total 368 thousand barrels of water alternating with gas was injected into 12 different wells.
Within the scope of field development program, alternative acid operations were planned in 2006 to 3 lateral wells which the acidizing operation couldn't be performed right after the drilling in 2005 because of the wells' different trajectories. Among those wells, in 1 lateral well, lateral section was entered with tubing and acid was injected to lateral and vertical section and the multilateral well was acidized from the beginning of lateral section with bullhead treatment. The expected production rate was reached with these operations. In 2006, drilling operations of 7 new vertical wells were completed as “in-fill” wells.
In order to extend the life of the project by drying and pressurizing the produced CO gas for re-injection, the installation studies of 2
the second recycle system have been continued.
BATI RAMAN FIELD ENHANCED OIL RECOVERY PROJECT
Raman Field Production Enhancement Project was started in 1994 and operations to increase oil production have been continuing periodically. 12,5 millions barrels of additional oil was produced by means of this project.
3 new wells were drilled in the field to increase oil production in 2006 and well number reached to 229. 7 wells were chosen for pilot polimer gel injection to reduce water-cut and these wells were prepared for the application in 2007. 3 wells were acidized and flow rates of 12 wells were increased. 6 temporarily abandoned wells or wells in rest were put into production by workover operations. As a result, approximately 142 thousand barrels additional oil was produced by these operations, in 2006.
RAMAN FIELD PRODUCTION ENHANCEMENT PROJECT
History of Batı Raman Field Production and Injection
100.000
10.000
1.000
100
Raman Field Production Enhancement Project
8.000
7.000
6.000
5.000
4.000
3.000
2.000
1.000
0
CO /WAG feasibility at the Batı Kozluca Field was investigated 2
through a reservoir study and promising results led to invest for the application. CO injection was initiated in May 2003 by 2
6 injection wells.
By the end of December 2005, cumulative gas injection reached 3116,5 million sm . The injection process is still underway.
In order to increase the effect of CO injection, additional 6 new 2
wells were drilled at the B.Kozluca Field.
BATI KOZLUCA FIELD WATER ALTERNATING GAS (WAG) PROJECT
3C
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B.Kozluca Field Monthly CO Injection Project2
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Within the scheme of Garzan Water Injection Project re-started in 1992 after a long halt since 1983, cumulative water injection through 10 wells reached 26.122.113 barrels in Garzan-B field by the end of 2006, where annual injection was 1.450.350 barrels.
In Garzan-C field, cumulative water injection through 4 wells reached 24.383.573 barrels where total annual injection was 705.226 barrels.
By Garzan Water Injection Project, approximately 22,5 million barrels and 11,3 barrels of additional oil were produced respectively, at the Garzan-B and Garzan-C fields.
GARZAN FIELD WATER INJECTION PROJECT
In 2006, TPAO's cumulative natural gas production was 3412.615.946 sm . The natural gas produced in Thrace Region was
sold to 70 local companies, the gas produced from Çamurlu field
in Batman Region was sold to a regional boarding school and to
two companies in the region. In Adıyaman Region, the released
gas from produced oil was sold to one company.
The oil equivalent of the gas output is 2.427.152 barrels. Thus,
TPAO's cumulative hydrocarbon production was realized as
12.871.982 barrels, by the end of 2006.
DOMESTIC NATURAL GAS PRODUCTION
Regional Distribution of Domestic Natural GasProduction in 2006
BATMAN 2 3(10.158 Thousand sm )
%
ADIYAMAN 1 3
(3.650 Thousand sm )%
THRACE 97 3
(398.808 Thousand sm )%
Hamitabat Gas Gathering Station
K. Marmara Natural Gas Process Facilities
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Within the scope of Natural Gas Storage and Reproduction Services Agreement signed between TPAO and BOTAŞ on July 21,
31999, the total gas storage capacity will be 1,6 billion m of which 3 31,3 billion m in Kuzey Marmara Field and 0,3 billion m in
Değirmenköy Field. According to the agreement signed with BOTAŞ, the natural gas will be injected to the fields with
3maximum rate of 12 million sm / day during summer season and will be re-produced from the fields with maximum rate of 15
3 million sm / day during winter season.
In Kuzey Marmara Field, in addition to previously drilled 5 offshore wells, drillings of the required 6 extended reach wells were completed in the midst of 2004. Taking production rates and evaluations into consideration, it has been observed that the performances of ERD wells are better than expected in terms of storage.
In addition to previously drilled 4 onshore wells in order to use Değirmenköy Field as a natural gas storage field, drilling and test flows of 5 deviated wells were completed by the end of 2003.
The Project Surface Facilities consists of Kuzey Marmara Field, Değirmenköy Field and Shared Facility. Engineering, Procurement, Installation and Commissioning (EPIC) Contract for construction of Surface Facilities was signed between TPAO and Lurgi Oel Gas Chemie GmbH–Fernas Cons. Ltd. Co. Consortium. By February 2007, the facilities were started up and provisional acceptance was realized.
TPAO BROKE NEW GROUND IN TURKIYE WITH KUZEY MARMARA AND DEĞİRMENKÖY FIELDS UNDERGROUND NATURAL GAS STORAGE PROJECT...
Silivri Natural Gas Storage Facilities
Değirmenköy Gathering Point
K. Marmara ERD Wells
Today, TPAO's Primary Business Development Fields for the next 5 years, are determined as Middle East, North Africa and Caspian Region, having two-third of the world's proved oil reserves.
Current Projects Current Projects / New Ventures New Ventures
Since the early 1990's TPAO, with her international activities, has
become one of the important actors in the region. TPAO's
international production in 2006 has exceeded her domestic
production amount. The greatest portion of the international
production is from Azeri-Chirag-Guneshli Project in Azerbaijan.
Upon putting BTC crude oil pipeline into operation in 2006, TPAO's
production in Azerbaijan is expected to increase and reach peak
levels in 2009-2010.
As a shareholder of Shah Deniz Project, TPAO has also started in
March 2007 her first international natural gas production after
completion and putting into operation of SCP natural gas pipeline
in 2006 winter. With this production, TPAO will have started to
meet a part of Turkiye's domestic gas demand from abroad.
TPAO's production is continuing also in her fields in Kazakhstan
and while efficiency achieved during operations carried out with
KazMunayGaz is satisfactory, we have further expectations.
In 2006,in order to increase her reserves, TPAO has investigated
many opportunities in Libya, Kazakhstan, Syria, Brazil and
Ukraine and conducted business development activities by
putting in tenders.
In and beyond 2007, TPAO will exploit her reserves in the regional
geography, and focus on certain countries of which priorities were
determined as a result of global survey conducted throughout
2006, and work harder to increase her reserves. Because of the
necessity of adding new reserves and bringing them online
immediately to achieve the goal of 300.000 bbl/day oil equivalent
production, International activities become more and more
important. TPAO has to add soon new reserves and bring them
online. TPAO, being aware of her strategic importance for
ensuring Turkiye's security of supply, has set its roadmap and
action plan for objectives in and beyond 2010.
Caspian Basin is one of the oldest hydrocarbon reserves in the world and it is also the main source of revenue for Azerbaijan, Kazakhstan, Turkmenistan and Uzbekistan with its great proven reserves.
It is estimated that, Caspian Region holds 4 % of the world oil reserves and 6% of the gas reserves.
In the 1990's, in line with changes and developments, the Caspian Region became an focus of interest for the western countries that are searching and alternative for the Middle East Oil. Being the world's biggest inland sea, Caspian is following the Middle East and Siberia-North Pole Regions with its oil and gas reserves and strategic position for transportation.
Because of the cultural and historical ties, Caspian Region has a special importance and value for Turkiye. Due to its significant role in transportation of energy resources to western markets and settling stability in the Region, Turkiye will increase its strategic and geopolitical power in the field.
CASPIAN REGION
KAZAKHSTAN
TPAO conducts her activities in Kazakhstan through her Joint Venture KazakhTurkMunai (KTM) Ltd. in which TPAO holds a 49 % share and KazMunaiGas has 51 %. The joint company has 1 concession in Aktau Region and 2 in Aktobe Region of the Western Kazakhstan.
In 2006, average production of the joint venture was realized as 2.270 barrels/day in Aktau Region and 4.330 barrels/day in Aktubinsk Region.
Since 1993, TPAO has been carrying out her activities in Kazakhstan and intends to grow its portfolio in this country, the focal point of intense with its oil reserves.
By the end of 2006;
Yearly Crude Oil Production : 2,4 million barrelsCumulative Crude Oil Production : 18,2 million barrelsCrude Oil Reserve : 34,8 million barrels
TPAO IS IN THE EAST COAST OF CASPIAN;
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West Yelemes Field
In Azerbaijan, TPAO is currently a participant of 3 exploration, development and production projects. These are; Azeri-Chirag-Guneshli (ACG, 6,75 %), Shah Deniz (9 %) and Alov (10 %) Projects.
Furthermore, TPAO has a share of 6,53 % in the BTC Co. which was established for carrying out all activities of Baku-Tbilisi-Ceyhan Main Export Crude Oil Pipeline Project and 9 % share in South Caucasus Natural Gas Pipeline Project, which will transport Shah Deniz gas to Turkiye-Georgia border.
AZERI-CHIRAG-GUNESHLI (ACG) PROJECT
In 1994, the Joint Development and Production Sharing Agreement for ACG Project was signed in Baku among the State Oil Company of the Azerbaijan Republic (SOCAR) and the business consortium constituted by the foreign companies.
Throughout the ACG Project having 5,4 billion barrels reserve, 548,4 million barrels crude oil (TPAO share; 43,5 million barrels) was produced to date and daily production which was 353,4 thousand barrels at the end of 2006, is foreseen to reach 1,1 million barrels in 2009.
ACG Project was developed in phases. The first oil from Chirag field (the early oil project) was started to be produced in November 1997. The Phase-1 (Development of the Central Azeri Field) was put into production in February 2005. The production of the Phase-2 (Development of the West and East Azeri Fields) were commenced in January 2006 (West Azeri) and in October 2006 (East Azeri). Further oil production of Phase-3 (Development of Deep Water Guneshli Field) was planned to be started up in 2008.
TPAO IS IN THE CASPIAN SEA; AZERBAIJAN EXP.-PROD.&TRANSPORTATION PROJECTS
Azeri CWP and PDQ Platforms
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Sangachal Terminal DWG / West Chirag / Phase 3 Chirag EOP West Azeri / Phase 2 Central Azeri / Phase 1 East Azeri / Phase 2
Azeri Field Platforms
ACG Project Shareholders
TPAO6,75 %
SOCAR10 %
bp34,14 %
DEVON5,63 %
CHEVRON10,28 %
STATOIL8,56 %
INPEX10 %
EXXONMOBIL8 %
ITOCHU3,92 %
HESS2,72 %
PIPELINE PROJECTS OF TPAO CONTRIBUTING TO THE ENERGY CORRIDOR
In Turkiye, resides in juxtaposition to Middle East and Caspian Regions having the major portion of the world oil reserves, the basis and set up for energy corridor was in-placed by the constructions of BTC and SCP Pipelines. After the determination of the Black Sea potential, the triangle of source in the region hopefully will be completed and this source will flow through the Anatolia axis to reach the market in due time with confidence.In this perspective; TPAO being aware of its responsibility, has been trying to meet the national oil and gas demand. TPAO will continue her efforts towards increasing her activity and control through the East-West Energy Corridor.
BAKU-TBILISI-CEYHAN MAIN EXPORT CRUDE OIL PIPELINE (BTC) PROJECT
Through the BTC Project, the transportation of oil produced in Caspian Region, especially from ACG Project in Azerbaijan to the world markets, in a safe, secure and environment friendly way is targeted.
Within the scope of the Project, an approximately 1.768 km long pipeline with 42”-46”-34” diameters and necessary facilities with a nominal capacity of 50 million tons/year, starting from Baku-Azerbaijan passing by Tbilisi-Georgia and ending at Ceyhan-Turkiye, has been constructed. The physical construction was started in April 2003 in all three countries and was completed by end of May 2007 then first tanker carrying Azeri oil (part of which was TPAO's share of ACG oil) started loading in early June 2006. On July 13, 2006 the inauguration of the BTC pipeline was realized in Ceyhan terminal.
thBy 6 of April 2007 a total of 130 tankers carrying about 100 million barrels of Azeri oil have sailed from BTC Ceyhan Marine Terminal. Project is expected to reach its nominal capacity of 1 million bbl / day in April 2007.
BTC Project Shareholders
TPBTC/TPAO6,53 %
SOCAR25 %
bp30,10 %
CHEVRON8,90 %
STATOIL8,71 %
INPEX2,50 %
CONOCOPHILLIPS2,50 %
ITOCHU3,40 %
HESS2,36 %
TOTAL5 %
ENI5 %
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Tanker Loading at Ceyhan
Inauguration of the BTCThe
SHAH DENIZ PROJECT
The Shah Deniz Structure is in the offshore South Caspian Sea, 70 km southeast of Baku and 70 km southwest of Azeri-Chirag-Guneshli field. The concession has an areal coverage of
2approximately 860 km .
In 2001, the Minimum Obligatory Work Program of the Exploration and the Extended Exploration Periods were completed. The Sales and Purchasing Agreement (SPA) between BOTAŞ and SOCAR for the discovered natural gas and Intergovernmental Agreement between Turkiye and Georgia were signed.
According to the SPA, 6,6 bcm / year of natural gas (at plato level) will be delivered to Turkiye for 15 years. Project will also supply gas to Azerbaijan, Georgia and to BTC as fuel. The construction has been started with the decision taken for Shah Deniz Stage-1 field development and construction in 2003.
For the existing case, there are four production wells. They were tied back to the drilling and production platform TPG500 and their well completion operations are still continuing.
The Overall realization ratio in the Project, having 625 bcm natural gas and 750 million barrels condensate reserves. Continuous production from the project using one well is planned to be initiated in the first quarter of 2007.
For Stage-2, construction decision is estimated to be taken in 2009 and the first gas delivery is in 2012.
Shah Deniz Project Shareholders
TPOC/TPAO9 %
bp 25,50 %
STATOIL 25,50 %
AzSD Ltd. 10 %
TOTAL 10 %
LUKOIL 10 %
NICO 10 %
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Shah Deniz
SOUTH CAUCASUS NATURAL GAS PIPELINE (SCP) PROJECT
With the SCP Project, the transportation of Shah Deniz natural gas to Georgian-Turkish border is planned. The SCP passing through the same corridor with BTC is about 690 km in length and 42” in diameter. The pipeline has a capacity of transporting 8,1 bcm/year of natural gas to Turkish border with one compressor station in Sangachal in line with the terms of AGSC-BOTAŞ Sales and Purchasing Agreement (SPA). However, this capacity will be able to be expanded to 22 bcm / year.
After commencement of construction of the pipeline physically in 2004, construction activities have been completed, and pipeline
th has been ready to transport gas since 26 November 2006. In parallel with production activities of Shah Deniz, the pipeline will begin continuous operations. Project has a potential to transport the gas that will be produced from the Caspian Region in the future to Europe via Turkiye.
TPAO's total production share of current assets, (KTM, ACG and SD Projects) is expected to be 18,4 million barrels of oil equivalent of a yearly average of 50.500 b/d during 2007.
ALOV PROJECT
Alov Exploration Project covers the Araz-Alov-Sharg prospective
structures in the Middle of the Southern Caspian Sea, acquiring
385 bcm of natural gas and 5 billion barrels of oil.
EDPSA was signed in 1998 and TPAO joined to the Project by an
“Agreement on Participating Interest to be Vested” on
July 29, 1998. For the Alov Project, the minimum contractual 2commitments are 1.400 km of 3D seismic survey and drilling of
three exploration wells for the three-year exploration period. The
drilling of first exploration well is waiting for the determination of
status of Caspian Sea and also for rig slot availability afterwards.
Alov Project Shareholders
TPOC / TPAO10 %
SOCAR OIL AFFILIATE
40 %
STATOIL 15 %
bp 15 %
ENCANA 5 %
EXXONMOBIL 15 %
SCP Project Shareholders
TPSCP/TPAO9 %
bp25,50 %
STATOIL25,50 %
AzSCP Ltd.10 %
TOTAL10 %
LUKOIL10 %
NICO10 %
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Sangachal Terminal
LIBYA
Within the framework of TPAO's foreign investment strategies,
Libya, with her rich oil and natural gas potentials, has a significant
importance as a target country. TPAO's activities in Libya have
been continuing in three exploration concessions.
Block NC188-NC189 Exploration Project
An Exploration and Production Sharing Agreement (EPSA),
signed between Turkish Petroleum Overseas Company (TPOC)
and the National Oil Company of Libya (NOC) on Blocks NC188
(Ghadames Basin) and NC189 (Sirte Basin) came into effect in
2000. The Agreement calls for exploration period of 5 years and
commitments of drilling 5 exploration wells and seismic
acquisitions in the Blocks mentioned above.
TPOC opened a branch Office in Libya and commenced her
activities after the ratification of EPSA. Furthermore, as a
common practice in exploration activities for reducing risk, TPOC
signed a partnership agreement with ONGC-Videsh Ltd. (OVL), a
subsidiary of the Indian National Oil Company (ONGC). The
agreement came into effect in 2003. The participating interests of
parties are 51 % for TPOC (operator) and 49 % for OVL.
The existing well and reprocessed seismic data in both Blocks
were evaluated and new seismic acquisition surveys and related
data processing were carried out in 2002. Following the
interpretation of new seismic data, 2 exploration wells (A1-NC188
and B1-NC 188) were drilled in 2004 to determine the
hydrocarbon potential of the prospects in the concession NC 188.
In 2005, seismic data was re-processed to determine the
hydrocarbon potential in Sirte Basin (NC189 Block) and
geological, geophysical and pre-drilling activities were
completed for scheduled wells.
Three-year extension of the exploration period starting from June
12, 2006 was granted by NOC in order to complete the remaining
exploration commitments of drilling three wells in the NC189
concession. TPOC expedited its activities to drill the remaining
three exploration wells.
Block 147/3-4 Exploration Project
In “2005 Exploration Bid Round” organized by NOC, Block 147/3-4
in the Murzuq Basin was awarded to TPOC.
EPSA was signed between NOC and TPOC and came into effect in
December 2005. Minimum exploration commitment for the Block
consists of drilling two exploration wells and acquisition of 2D and
3D seismic data.
The seismic data processing of 2D lines and interpretation were
completed. Technical studies to assess the hydrocarbon potential
and prospectivity of the block were continued in 2006.
Block 147/3-4 Activity
NIGER
ALGERIA
TUNUSIA
EGYPT
SUDANCHAD
MEDITERRANEAN SEA
LIBYA
Libya
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Block 147/3-4 Activity
NEW VENTURES
THE MIDDLE EAST Due to the vital importance of crude oil, as a raw material for Industrialization, Middle East is always on the agenda with its oil reserves.
Middle East has approximately 62 % (Saudi Arabia 25 %, Iraq 11 %, United Arab Emirates 9 %, Kuwait 9 %, Iran 8,5 %) of the world oil reserves.
SYRIA
TPAO is continuing to negotiate for oil and gas exploration-development and production investments in Syria.
In this scope, the Memorandum of Understanding (MOU) was signed between TPAO and Syrian National Oil Company (Syrian Petroleum Company) in Damascus on November 9, 2005.
In accordance with the terms of this MOU, a joint company is planned to be established to develop and carry out exploration-production projects at designated concessions.
IRAQ
TPAO has been continuing her contacts with the Ministry of Oil of Iraq since 1994, for exploration and production opportunities in Iraq. TPAO has continued business development activities with Iraqi Ministry of Oil and foreign oil companies but no important progress has been recorded in this respect due to the political uncertainties and security issues that have been prevailing since March, 2003.
Iraq
Syria
Turkmenistan
TURKMENISTAN
TPAO has been carrying out oil and natural gas exploration and development studies on onshore and offshore areas of Turkmenistan, since 1993.
In 2005, parallel to the latest developments in Turkmenistan, TPAO's strategies were uploaded as participation in the Projects of re-developed oil fields and participation in Trans-Caspian Gas pipeline in case the Project comes into agenda.
AFGHANISTAN
TPAO's technical studies are continuing for exploration, development and production of oil and natural gas.
NORTH AFRICA
The continent of Africa has been known as the third largest oil field in the world, behind the Middle East and America. Africa's oil production accounts for approximately 11 % of the world. Behind North Africa (Libya and Algeria) Western Africa is also rich in oil with her 139 billion barrels proven oil reserves. More than 60 % of oil is produced in offshore fields in the continent of Africa. Oil rich countries are; Nigeria (2,5 million barrels/day), Angola (1 million barrels/day), Congo Brazzavilla (280 thousand barrels/day), Guinea (270 thousand barrels/day), Gabon (270 thousand barrels/day).
Besides her oil reserves, Africa is also fourth largest gas region in the world behind the Middle East, Russia and Far East. Except the natural gas rich fields in the Northern Africa (Libya, Algeria and Egypt) the natural gas reserve of the South Africa is estimated as
3 3around 12 trillion m , of which 7 trillion m in Nigeria and 5 trillion 3m in other countries.
OTHER COUNTRIES
In addition to the activities mentioned above, TPAO has been continuing to search and negotiate for business opportunities in other hydrocarbon rich regions such as Russian Federation, Ukraine, Algeria, Egypt, Indonesia, Sudan, West Africa and South America.
Inte
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38 TPAO Annual Report 2006
Through the latest technologies, applied in oil industry, TPAO has been developing its strategy in line with
competition in the market and continuing its activities in an efficient, cost effective and time saving
manner.
Within the scope of using advanced technology, 240 active
channel 2D seismic recording system was updated to 1440 active
channel 3D seismic recording system. Through this system, shot 2number per km was reduced and also cost reduction and time
savings were obtained. In parallel to accelerated exploration
activities, data processing capacity of seismic crews was
expended through updating technology in Seismic Data Process
Center. 3D Visualisation and Interpretation Center was put into operation
in May 2005 in order to minimize the risk factor in hydrocarbon
exploration and to carry out integrated and more effective seismic
data surveys in the interpretation systems through the goal of
raising the discovery success ratio in new oil fields. Data Bank
installation studies were initiated for an easy access, sharing and
protection of data used for exploration activities. The field geology
crews were equipped with GPS and tablet PC in order to study in
an efficient and effective way.
INNOVATIONS IN TECHNOLOGY
Inn
ova
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ns
in T
ech
no
log
y
TPAO is continuing its drilling activities in Western Black Sea
within the context of joint exploration and development projects
by intensifying its exploration activities on offshore.
Within the framework of joint activities with bp, TPAO completed
the first deep water drilling in the Eastern Black Sea and TPAO
gained the first experience in deep water drilling technology. It is
trying to determine the offshore hydrocarbon potential of the
Black Sea and create adding values to the national economy
through new oil discoveries.
DEEP WATER DRILLING TECHNOLOGY
For providing mobilization, cost reduction, time saving and faster
drilling, 800 HP MR-7000 mobile rig with the drilling capacity of
2.500 meters was delivered on behalf of TPAO in April 2007, 1.500
HP AC Drive electrical onshore rig with the drilling capacity of
5.000 meters will be delivered to TPAO in 2007.
Besides, within the scope of F-320/3 Rig Upgrading Program ;
main equipments of Mast, Substructures, Electrical Drawworks
and Rotary Table were upgraded to 2000 HP AC Drive Electrical
Rig with the drilling capacity of 6.500 meters was produced by
National Oilwell Varco (USA) .
TPAO RIGS ARE BEING UPDATED
SoilMec MR 7000 Mobile Drilling Rig
40 TPAO Annual Report 2006
Atwood Southern Cross Semi Sub Drilling Platform
3D Visualisation and Interpretation Center
Inn
ova
tion
s in T
ech
no
log
y
LOGIQ System and Insite Tools were developed to collect more
data from the formations through implementation of new
technology. Through LOGIQ system, well logs can be monitored
over the satellite and interpreted simultaneously. This system
facilitates obtaining more data and fast flow of these data to IQ
system. Besides, LOGIQ, operating under windows based system,
is an easy system for the end users.
LOGIQ SYSTEM AND INSITE TOOLS
All oil and natural gas fields are monitorized actively by multi-
disciplinary teams using special softwares which have regularly
updated digital database and by broad communication network
system created among center and fields.
By using reservoir modelling, petrophysical rock properties such
as porosity and permeability distribution of reservoir can be
monitored easily by simulator. Besides, pressure and
gas/oil/water saturation changes by production can be observed
thus regions in the field that do not drained can be determined.
Using different production scenarios best case can be obtained to
get highest recovery factor for the field.
By means of reservoir and well analysis software, production
performance of both field and each well can be observed
historically. Well cross sections, digital logs, well completion
operations and well performance can be monitored
simultaneously. Besides, future production forecasts can be
realized by “Decline Curve Analysis”.
Production estimation of new drilled wells can be done by
evaluating well test data by using advanced software.
Reservoir parameters such as effective porosity, water saturation
which are obtained from log interpretations are the most
important parameters in reserve calculations. For this purpose,
digital log data of the wells are processed with advanced software
and parameters needed for calculations are obtained.
As a result of these technological and scientific studies, new
production well locations, productive zones in a reservoir,
convenient oil-gas recovery methods can be easily determined
and current oil-gas technologies can be re-evaluated.
DEVELOPMENT TECHNOLOGY OF OIL FIELDS
LOGIQ System
Geological Modeling & Reservoir Simulation
Field & Well Monitorizing
41TPAO Annual Report 2006
In accordance with the policy of following innovations in
technology, TPAO enhanced its technology investments on
exploration, drilling, well completion, production and research
center activities. Especially, TPAO Research Center increased its
analyzing ability with advanced technology. The knowledge power
gained through RD studies and new technology is reflected to the
exploration and production activities and also to laboratory
projects.
New Technologies of Research Center;
•Isotope Geochemistry,
•Digital Core Imaging Analyses,
•Determination of Source Rock Kinetic Parameters,
•Surface Geochemical Prospection-Soil Gas Analyses,
•SEM with Low Vacuum,
•High Pressure Mercury Injection Capillary Pressure
Measurement System at Reservoir Condition,
•GC Analysis to Detemine Oxygen Compounds in Gasoline,
•GC Analysis for PAH (Poly Aromatic Hydrocarbons)
Measurements,
•Computer-Aided Mud-Cement Systems,
•Mobile Laboratory in the Field and the Well Site
RESEARCH & DEVELOPMENT TECHNOLOGIES
Soil Gas Analyses
Mobile Laboratory near the Well Site
Low Vacuum Scanning Electron Microscopy and IXRF EDS 2004 System
42 TPAO Annual Report 2006
Inn
ova
tio
ns
in T
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log
y
C1- C4 Gas Chromatography Analyses
Research Center provides support for hydrocarbon exploration, drilling, well completion, production and environmental activities through its well-trained and experienced staff and state of art laboratories equipped with modern analytical instruments.
TPAO Research Center, established in 1974, has a capacity to
perform over 400 different types of analyses and tests which are
obtained from 27 different laboratories equipped with modern
analytical instruments. Research and development projects,
applied projects, consulting services and technical training
programs are carried out by its 75 well-trained and experienced
staff in the Research Center.
During 2006, in Research Center, in collaboration with
Exploration (14), Production (6) and International Projects (2)
departments, totally 22 projects were performed; within the
department 15 projects were carried out and 2 university projects
were supported. Within the scope of these projects; 29.085
analyses and 9.327 quality control tests were conducted in the
Geology and Engineering Laboratories. The overall number of
tests and analyses is 38.412. Concerning these activities, 98
reports were prepared. Throughout the year, totally 1.962
man/day of field engineering services and field works were
carried out in domestic and international operations of TPAO.
Production based projects, that were carried out in 2006, are as
follows;
• Enhanced Oil Recovery Project at the Batı Raman Field,
• Water Shut-off Project at the Raman Field,
• Quality of Injection Waters in Production Fields Project.
Re
sea
rch
Ce
nte
r
Surface Geochemical Prospecting Studies in Murzuq Basin- Libya
Wellsite Studies
44 TPAO Annual Report 2006
It was witnessed to the field survey studies in Salt Lake,
dominantly on surface geochemical prospecting studies and
contributed to the interpretation studies with 32 man / day. Some
of these exploration based projects are as follows;
•The Origin and Source Rock Correlation of Thrace Basin Gases
(Isotope Geochemistry),
•District X Prospect Evaluation Project
•South Eastern Anatolia Eocene Tectonostratigraphy Project,
•Western Black Sea Offshore Project,
•Eastern Anatolia Maykop Project,
•Petroleum Geochemistry of South Eastern Anatolia Asphaltite
and Seepages Project,
•Sedimentology, Reservoir Characterization and Reservoir
Geochemistry in the Raman Oil Field,
•TPOC Libya Murzuq Basin Exploration Project.
•CO Storage in Geological Environment,2
•Underground Natural Gas Storage Project.
During 2006, necessary tasks related to IWCF Membership and
being an Accredited Assessment Center were performed.
Twelve Well Control Courses were arranged for 110 personnel
consisting of engineers and technicians from TPAO and other
technical staff from domestic and international companies. 46
IWCF and 109 TPAO Well Control Certificates were granted to the
successful trainees in 2006.
Re
sea
rch C
en
ter
Totally 329 trainees, from both TPAO and other companies,
participated in technical trainings, in 12 different subjects at
TPAO Research Center.
RESEARCH CENTER LABORATORY SERVICES
In the Geology Laboratories, analyses were performed mostly
relating with biostratigraphy (micropaleontology, nannoplankton
and palynology), sedimentology (petrography, clay mineralogy,
scanning electron microscope-SEM, lithology, sequence
stratigraphy and reservoir evaluation), geochemistry (gas, oil,
source rock, organic petrography, oil and gas origins, isotope
analyses, kinetic parameters, oil-oil and oil-source rock
correlations, reservoir geochemistry, mathematical modeling,
evidence analyses, oil systems and potential) subjects.
The analyses performed in Petroleum and Natural Gas
Engineering Laboratories cover drilling technology (drilling fluid
and cement program, additives quality control, rock mechanics
and simulation of hydraulic and acid fracturing well bore
stability), production technology (corrosion and scale control,
injection water quality, fuel oil analyses biodiesel production) and
reservoir engineering (basic and special core analyses, reservoir
fluids (PVT) analysis and EOR) subjects.
LABORATORY ACCREDITATION OF THE
RESEARCH CENTER LABORATORIES ACCORDING
TO TS EN ISO/IEC 17025:2005 “GENERAL
REQUIREMENTS FOR THE COMPETENCE OF
CALIBRATION AND TESTING LABORATORIES”
In order to register TPAO Research Center Laboratories as a
dependable, contemporary arbitrator laboratory at an
international level, accreditation studies in accordance with the
TS EN ISO 17025 “General Requirements for the Competence of
Calibration and Testing Laboratories” were completed.
In this study, 11 procedures, 15 instructions, quality hand book,
organization hand book and the other documents were also
prepared in the first half of 2005 and submitted to Turkish
Accreditation Agency (TURKAK). Accreditation of Research
Center Laboratories has been approved by TURKAK Board on
October 16, 2006 for a total of 28 analysis on the following titles;
•Petroleum Products Analyses,
•Natural Gas Analyses,
•Water Analyses,
•Drilling Fluids Additives Analyses,
•SEM/EDS and Clay Minerals Analyses.
X-Ray Difraction Unit
Palynological Analyses
itation CertificateAccred
45TPAO Annual Report 2006
C H A R A C T E R I Z A T I O N A N D S O U R C E C O R R E L A T I O N O F T H R A C E B A S I N H Y D R O C A R B O N S B Y S T A B L E I S O T O P E GEOCHEMISTRY
Research Center newly equipped with “Gas Chromatography Isotope Ratio Mass Spectrometer” has contributed to determine the origins and to understand the maturities of the gas, oil and condensate samples discovered in Thrace Basin up to date. Besides, in the light of these data, classification and hydrocarbon-source rock correlation studies were initialized. In the following years, significant improvements, especially in gas exploration, are expected to be obtained through the stable isotope data, produced in the Research Center Laboratories.
T H E R M O D Y N A M I C , K I N E T I C A N D G A S PRODUCTION LABORATORY STUDIES FOR GAS H Y D R A T E S F O R M A T I O N / D I S S O C I A T I O N PROJECT
Nowadays, the gas hydrates, also known as “methane ice”, with their widespread presence and also as the future potential for natural gas / methane source, is one of the study areas in R&D activities.
In the world, the gas hydrate studies have two dimensions as the determination of the extension of gas hydrate beds and the research studies concerning production of methane from these beds.
Within this framework, “The Laboratory Studies of Gas Hydrate Formation/Dissociation, Thermodynamics, Kinetics and Gas Hydrate Production” project has been initialized to form a background for future production from gas hydrate beds in the Black Sea. This project is carried out in collaboration with METU.
High Pressure High Temperature Rheometer
Oil Products Analyses
46 TPAO Annual Report 2006
Re
sea
rch
Ce
nte
r
Capillary Pressure and Resistivity Tests at Reservoir Conditions
Hu
ma
n R
eso
urc
es
Visit of Orientation Team to Turkiye's First Oil Production Well
Pe
rso
n
4.000
3.500
3.000
2.500
2.000
1.500
1.000
500
0General Directorate Batman Adıyaman Thrace TOTAL
1.1461.463
650
418
3.677
Number of Staff in 2006
On The Job Training358, 15 %
International Training111, 5 %
Congress, Conf., Sem.72, 3 %
Computer Training74, 3 %
Individual Development116, 5 %
Professional Training1.647, 69 %
Training Activities in 2006
48 TPAO Annual Report 2006
TPAO has been carrying out her activities successfully with her dedicated employees, turning the experiences of 50 years of her existence into a source of reference and knowledge, and also by strong organizational structure, advanced technology and experiences in the international projects.
HUMAN RESOURCES
It's TPAO's belief that success can only be realized through highly motivated individuals and experts. Based on this belief, TPAO continues its studies for the establishment of a dynamic performance system within the context of Corporate Source Management which will carry the Company to dynamic structure and increase the efficiency by evaluating the competences in line with our vision, mission and values and provide the staff with;
• Success on job,• Attitude at work,• Contributions to the success of the organization,• Share of responsibility,• Training and development,
PERFORMANCE SYSTEM
TPAO's staff is very well-informed and experienced; they have many ethical principles, such as merit, effectiveness, team spirit, communication, self-efficiency for coping with the changes and responsibility. These principles will carry TPAO to great successes.
STAFF PROFILE
TPAO, strongly believing that success can only be realized through highly motivated individuals and experts, continues its studies for the establishment of a dynamic performance system within the context of Corporate Source Management.
All corporations need well-equipped employees in order to reach strategic goals and objectives. The aim of training and self-development activities is equipping the employees with knowledge and abilities so they can contribute to companies goals. Within this scope, in 2006, training and development courses have been accelerated for the staff to follow the rapidly changing knowledge and developing technology.
In this context, 2.267 staff in the country and 111 staff abroad participated in various training programs and so, the number of trained staff was totaled to 2.378.
In 2006, technical training courses were accelerated within the scope of Petroleum Academy and orientation trainings were also arranged for the new employee to provide them a new opportunity to familiarize TPAO's culture, working system and activities.
Within the context of this program, new employees in various departments, visited oil fields in the District Managements, carried out on-site inspection and had opportunities to observe the contributions of TPAO to the social life in the region.
CONTINUOUS TRAINING
TPAO believes that self sacrified studies and high performance of employees depend on their life quality. Based on this belief, various social activities have been arranged in order to increase motivation of the employees. Furthermore, it provides communication required for the company culture.
In this context, social activities such as football, bowling, dart, billiard and table tennis tournaments, Children and Spring Festival and excursions were arranged.
Besides, TPAO offered holiday opportunities for the employees in her own Social Complex in Güllük / Bodrum-Muğla.
LIFE QUALITY OF EMPLOYEES
Today, being aware of health, safety and environmental protection means development for the Societies and superiority in competition for the companies.
Care should be taken at maximum level about human health and
life due to industrialization, being means of happiness and social
welfare but bringing various risks such as environmental
pollution, occupational accidents, professional illnesses and
economic damages. Thus, the companies attaching more
importance to employees' health, safety and taking necessary
precautions against environmental and occupational accidents
are always ahead of their competitors in the market.
Considering the protection of the human health and natural
resources among the most significant values, TPAO has
determined its safety and environmental protection policy within
the framework of the below-stated principles as an indispensable
part of all its activities;
HEALTH, SAFETY AND ENVIRONMENTAL PROTECTION
He
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Sa
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50 TPAO Annual Report 2006
to our employees in the future.Our most significant values are to create a healthy and secure working environment and to leave a clean, safe environment
As Occupational Safety is an indispensable priority of all affairs
and being the inseparable part of the work, Corporation has had
significant contributions to the national economy and paid more
attention to the health of personnel and of those likely to be
affected by relevant activities. With the conscious of the fact that
the happiness of employee is the first priority, it aims at supplying
a secure work place, taking the necessary precautions against
potential hazards and risks thus trying to eliminate them
completely.
As an indication of attaching importance to our personnel, Health
Clinic, where routine health checks were executed, was modified
and a modern laboratory where various analyses were carried
out, a Dental Unit and a Health Emergency Intervention Unit were
added to the system.
Within the year, preventive measures to the occupational
accidents were emphasized and with the principle of developing
qualified personnel, 417 personnel were trained on the topics of
General Occupational Safety Rules, First Aid, Survival at Sea, Fire
Protection and Environmental Protection. The number of
Occupational Accidents was significantly reduced through the
trainings.
HEALTH AND SAFETY
Firefighting Drill
Health Unit
Collection of Spilled Oil by Skimmer
He
alth
, Sa
fety a
nd
En
viron
me
nta
l Pro
tectio
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51TPAO Annual Report 2006
• Human and health factor, first priority,
• Sustainable improvement through a developing performance,
• Efficient use of resources,
• An effective waste management,
• Respect to environmental values,
• Compliance with legislation,
• Preparation of urgent intervention response procedures,
• Training of employee to develop environmental consciousness,
• Effective communication among employee and society.
On the Way Through Platform
Health, Safety and Environmental Protection activities have been
carried out within the scope of Kuzey Marmara Underground
Natural Gas Storage Project, TPAO - TOREADOR Western Black
Sea Offshore Project, TPAO - bp Eastern Black Sea Offshore
Project, ACG Waste Water Process Project, TPIC-Frontera
Drilling Project realized in Georgia.
Bioremediation process is applied to remove the hazardous
wastes arising from field activities. Then, cleaning method is
carried out to prevent the formation of other chemical wastes.
TPAO concentrated on implementation studies of bioremediation
in 2006. Work on preparation of Environmental Protection Rules
regarding Corporation activities and updating of disposal
management guidelines was continued.
Besides, work on purification of waste water arising from TPAO's
oil and natural gas production activities and environmental
rehabilitation of drilling locations is carried out with great care
and attention.
ENVIRONMENTAL PROTECTION
For preparation of Environmental Impact Assessment (EIA)
reports by TPAO's experts, Class 'A' Certificate was taken from
the Ministry of Environment and Forest in the year 2000 and it has
been updated as per the latest “EIA Sufficiency Communique” in
2004.
In 2006, health, safety and environmental protection studies were
coordinated for TPAO - bp Eastern Black Sea Project, TPAO -
TOREADOR - STRATIC Western Black Sea Offshore Project and
ACG Project. EIA Report for Western Black Sea Offshore Project
was received. Other EIA Projects of TPAO are as follows:
•Şelmo-Batman Crude Oil Pipeline (EIA Preliminary Research),
•Mardin-MARSAN Natural Gas Pipeline,
•K. Marmara and Çerkezköy Ak Enerji Connections to
Değirmenköy - Trakya Glass Industry Natural Gas Pipeline,
• Eskitaş Oil Production Project,
• Kuzey Marmara and Değirmenköy Underground Natural Gas
Storage Project.
ENVIRONMENTAL IMPACT ASSESSMENT (EIA)
Before Bioremediation
After Bioremediation
He
alt
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52 TPAO Annual Report 2006
Before Bioremediation
SEISMIC DATA ACQUISITION
Seismic Data Acquisition has been carried out by Geophysical
Operations Department with two Seismic Crews. Seismic Crew-1
having 5 M26 HD/623 B P type vibrators enabled GPS system is
operated by “Vibroseis” method.
Seismic Crew-1 has been operating in 3D seismic data
acquisitions with Sercel-408 UL type recorder and it has 12
receiver lines, 120 receiver channels, totally 1.440 active recorder
channel system.
In topographic surveys, Leica GPS 530 system is being used and
required data quality control and preplanning studies are carried
out by EGHAS software.
Seismic Crew-2 is using “Dynamite” as an explosive energy
source. 13 Iveco 6x6 Truck Mounted Drilling Rigs are being used
to locate the energy sources.
Sercel SN-388 type recorder is being used by Seismic Crew-2.
This crew generally operates 2D and 3D Seismic data
acquisitions. For 3D acquisitions, the crew can operate up to 6
receiver lines. This system is planned to be upgraded and
replaced by Sercel-408 XL in 2007.
Seismic Crew-2 has been equipped with Leica GPS system 500 as
topographic instruments, while quality control and preplanning
studies are performed by EGHAS software.
To increase the production rate, quality control procedures have
been applied strongly by both seismic crews.
Furthermore, seismic field design, topographic control, recorder
control and static calculation studies are performed within the
scope of Seismic Data Acquisition Services.
EXPLORATION SERVICES
54
Solving today's oil sector problems, requires innovative technology and integration of many disciplines. TPAO offer services that satisfy your needs by means of the integrated technologies.
Vibro Trucks in Field
Gravimetric and Magnetic Surveys
Non-Seismic Data Acquisition surveys are carried out by one
Gravity and Magnetic Acquisition Crew at Geophysical Operations
Services.
Seismic Data Processing Systems
2D and 3D onshore and offshore data processing have been
realized by Focus and Geodepth softwares pertaining to Pradigm
Company. Also, Thrustline, Long Offset Seismic Software of
Geotomo Company has been used to understand the overlapping
tectonics in South Eastern Anatolia.
NON-SEISMIC DATA ACQUISITION
•2D/3D Conventional Seismic Process,•Refraction Static (Linear and Non-Linear Tomographic Analysis),•Signal Process,•Improvement in Signal to Noise Ratio,•Multiple Attenuation (RADON/SRMA),•DMO,•Pre Stack Time Migration, •2D/3D Pre Stack Depth Migration,•Post Stack Depth Migration,•2D/3D AVO, •VSP Process,•Long Offset Seismic Line Process (2D PSTM and PSDM),•Seismic Modeling.
SEISMIC PROCESS APPLICATIONS
TPAO Annual Report 2006
TP
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Seismic Recording Instruments
55
Magnetometer
TPAO Annual Report 2006
For seismic, well and geological data interpretations, UNIX based
softwares of Landmark and Schlumberger companies have been
used. These softwares are used for advanced seismic
interpretation, mapping and interpretation of well and geological
data. Moreover, reservoir modeling and studies related to
petrophysics are performed.
By using PC-based softwares, seismic, well and geological data
interpretation studies are performed and also, Geographical
Information Systems (GIS) are implemented. Digitalizing maps
and transferring them to GIS are performed with the highest
quality.
Besides, remote sensing analysis has been carried out for
surface geology applications and correction of existing geological
maps.
INTERPRETATION SYSTEMS
TP
AO
Se
rvices
3D Visualisation and Interpretation Center
Landmark and Charisma, Geological-Geophysical Interpretation Systems
GIS AND REMOTE SENSING APPLICATIONS
Through the goal of carrying out remote sensing studies and designing the required maps, ESRI products have been used. Also, ARBIS Project, which was structurally completed in 2005, has been implemented for displaying maps, locations, well and seismic data on PC.
3D VISUALISATION AND INTERPRETATION CENTER
3D Visualisation and Interpretation Center has been used at TPAO in order to minimize the risk factor in hydrocarbon exploration and to carry out integrated and more effective seismic data surveys in the interpretation systems through the goal of raising the discovery success ratio in new oil fields.
DATA BANK
By installing the necessary hardware and software, the project which enables the management and storage of all digital seismic data, well logs and other relevant data and also the archived documents of Exploration Department, in a single and secure environment, was completed in 2006. Training related to the project was accomplished and preparation studies for data transfer and loading are still in progress.
In 2006, technical services, analyses, projects, consulting and training programs were performed on due basis requested by universities, industrial foundations, domestic and foreign oil companies operating at home and abroad.
Mining analyses were carried out under the organization of General Directorate of Mining Affairs, on behalf of the private mining companies, environmental analyses and consulting services were also realized for the courts of justice. Furthermore, various analyses were performed for the crude oil transported by BOTAŞ.
Besides, the experts from the Engineering Division of Research Center carried out engineering and consulting field services in Turkey and abroad. In this respect, drilling fluid services were provided for 19 wells of TPAO, 10 offshore wells of TPAO - TOREADOR Western Black Sea Project, 2 wells drilled by MERTY Company, 1 well drilled by TPIC in Syria and also, 1 well drilled by HEMA Company.
Cement slurry compositions were designed for casing cementing of 44 TPAO wells, 10 offshore wells drilled by TPAO - TOREADOR in Western Black Sea, 4 wells drilled by MERTY Company, 1 well drilled by HEMA Company. In abroad, casing cementing program was prepared for 2 wells drilled by TPIC in Georgia, 1 well drilled by PETOIL in Iraq.
RESEARCH CENTER LABORATORY SERVICES
- Foraminiferal Micropaleontology,
- Palinology,
- Nannoplankton,
- Organic Petrography Laboratory,
Determination of Age and Sedimentation Medium,
Environment,
Reservoir Biostratigraphy,
Paleoclimatology, Paleogeographicy,Paleoecology Analyses,
Bio-Chronostratigraphic Analyses,
Analyses of Well Head and Field,
Palinomorph and Age Determination from Liquid,
Hydrocarbon Samples,
Sample Processing for Visual Kerogen and Whole Rock.
•
•
•
•
•
•
•
STRATIGRAPHY LABORATORY SERVICES
Organic Petrographic Studies
- Petrographical Analysis,- Lithological Analysis,- Core Description,- Archive and Documentation,- Clay Mineralogy (X-Ray) Laboratory,- Scanning Electron Microscopy (SEM/EDS) Laboratory,- Sedimentology, a) Facies and Mediumistic Studies, b) Reservoir Defining and Characterization,
•Determination of Relative Abundances and Types of Wholerock and Clay Minerals,•Mining Industry (Roofing Tile, Ceramic, Cement and Clay etc. Sectors),•Medicine (Medical Geology, Pharmaceutical Materials),•Agriculture (Soil and Fertilizer Additives, Artificial Foodders),•Morphological Internal Structure Analyses,•Morphological Investigations of All Sorts of Mineral and Fossil Sampels,•X-Ray Microanalysis Spectrometer Analyses (IXRF2004-EDS),•Determination of Sedimentation Mediums,•Sedimentological Modeling,•Determination of Reservoir Facies and Their Spread,•Determination of Diagenetic Evolution.
SEDIMENTOLOGY AND RESERVOIR GEOLOGY LABORATORY SERVICES
-Pyrolsis (RE-6) Analyses,-Gas Chromotography,-Gas Chromatography Analyses,-Gas Chromotography Mass Spectrometery Analyses (Biomarker Analyses),-Stable Isotope Analyses (EA-GC-C-IRMS),
•Total Organic Carbon (TOC) Measurements in Rock Samples,•Determination of the Type and Potential of the Organic Material,•Determination of the Kinetic Parameters of the Organic Material,•Analysis of Gaseous Hydrocarbons,•Hydrocarbon Distribution Analyses in Oil and Extract Samples,•Analyses of the Soil Gas Used in Surface Geochemical Prospecting Studies,•High Temperature Gas Chromatography Analysis in Oil and Extract Samples,•Saturate and Aromatic Biomarker Analyses in Oil and Extract Samples,•Stable Isotope Analyses of Whole Oil and Saturated-Aromatic Fractions of Oil and Solid Hydrocarbons.
ORGANIC GEOCHEMISTRY LABORATORY SERVICES
56
CMS 300 Test System
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TPAO Annual Report 2006
Accelerated Solvent Extraction AnalysisDual Cell High Pressure High Temperature Consistometer
- Drilling and Completion Fluids Analyses,
- Cement Slurry Analyses,
- Rock Mechanics and Well Stability Analyses,
•API and High Pressure-High Temperature (HPHT) Filtration
Test,
•Measurement of HPHT Flow Properties,
•Permeability Plugging Test,
•HPHT Tickening Time Test,
•HPHT Dynamic Filtration Test,
•Static Compressive Strength Test,
•Dynamic Pressure Strength Test,
•HPHT Static Gel Strength Measurement,
•Triaxial Compressive StrengthTest,
•Static Deformability Test,
•Dynamic Deformability Test,
•Linear Swelling Test,
•Capillary Filtration Time Test.
DRILLING TECHNOLOGY LABORATORY SERVICES
- Core Analyses,- Reservoir Fluids (PVT) Analyses,- EOR Studies,
•Porosity and Permeability Measurements under Overburden Pressure,•Relative Permeability Test,•Capillary Pressure Test,•Oil, Condensate and Gas PVT Tests,•Phase Behaviour Test,•Hydrate Test,•CO Mobility Control in CO Injection by Foam, 2 2
•Polymer Gel Application for Improving Reservoir Conformance in CO Injection,2
•WOR Reduction by Crosslinked Polymer Gels.
RESERVOIR ENGINEERING LABORATORY SERVICES
- Petroleum and Petroleum Product Tests,- Water Analyses,- Gas Chromatografy Analyses, - Tracing and Controlling of Corrosion,- Well Stimulation Services,- Miscellaneous Analyses,
•Determination of Physical and Chemical Parameters of Petroleum and Petroleum Products,•Complete Analysis of Formation, Oil Field and Injection Waters,•Determination of Water Conformations to the Injection Operations,•Determination of the Composition of Hydrocarbon and Sulfur Compounds in Natural Gas and Gaseous Fuels (like LPG),•Monitoring Corrosion Coupons and Probes,•Performance Tests of Scale Inhibitors,•Determination and Evaluation of Additives Used in Well Stimulation,•Computer Simulation of Acidizing Operation by STIMCADE,•Determination of Appropriateness of Additives Used in Drilling and Well Completion Operations.
PRODUCTION TECHNOLOGY LABORATORY SERVICES
- Applied Well Control,
- Applied Drilling Fluids Technology,
- Matrix Acidizing,
- Core Analyses,
- PVT Analyses,
- Oilfield Water Treatment and Injection Quality Determination,
- Corrosion Control in Oil & Natural Gas Production,
- Sedimentology and Reservoir Geology of Carbonate and Clastic
Rocks,
- Basin Classification and Sedimentation -Tectonic Relationship,
- Petroleum and Gas Geochemistry,
- Applied Litostratigraphy and Sedimentology.
RESEARCH CENTER TRAINING ACTIVITIES
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The basic principle of our quality policy is to supply drilling services for TPAO’s and our customers’ exploration and production activities through meeting their increasing requirements and expectations with high quality and relevant cost. While conducting drilling activities with highly experienced staff, our target is to drill the wells in a safe, secure and high quality manner with low cost by applying the latest technology.
TPAO Drilling Department provides drilling, casing deployment, drilling for core plug, well control, air-foam-low pressure drilling services with the rigs having various drilling capacity.
Drilling Activities Up to Date;
Onshore Drillings
• Drilling Experience in 2.395 Wells• Deep Well Experience (6.100 m)• Deviated and Horizontal Wells• ERD (Extended Reach Drilling)• Multi Lateral Well Drillings- Batı Raman Field
Offshore Drillings
•Shallow Water Drilling (up to 80 meters water depth),•Deep Water Drilling (from 80 to 1.000 meters water depth) TPAO-TOREADOR-STRATIC Western Black Sea Joint Exploration Project,•Ultra Deep Water Drilling (Over 1000 meters water depth) TPAO-bp Eastern Black Sea Joint Exploration Project,
For providing mobilization, cost reduction, time saving and faster drilling, 800 HP MR-7000 mobile rig with the drilling capacity of 2.500 meters was delivered to TPAO in April 2007, 1.500 HP AC Drive electrical onshore rig with the drilling capacity of 5.000 meters will be delivered in 2007.
Besides, within the scope of F-320/3 Rig Upgrading Program ; main equipments of Mast, Substructures, Electrical Drawworks and Rotary Table were upgraded to 2000 HP AC Drive Electrical Rig with the drilling capacity of 6.500 meters was produced by National Oilwell Varco (USA) .
DRILLING SERVICES
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SoilMec MR 7000 Mobile Drilling Rig
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Drilling Activity
WELL COMPLETION SERVICES
Well Completion Services of TPAO provides various well
completion services in oil, natural gas and geothermal wells
drilled as exploration, appraisal and production wells in-house
and abroad and also, cementing, line testing, logging, well
stimulation and workover services requested by other oil
companies are supplied in line with TPAO’s vision with the
principle of reaching international standards.
Rig TypeCapacity
(Tons)
20
Specification
Mobile
Mobile
Mobile
Mobile
Mobile
Mobile
Mobile
RODPULLER-4
RODPULLER-5
RODPULLER-6
RODPULLER-7
RODPULLER-8
RODPULLER-9
RODPULLER-10
20
20
25
25
25
25
RODPULLER RIGS
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Rig Type
IDECO-3
IDECO-5
IDECO-6
IDECO-7
IDECO-8
IDECO-9
IDECO-10
IDECO-11*
F.COOPER-1
F.COOPER-2
NAT-1
Capacity(2 7/8” Tubing) (Meter)
4.500
4.500
4.500
4.500
4.500
4.500
4.500
4.500
4.500
4.500
5.500
Specification
Mobile
Mobile
Mobile
Mobile
Mobile
Mobile
Mobile
Mobile
Mobile
Mobile
Mobile
* IDECO-11 Workover Rig operates in Kazakhstan.
WORKOVER RIGS
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WORKOVER OPERATIONS
Well completion, re-completion and production string repair
activities in-house and abroad are performed with 11 workover
rigs including new NAT-1, 7 rodpuller and their equipments.
NAT-1 Workover Rig
Rodpuller Rig
Rodpuller Rig
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LOGGING OPERATIONS
Open Hole, Cased Hole and perforating services are supplied with 5 digital, 2 analog logging trucks and 2 log skid units totaling 9 logging units. Logging operations are performed with new IQ and INSITE tools.
TECHNICAL OPERATIONS
Cementing, acidizing, and leak off operations are performed with 12 pumping units and their equipments (cement silos and batch mixers, etc.) and also, DST operations are performed with 11 DST equipments.
Unit Type
BJ-1
BJ-2
BJ-3
BJ-4
BJ-5
BJ-6
BJ-7
T-10
HT-1
HT-2
OW-1
ACID TRUCK
Pump Type, Number
PACEMAKER,2
PACEMAKER,2
PACEMAKER,2
PACEMAKER,2
PACEMAKER,2
PACEMAKER,2
PACEMAKER,2
T-10,2
HT-400,1
HT-400,2
OIL WELL 2-48 PHD,2
PACEMAKER,1
Pump Power (HP)
900
900
500
1.300
1.300
1.300
900
520
340
680
680
450
Max Operating Pressure
(PSI)
8.000
10.000
10.000
10.000
10.000
10.000
10.000
8.000
8.000
8.000
8.000
10.000
PUMPING UNITS
System
LOG IQ SYSTEM
DDL-V / ANALOG
DIGITAL DDL 1
WARRIOR SYSTEM
DIGITAL EXCELL 2000 DBL DRUM
DIGITAL DDL V
ANALOG
DIGITAL EXCELL 2000 DBL DRUM
LOG UNITS
DIGITAL DDI-V
Model
INTER-COF-1991
INTER-TRANS.II-1979
SKID UNIT
SKID UNIT
INTER-COF-1986
INTER-COF-1986
FORD 3014-1988
INTER-COF-1986
INTER-COF-1982
Power (HP)
300
280
240
240
300
300
143
300
300
Log Unit
Log Tools
Pumping Unit
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TPAO District Managements have played an active role in the economic and social development of the region, while conducting their activities.
Building of Batman District Management Turkey's First Oil Production Well, Raman-8
At the Dodan Field, totally, 12 billion scf CO was produced and 2
refined. Then, CO was compressed and transported to the 2
B.Raman Field via pipeline and was injected to 80 CO injection 2
wells. Also, 4,8 billion scf of CO was re-injected into the reservoir 2
by re-cycle compressors.
With the aim of protecting the soil and preventing soil pollution during and after hydrocarbon exploration and production activities, Batman District Management concentrated on the implementation studies of bioremediation method used by the petroleum companies worldwide, in addition to the rehabilitation studies of contaminated soil through neutralization and stabilization methods. At the production fields, 150 new concrete mud-pits were built and brought into operation to prevent environment pollution and to control the flow of oil at well-head.
Batman District Management has also played an active role in the economic and social development of the region while conducting all these activities. Batman, before the oil discoveries, was a small village, namely Iluh. It has become an important province in South Eastern Anatolia with these discoveries. Batman has gained a great dynamism in the economical and social areas with the discovery of oil and establishment of the Refinery.
Today, Batman, as being located around TPAO complex and plant, has a great deal of contribution in national economy by increasing the employment volume in the region.
Batman District Management has been continuing its activities in the campus having a wide-range of social facilities. Moreover, the District Management contributes to education of the people in the region with the school situated in the complex.
It is envisaged that Batman District Management will boost its activities with great enthusiasm and endeavor in forthcoming years for achieving TPAO's vision of becoming a company meeting domestic oil and natural gas demand.
Exploration, drilling and production activities of crude oil and natural gas which are vital inputs of national economy have been carried out continuously since 1954. Batman District Management has an important and different position in oil sector as it is located in the region where the first oil discovery was realized and crude oil production commenced.
The first oil discovery in Turkiye was realized at the Raman Field in 1945 by MTA and the first production in economical means was realized in Raman-8 well in 1948. After foundation of TPAO in 1954, Batman District Management played a leading role in the exploration, drilling, production and refinery activities of the country.
In line with intensive exploration, drilling, production activities and oil field development studies in Batman District, drilling activities were continued in 2006. In this context, 46.075 m of drilling was realized in 33 wells with 4 active drilling crews and 5 drilling rigs.
New discoveries were realized at the G.Selmo and G.Kırtepe fields in 2006. From these fields, G.Kırtepe field was put into production, and new well drilling activities have been continued to develop the G.Selmo oil field reservoir.
In 2006, new appraisal and production wells were drilled in the fields near Syria border where high potential of oil production is estimated to exist. 9 wells were drilled and put into production at the B.Kozluca and Çamurlu fields. At the D.Sınırtepe field, which was discovered newly near the Syria border, one well was put into production and field development activities have been continued.
In order to enhance oil production at the B.Raman Field, a total of 7 wells were drilled and put into production. In Raman field 4 wells were drilled and brought on line. At the B.Raman and Raman fields, drilling activities with the aim of field development have been continued.
In 2006, the production activities in the Batman District were continued from 595 wells in 36 oil fields. As a result of these activities, 6,9 million barrels of crude oil and 54 thousand barrels oil equivalent of natural gas were produced in 2006. Furthermore, the abandoned wells at the Yolaçan, G.Hazro and İkiztepe Fields were brought on line.
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Thrace District Management has intensified its activities especially in natural gas exploration and production investment in recent years. TPAO has initiated its exploration and drilling activities in Thrace Basin with Uluman-1 well, in 1960. As a result of the studies performed in Thrace District, the first economical natural gas was discovered in 1970 at the Hamitabat and Kumrular Fields and the first oil discovery was realized in K.Osmancık and Deveçatak wells which were drilled in 1973-1974.
Due to substantial increases in TPAO's exploration and production activities in Thrace Region, TPAO Marmara District Management was founded in Tekirdağ. Furthermore, District Management's name was changed as Thrace District Management and moved to Lüleburgaz in 1984.
TPAO will increase its contributions to the national economy with its Natural Gas Storage Project and by discovering new fields as well as natural gas production in Thrace District. Our personnel having team spirit and total quality approach, have been carrying on their self-sacrifying studies at accelerated pace.
In 2006, 39.884 m of drilling activities were realized in 19 wells by Thrace District Management.
Natural gas discoveries in B.Sinekli-1, Karatepe-1, İncilibayır-1, Yeşilgöl-O1, Hamitabat-O1, D.Hamitabat-O1 exploration wells were realized. B.Sinekli-O1 appraisal well was completed as "gas well".
In addition, B.Velimeşe-1 and Reisdere-1 exploration wells drilled by TPAO - AMITY OIL joint venture in Thrace Region were resulted with natural gas discoveries. D.Adatepe-4 and Adatepe-6 appraisal wells opened jointly by AMITY OIL were completed as "gas wells".
Also, natural gas discoveries in Akkaya-1/A and Bayhanlı-1 wells drilled by TPAO - TOREADOR - STRATIC joint venture were realized. Akkaya-2,3, Ayazlı-3/A, D.Ayazlı-1,2, Akçakoca-3 wells were completed as "gas wells".
3In 2006, 399 million sm of natural gas and 140 thousand barrels of crude oil were produced in Thrace District. Crude oil and condensate produced from TPAO's fields have been transported to TÜPRAŞ by tankers.
The natural gas produced from the TPAO's fields is transported by TPAO pipelines 365 km in length and sold to 63 companies located in the region most of which are in textile, food and glass industries. Thus, TPAO contributes to the economy of the Thrace Region by providing low-cost input to the industrial plants that play significant roles in the national economy.
In the scope of the field development near Akçakoca in Western Black Sea, exploration and production activites were intensified. Natural gas production was initiated with the installation of tripod production platforms and completion of Çayağzı Natural Gas Process Facility in May 2007.
In line with requirement of storing natural gas of our country, K.Marmara and Değirmenköy Undergroung Natural Gas Storage Project was put into service in the beginning of 2007. Studies have been initiated for new possible natural gas storages having strategic importance.
THRACE
General View of Thrace District Management (Lüleburgaz)
The Edirne Bridge Over Meriç River
Silivri Natural Gas Storage Facilities
63TPAO Annual Report 2006
Building of Adıyaman District Management
ADIYAMAN
In Adıyaman, TPAO has accelerated its activities after the oil
discovery in Adıyaman Field that was put into production in 1971.
With the oil discoveries at the Çemberlitaş Field ın 1982, at the
Karakuş Field and its surroundings in 1988, Adıyaman has
become the most oil producing region of Turkiye. As a result of the
increase in activities, Adıyaman District Management was
established in 1992.
Depending upon the continuous activites in 2006, 16.875 m of
drilling in 9 wells was realized. D.Karakuş-1 was completed as
"oil well". After completing the workover operations, the well was
put into production. As of end of 2006, 14.815 barrels of oil
production from the well were realized. With the aim of
developing the field, drilling activities for 2 new wells were
initiated.
In 2006, 3,53 million barrels of oil production from 172 wells in 22
fields were realized. The cumulative oil production from the
region has reached to 171 million barrels by the end of 2006.
The breakdown losses in the wells were reduced substantially, 12
abandoned wells were re-completed and brought on line. Thus,
additional production of 76.424 barrels of oil was realized in 2006.
Furthermore, pumping and waste water systems were
rehabilitated in order to operate more productively through
reducing energy consumption and the whole equipments were
re-designed to get the maximum efficiency. Compared to 2000,
10.786.308 kWh/year energy saving was obtained.
Adıyaman District Management plays a significant role in
exploration activities performed in cooperations with domestic
and foreign firms. In this respect, the technical support and
equipments were supplied to the Western Black Sea project
performed jointly with TOREADOR-STRATIC and Zorlu Energy
(Adana), Georgia and Kazakhstan Projects performed by TPIC
(TPAO Subsidiary), within the context of geology, drilling and well
completion services.
Adıyaman District Management has realized remarkable
activities in the region and continued its aid activities for road,
school, police station and mosque constructions and thus, has
made a great deal of contribution to the development of social life
in the region.
Besides, as a sign of our environmental sensitivity, all
precautions have been taken. Various seminars on the subject of
health and safety were organized and every personnel were
acquainted with safety consciousness. Furthermore, on-the job
training programmes have been accelerated for the staff by
promoting their participation in various seminars, exhibitions and
fairs in order to acquaint them with global consciousness.
Karakuş Oil Production Tanks
64 TPAO Annual Report 2006
Karakuş Tumulus
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TPAO, with its subsidiaries and associated company is carrying out its activities, both domestically and internationally to meet crude oil, natural gas and oil products demand of Turkiye most economically.
Strategic Alliance Agreement Between Petroecuador and TPIC
• TPIC, Domestic and International Petroleum Activities
• TPOC, International Petroleum Activities
• TPBTC, Participation in BTC Crude Oil Pipeline Project
• TPSCP, Participation in South Caucasus Pipeline Project
SUBSIDIARIES
• KazakhTurkMunai Ltd. Joint Company
Petroleum Activities and Trade in Kazakhstan
ASSOCIATED COMPANY
TURKISH PETROLEUM INTERNATIONAL COMPANY LTD. (TPIC)
TPIC was established in 1988 to operate in all branches of oil
industry comprising exploration, drilling, field development,
production, transportation, refining, crude oil and oil products
trading and marketing.
TPIC aims to expand its activities in countries in target countries
such as Iraq, Syria, Libya, Azerbaijan, Turkmenistan, Uzbekistan,
Kazakhstan and Ecuador.
TPIC focused on making agreements to transport Iraqi oil to
Mediterranean ports and has taken significant steps for
constructing pipelines and storage facilities. TPIC will accelerate
additional investments such as new pipelines, refinery and
storage facilities.
SUBSIDIARIES
KAZAKHSTAN ACTIVITIES
TPIC Aktobe Branch Office was founded in 1999 and continues its
oil field services in Kazakhstan. TPIC rendered her first
international drilling service within the scope of TEPCO Project in
1999.
Between 2000 and 2002, TPIC carried out workover, logging and
perforating services for KazakhTurkMunai Ltd. with one rig. In
2004, well completion operations of two wells were carried out
for Caspineft TME Company and TPIC provided materials and
equipment hiring services for this company. According to the
contract signed in June 2003 with KazakOilAktobe Workover
Company, well completion operations were carried out for 92
wells of which 23 wells were completed in 2006 and well
completion studies have been continued in 2007. In addition, well
completion services are carried out for KTM in 9 wells and for
Aral Company in 1 well.
GEORGIA ACTIVITIES
Within the framework of the drilling contract signed on August
30, 2005 with Frontera Eastern Georgia Ltd. Company, 3 wells
were drilled and the project was completed on August 16, 2006.
Besides, through the goal of managing the operations and
following up new opportunities in Georgia, a branch office in
Tbilisi was opened on November 28, 2005.
IRAQ ACTIVITIES
Between 2001 and 2002, TPIC drilled 20 wells with 3 drilling rigs in
Khurmala field for North Oil Company (NOC) and signed a service
contract covering drilling, logging and cementing services for 10
wells in the same field on April 14, 2005. A Memorandum of
Understanding regarding the cooperation was signed with Iraq's
Oil Ministry in Ankara in May 2006.
Niko-1 Well, Georgia
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SYRIA ACTIVITIES
A drilling and mud service contract was signed on July 11, 2006 with Dove Energy Ltd. for 1 well and the operations were completed. A drilling contract for 1 well was signed on November 9, 2006 with IPR MEL Company and the operations have been continued. Moreover, through the goal of managing TPIC operations in Syria, a branch office was opened in Damascus in 2006.
TURKIYE ACTIVITIES
Within the scope of the contract signed on March 3, 2006 with Zorlu Petrogas, Oil, Gas and Petrochemical Products Construction Inc., the project was completed after drilling of 1 well in May 2006. Drilling activities were realized in the Batman and Thrace regions with TPIC’s drilling rigs.
In addition, under joint partnership of N.V.Turkse Perenco and TPAO, a drilling contract for 1 well in Silopi was signed on November 13, 2006 and the operations are continued. Within the scope of the drilling contract for 2+3 wells singed on June 16, 2006 with Hema Endüstri A.Ş. Energy Group, the first well operation is being continued in Bartın. Furthermore, a drilling contract was signed on October 13, 2006 with Gürmat Energy Investments Trading Co. for 5 firm and 4 optional wells to be drilled at the Aydın-Germencik geothermal field. The operations are planned to be initiated in March 2007.
OIL PRODUCTS TRADE
Within the scope of Oil Products Trade with SOMO (State Oil Marketing Organization) commenced in 2003, TPIC has delivered 96.500 tons of oil products to Iraq in 2006. TPIC has delivered 1,4 million tons of oil products from the end of 2003 up to end of 2006.
BUNKER ACTIVITY
TPIC is on the way of being an integrated company, with bunker project, directly serving to its strategic aim defined as “becoming one of the majors in international oil and oil products trade”.
In order to relize this project, TPIC has obtained “Bunker License” from Energy Market Regulatory Authority (EMRA) on May 26, 2006 in accordance with Petroleum Market Law No 5015. For implementation of the project, Ceyhan and Marmara regions have been determined as the primary targeted markets.
STORAGE FACILITIES
In order to strengthen its position in the Mediterranean oil market, TPIC realized an investment by constructing new storage
3tanks with 86 thousand m capacity at BOTAŞ / Dörtyol facilities. 3Consequently total capacity has reached to 100 thousand m in the
region. TPIC realized an investment at BOTAŞ / Dörtyol facilities covering loading/discharging facility to enable about 400 thousand tons of white products to be handled per month. The facility has the highest tanker loading capacity in the region.
With this investment, it was targeted to meet TPIC's needs in domestic and international markets and also needs of oil distribution and marketing companies.
Bunker Activity
TP PETROLEUM DISTRIBUTION COMPANY
In order to realize the activities such as storing, bunkering, importing and marketing of oil products to both domestic and eligible consumers, within the context of new Petroleum Market Law, TP Petroleum Distribution Company was established on February 16, 2006 and the company has obtained Distribution License on October 19, 2006 from EMRA for a period of 15 years.
HABUR – GASOIL TRADE
Through the Habur Facilities at Iraq border, TPIC has sold totally 3,7 million liters of gasoil to both international market and to domestic fuel distribution companies in 2006.
BUSINESS DEVELOPMENT
Business development studies were focused on acquiring licenses in exploration, development and production fields by following business opportunities in Azerbaijan, Iraq, Georgia, Kazakhstan and Ecuador.
Oil Distribution Activity
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TURKISH PETROLEUM BTC LTD. (TPBTC LTD.)thTPBTC Ltd. was incorporated in Cayman Islands on 20 February
2002 in order to participate in Baku–Tbilisi–Ceyhan Main Export
Crude Oil Pipeline (BTC) Project, which has a primary objective of
carrying the ACG oil to international markets, and the Project
Companies (BTC Co., BTC Int. Investment Co. and BTC Finance
B.V.) on behalf of TPAO.
TPBTC Ltd. currently has a 6,53 % share in the BTC project.
TURKISH PETROLEUM SCP LTD. (TPSCP LTD.)
TPSCP Ltd. was incorporated in Cayman Islands on May 2002
in order to participate in South Caucasus Pipeline (SCP) Project,
which has been established to carry Shah Deniz natural gas, and
the other project companies in accordance with the project
agreements on behalf of TPAO.
TPSCP Ltd. has been a party to SCP project agreements which
have been signed on February 27, 2003 under the guaranty of
TPAO. TPSCP Ltd. currently has a 9% share in the SCP project.
24,
TURKISH PETROLEUM OVERSEAS COMPANY LTD. (TPOC)
TPOC Ltd. was established in Jersey, Channel Islands in 1996 as
an affiliate of TPAO to carry out all activities related with technical
and commercial oil and gas trade.
TPOC Ltd. currently participates in Shah Deniz, 9%, Kurdashi 5%,
and Alov 10%, Projects in Azerbaijan sector of the Caspian Sea.
TPOC is working as an operator of Libyan exploration projects,
with 51% share in NC-Block-188 (Ghademes Basin) and NC-
Block-189 (Sirte Basin) and with 100% share in NC-Block-147/3-4
(Murzuq Basin). In addition, TPOC Ltd. holds 13,5% share in IIA, IIB
and III Blocks in Georgian region of Black Sea.
BTC Crude Oil, SCP Natural Gas Pipelines
ASSOCIATED COMPANY
KAZAKTURKMUNAI (KTM) LTD. JOINT COMPANY
KazakhTurkMunai (KTM) Ltd. Joint Company was established by the foundation agreement signed between TPAO and the Kazzarubejgeologia State Enterprise (KZBG) of the Kazakhstan's Ministry of Geology and Earth Preservation on the 9th of January 1993. By this Agreement, setting the shares as KZBG 51% and TPAO 49%, KTM Ltd. has acquired hydrocarbon exploration and exploitation rights in 7 blocks in 4 different regions of Western Kazakhstan.
KTM Ltd. signed, with Kazakhstan Government, the “Petroleum Exploration, Development, Production and Marketing Contract” which governs the activities within these blocks, on May 31, 1994. The contract has set out the participation interests as 49% TPAO, 26% KZBG and 25% Munaigaz, and established an 11 (4+4+3) years of exploration period starting from February 4, 1993 and a 25 years of production period for each field starting from the date of economic discovery.
The South Karatobe Field in Aktobe Region was also added to the assets of KTM Ltd. by the “Contract on the Completion of Exploration and Production of Hydrocarbons for the South Karatobe Oil Field” signed, on May 18, 1999, between KTM Ltd. and the Agency of the Republic of Kazakhstan on Investments.
According to the results of intensive exploration operations, KTM Ltd. has relinquished 5 blocks completely and 2 blocks partially which were granted by the Contract dated May 31, 1994. KTM Ltd. still owns Block IV in Aktau Region and Block IIa in Aktobe Region under this Contract and South Karatobe license under the Contract dated May 18, 1999.
In Block IV at Aktau Region; the West Yelemes oil field was declared as commercial discovery on March 20, 1996 and the Northeast Saztobe and the Southeast Saztobe oil fields on May 13, 1999. These fields have been on stream since May 1999. The East Saztobe and Tasım-Bekbolat oil fields within the same Block, are subject to test production. The total average daily oil production of the fields within this block is 2.270 barrels.
The Laktibay oil field within the Block IIa at Aktobe Region, was declared as commercial discovery on April 24, 2003. The field has been on stream since November 1999 and its average daily production is 1.550 bpd. The other oil field at Aktobe Region, the South Karatobe, was declared as commercial discovery on February 23, 2003. It has been on stream since May 2003 and its average daily production is 2.780 bpd. KTM Ltd. produced a total of 2.4 million barrels of oil in the year 2006. As of end of 2006, its cumulative production is 18,2 million barrels of oil.
Process Pumping Station, West Yelemes
70 TPAO Annual Report 2006
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In 2006, 27 % of the total domestic investment expenditures was for exploration, 27 % for production and 46 % for both drilling and the others.
Domestic Oil & Natural Gas Exploration and Development Investment Expenditures (Thousand USD)
2004 2005 2006
52.651
86.641
40.346
30.177
209.815
42.950
68.751
93.982
76.929
282.612
112.128
110.407
151.260
39.696
413.491
2004 2005 2006
Exploration
Production
Drilling
Others
TOTAL
36.819
60.588
28.214
21.103
146.724
31.815
50.927
69.616
56.984
209.342
78.083
76.885
105.334
27.644
287.946
1$=1,43 YTL 1$=1,35 YTL 1$=1,436 YTL
Domestic Oil & Natural Gas Exploration and Development Investment Expenditures (Thousand YTL)
Exploration
Production
Drilling
Others
TOTAL
INVESTMENTS
In 2006, TPAO's domestic investment expenditures were 288 million USD, while it was projected 368 million USD in 2007.
71TPAO Annual Report 2006
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By the end of 2006, approximately 88 % of the total cash call
investments are realized in Azerbaijan projects. The projects in
Azerbaijan constitute great importance for both TPAO and the
country.
Countries Investments in 2006 Cumulative Investments
AZERBAIJAN 412.588.115 2.507.436.207
ACG Project 248.714.684 1.690.714.560
Shah Deniz Project 80.640.000 336.710.878
SCP Project 27.450.000 107.478.000
Alov Project 3.160.005 26.101.507
Kurdashi Project - 17.302.390
BTC Project 51.841.426 324.152.023
Baku Offices 782.000 4.976.849
KAZAKHSTAN - 287.673.038
TURKMENISTAN 97.321 4.514.472
LIBYA 24.814.7822.789.000
Libya Block 147/3-4 2.605.000 9.867.000
Libya Block NC/188-NC/189 184.000 14.947.782
GEORGIA 458.747 565.668
ALGERIA 25.548.592-
TOTAL 2.850.552.759415.933.183
USD
Exploration and Development Invesments Abroad
Besides, its domestic oil and gas exploration and production,
TPAO started its international activities in 1993, which grew
continuously over the years.
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73TPAO Annual Report 2006
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BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The consolidated financial statements of Türkiye Petrolleri A.O have been prepared in accordance with International Financial Reporting Standards (IFRS). The company, which is incorporated in Turkiye, maintains its books of accounts and prepares its statutory financial statements in accordance with the Turkish Commercial Code and Tax Legislation and the Uniform Chart of Accounts issued by the Ministry of Finance. The foreign subsidiaries and associates maintain their books of accounts in their local currency in accordance with the related local laws and regulations in force in the respective countries where they are registered and operate. The financial statements have been prepared from statutory financial statements of the Company and its subsidiaries and associated with adjustments and reclassifications for the purpose of fair presentation in accordance with IFRS.
Currency Measuring Unit, Reporting Unit and Methodolgy of Foreign Currency Conversion Inflation adjustments have been made to the financial statements of TPAO by using wholesale price index (wpi) to disclose the effect of changes in the general purchasing power of the Turkish Lira, as of December 31, 2006 and and December 31, 2005, in accordance with IAS 29.
IAS 29 requires that financial statements prepared in the currency of a hyperinflationary economy be stated in terms of the measuring unit at the time of the balance sheet and the the balance of previous periods to be restated at the same terms by using general price index. One of the characteristics that necessitates the application of IAS 29 is a cumulative three-year inflation rate approaching or exceeding 100%. Such cumulative rate in Turkiye is 32,79% for the three years ended December 31, 2006 (December 31, 2005 - 35,61%) based upon the wholesale price index announced by the Turkish Statistical Institute (“TURKSTAT”).
Although the three year cumulative inflation rate was below the rate indicated in the preceding paragraph, since the majority of the people keep their savings in foreign currencies, the prices of goods and services are set in terms of foreign currencies, interest rates, prices and wages are expressed in terms of the general price indexes, and the market prices are determined by taking into account the interest cost to offset the losses of purchasing power including the short-term transactions, and such examples show the characteristics of a hyperinflationary environment and therefore the accompanying consolidated financial statements are adjusted according to inflation arrangements described as in IAS 29.
The relevant years' indexes and conversion coefficients are as follows:
Date Index Conversion Coefficient
31 December 2003 7.382,1 1.327931 December 2004 8.403,8 1.166531 December 2005 8.785,7 1.115831 December 2006 9.802,7 1.0000
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The main principles for the above-mentioned restatements are as
follows:
- The financial statements which are stated in terms in terms of
the previous year's price levels are restated in terms of the
current Turkish Lira at 31 December 2006.
- Monetary assets and liabilities reported in the balance sheet a 31
December 2006 are not restated because they are already
expressed in terms of the monetary unit current at that balance
sheet date.
- The inflation adjusted capital was derived by indexing cash
contributions, dividends reinvested, legally accumulated profits,
affiliates' and tangible fixed assets' profits added to the capital are
transferred to capital from the date they were contributed.
- Non-monetary assets and liabilities which are not carried at
amounts current at the balance sheet date and equity capital
(except the revaluation fund which is eliminated in the inflation
accounting practice) are restated by applying the relevant
conversion factors.
- The gain or loss on the net monetary position as the result of the
effect of the general inflation differs accordingly as a result of the
restatement of non-monetary assets, shareholders' equity and
income statement items. The gain or loss on the net monetary
position has been derived as a difference resulting from the
restatement of non-monetary assets, owners' equity and income
statement items.
- All items in the income statement are restated by taking into
account the changes occurred between index at the transaction
date and the index at the balance sheet date, with the exception of
depreciation, amortization, gain or loss on disposal of non-
monetary assets (which have been calculated based on the
restated gross book values and (- ) accumulated
depreciation/amortization).
Currency Measuring Unit, Reporting Unit and Methodolgy of
Foreign Currency Conversion of Subsidiaries and Affiliates:
Financial statements of the foreign subsidiaries, prepared in US
Dollars and consolidated accordingly, are converted into New
Turkish Lira at the closing-rate of foreign currency at the balance
sheet date before inclusion into the consolidated statements.
Measurement Currency
KTM
TPOC
TPBTC
TPSCP
TPIC
TPPD
USD
USD
USD
USD
USD
USD
Associated Company and Subsidiaries
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Conversion of Financial Statements to Foreign Exchange As a Matter of Convenience
For the convenience of the reader, the accompanying financial statements have been converted from New Turkish Lira to USD with the Central Bank buying exchange rate at period-end of 31 December 2006 (USD = YTL 1,4056). This transaction is not intended to comply with the provisions of IFRS 21 "The Effects of Changes in Foreign Exchange Rates" or Financial Accounting Standards Board No.52 "Foreign Currency Conversion" for the exchange of financial statements in a highly inflationary economy. The Turkish Lira amounts, underlying the conversion, have been re-measured in compliance with International Accounting Standard 29, "Financial Reporting in Hyperinflationary Economies" as explained above.
Principles of Consolidation
The Consolidated financial statements comprise the financial statements of TPAO ("the Parent Company", "the Company") and its subsidiaries, which it controls, drawn up to 31 December 2006. Subsidiaries are defined as the companies which the Parent Company directly or indirectly owns 50% of the share, voting rights or majority of the management; or which the Parent Company controls. Controlling power refers to the power to have an active role and govern financial and operating policies of the subsidiary so as to obtain benefits from its activities. Companies where the power to govern does not exist but the parent has an interest of 20% to 50% in the share capital are defined as affiliated companies.
The subsidiaries and the affiliates' titles and their shareholding percentages at 31 December 2006 are as follows:
KTM
TPOC
TPBTC
TPSCP
TPIC
TPPD
Associated Company and Subsidiaries
Effective Rate of Ownership (%)31 December 2006
49
100
100
100
100
100
The subsidiaries and the affiliates' titles and their shareholding percentages as of 31 December 2006
The Company's participating interest in KTM is reflected to the financial statements by using equity method. The equity method is a method of accounting whereby an equity investment is initially recorded at cost and subsequently adjusted to reflect the investor's share of the net profit or loss of the associate (investee). In the equity method, the profit and losses of the subsidiaries, up to the amount of the Parent Company's share of interest, are reflected to the income statement. Net assets of the subsidiaries, also up to the amount of the Parent Company's share of interest, are disclosed in the balance sheet. In the case of a long term value sag determination, provisions are allocated by the Parent Company. The book value of the investment in the capital of subsidiaries held by the parent company has been offset against the equity of the invested companies and all inter-company purchase and sales and all accounts receivable and payable balances have been clarified.
GoodwillGoodwill arising on consolidation represents the excess of the cost of acquisition over TPAO's interest in the fair value of the identifiable assets and liabilities of a subsidiary, associate or jointly controlled entity at the date of acquisition. Goodwill is recognized as an asset and is subject to impairment review. Goodwill arising on the acquisition of an associate is included within the carrying amount of the associate. Goodwill arising on the acquisition of subsidiaries and jointly controlled entities is presented separately in the balance sheet.
On disposal of a subsidiary, associate or jointly controlled entity, the attributable amount of unamortized goodwill is included in the determination of the profit or loss on disposal. Negative goodwill represents the excess of TPAO's interest in the fair value of the identifiable assets and liabilities of a subsidiary, associate or jointly controlled entity at the date of acquisition over the cost of acquisition. Negative goodwill is released to income based on an analysis of the circumstances from which the balance resulted. Negative goodwill arising on the acquisition of an associate is deducted from the carrying value of that associate. Negative goodwill arising on the acquisition of subsidiaries or jointly controlled entities is presented separately in the balance sheet as a deduction from assets. No significant goodwill arose in the acquisition of subsidiaries or associates by TPAO.
Accounting ForecastsThe preparation of consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results might differ from these estimates. These estimates are reviewed periodically and, as adjustments become necessary they are reported in the income statement in the periods in which they become known.
Related PartiesFor the purpose of these consolidated financial statements, subsidiaries and affiliates and the Treasury (the Company's sole shareholder) are referred to as related parties.
Allowance of Doubtful ReceivablesDebtors are stated in the balance sheet at estimated net realizable values. Net realizable value is the invoiced amount less reserves for doubtful debts. Allowances are recognized against doubtful debts, which are under legal proceedings. Allowance for other receivables is provided based on an amount that management believes is adequate to absorb future losses on existing receivables based on an analysis of balances by age, previous loss experience and general economic conditions (based on the best adequate estimate of management).
Revenue RecognitionGroup's revenues are comprised of all the services and sales income (except the net income within the Group). Revenues are recorded as the net invoice value at the time when the services are provided. Revenue is shown net of value added and sales taxes, discounts and returns, all restated in equivalent purchasing power at 31 December 2006. Sales of oil and other products are recorded when title passes to the customer. Revenue from the production of oil and natural gas in which the Group has an interest with other parties to the project are recognized on the basis of the Group's working interest in the project.
InventoriesInventories are stated at the lower of cost, which restated at the equivalent purchasing power at 31 December 2006, and net realizable value. In accordance with that principle, necessary provision is set for the diminution of value of inventories and accounted in previous year's expense account. Costs comprise direct materials and, where applicable, direct labor costs and those overheads that have been incurred in bringing the inventories to their present location and condition but excludes borrowing cost. Cost is calculated by using the weighted average method.
Successful Effort MethodThe Company enters the petroleum research and development costs in its accounts in accordance with successful effort method. Accordingly, all the costs incurred in petroleum research activities are capitalized in case of a proved reserve. If not all these costs are transferred to the expense accounts. But pre-drilling exploration costs are directly transferred to the expense accounts in the income statement regardless of whether or not proved reserves are found. However, development expenses are incurred in order to improve the production of crude oil or natural gas, consequently they are capitalized even though they don't reach to their intended targets.
A proved reserve is depleted using a rate derived after dividing actual production by forecasted total estimated reserve amount.
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ASSETS
CASH
BANKS
MARKETABLE SECURITIES
ACCOUNT RECEIVABLES-NET
NOTES RECEIVABLES-NET
DUE FROM PARTICIPATIONS
DUE FROM RELATED PARTIES
DUE FROM RELATED PARTIES
DUE FROM SHAREHOLDERS
OTHER RECEIVABLES
INVENTORIES
PREPAID EXPENSES AND INCOME ACCRUALS
OTHER CURRENT ASSETS
CURRENT ASSETS
DEPOSITS & GUARANTEES GIVEN
DUE FROM RELATED PARTIES
INVESTMENTS
TRADE RECEIVABLES
PARTICIPATIONS
TANGIBLE FIXED ASSETS ( NET)
INTANGIBLE FIXED ASSETS (NET)
WELLS IN PROGRESS
WELLS IN PRODUCTION
ADVANCES GIVEN
PREPAID EXPENSES AND INCOME ACCRUALS
DEFERRED TAX ASSETS
LONG-TERM ASSETS
TOTAL ASSETS
29 51
240.506 547.322
242.162 296.115
6
1.044 1.887
199.624 191.734
72.759 6.840
4.242 3.347
760.369 1.047.302
5.011 65
524.565 210.306
911.493 1.091.263
9.573 20.014
38.093 32.645
651.500 589.846
18.307 14.429
132.342 96.420
30.618
241 9.625
1.065 486
35.591 39.915
2.358.398 2.105.014
3.118.767 3.152.316
2006 2005
TURKISH PETROLEUM CORPORATIONCONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 2006 AND DECEMBER 31, 2005 (THOUSAND YTL)
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LIABILITIES
41.881
10.904
156.360 169.752
147
38.705 15.116
4.694 109.585
54.716 55.629
17.388 572
69.945 56.551
341.809 460.139
426.435
77
16
84.205 83.880
176.401 32.776
15
260.624 543.184
3.297.594 3.219.778
3.227.844 3.055.925
(4.407.815) (4.297.150)
398.712 170.440
2.516.334 2.148.993
3.118.767 3.152.316
2006 2005
TURKISH PETROLEUM CORPORATIONCONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 2006 AND DECEMBER 31, 2005 (THOUSAND YTL)
SHORT TERM BANK LOANS
CURRENT PORTION & INTEREST OF LONG TERM BANK LOANS
TRADE PAYABLES
NOTES PAYABLES
DUE TO SHAREHOLDERS
DUE TO RELATED PARTIES
OTHER PAYABLES
TAX LIABILITY
PROVISIONS FOR LIABILITIES AND EXPENSES
INCOME FOR FUTURE PERIODS & EXPENSE ACCRUALS
DEFERRED TAX LIABILITY
SHORT TERM LIABILITIES
BANK LOANS
DUE TO SHAREHOLDERS
OTHER PAYABLES
PROVISION FOR RETIREMENT PAY LIABILITIES
PROVISION FOR OTHER DEBT
INCOME FOR FUTURE PERIODS AND EXPENSE ACCRUALS
DEFERRED TAX LIABILITY
LONG TERM LIABILITIES
CAPITAL
RESERVES
RETAINED EARNINGS
NET PROFIT / (LOSS) FOR THE PERIOD
TOTAL SHAREHOLDERS' EQUITY
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
78 TPAO Annual Report 2006
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ASSETS
CASH
BANKS
MARKETABLE SECURITIES
ACCOUNT RECEIVABLES-NET
NOTES RECEIVABLES-NET
DUE FROM PARTICIPATIONS
DUE FROM RELATED PARTIES
DUE FROM RELATED PARTIES
DUE FROM SHAREHOLDERS
OTHER RECEIVABLES
INVENTORIES
PREPAID EXPENSES AND INCOME ACCRUALS
OTHER CURRENT ASSETS
CURRENT ASSETS
DEPOSITS & GUARANTEES GIVEN
DUE FROM RELATED PARTIES
INVESTMENTS
TRADE RECEIVABLES
PARTICIPATIONS
TANGIBLE FIXED ASSETS (NET)
INTANGIBLE FIXED ASSETS (NET)
WELLS IN PROGRESS
WELLS IN PRODUCTION
ADVANCES GIVEN
PREPAID EXPENSES AND INCOME ACCRUALS
DEFERRED TAX ASSETS
LONG-TERM ASSETS
TOTAL ASSETS
21 36
171.106 389.387
172.284 210.668
4
743 1.342
142.020 136.407
51.764 4.866
3.018 2.381
540.955 745.092
3.565 46
373.196 149.620
648.473 776.368
6.811 14.239
27.101 23.225
463.503 419.640
13.024 10.265
94.153 68.597
21.783
171 6.848
758 346
25.321 28.397
1.677.859 1.497.591
2.218.814 2.242.684
2006 2005
TURKISH PETROLEUM CORPORATIONCONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 2006 AND DECEMBER 31, 2005 (THOUSAND USD)
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LIABILITIES
29.796
7.758
111.241 120.769
105
27.536 10.754
3.339 77.963
38.927 39.577
12.371 407
49.762 40.233
243.176 327.361
303.384
55
11
59.907 59.676
125.499 23.318
11
185.417 386.443
2.346.040 2.290.679
2.296.417 2.174.108
(3.135.896) (3.057.164)
283.660 121.258
1.790.221 1.528.880
2.218.814 2.242.684
2006 2005
TURKISH PETROLEUM CORPORATIONCONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 2006 AND DECEMBER 31, 2005 (THOUSAND USD)
SHORT TERM BANK LOANS
CURRENT PORTION & INTEREST OF LONG TERM BANK LOANS
TRADE PAYABLES
NOTES PAYABLES
DUE TO SHAREHOLDERS
DUE TO RELATED PARTIES
OTHER PAYABLES
TAX LIABILITY
PROVISIONS FOR LIABILITIES AND EXPENSES
INCOME FOR FUTURE PERIODS & EXPENSE ACCRUALS
DEFERRED TAX LIABILITY
SHORT TERM LIABILITIES
BANK LOANS
DUE TO SHAREHOLDERS
OTHER PAYABLES
PROVISION FOR RETIREMENT PAY LIABILITIES
PROVISION FOR OTHER DEBT
INCOME FOR FUTURE PERIODS AND EXPENSE ACCRUALS
DEFERRED TAX LIABILITY
LONG TERM LIABILITIES
CAPITAL
RESERVES
RETAINED EARNINGS
NET PROFIT / (LOSS) FOR THE PERIOD
TOTAL SHAREHOLDERS' EQUITY
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
*The financial statements have been audited and prepared in the currency of New Turkish Lira. The financial statements have been translated from YTL to USD with The Central Bank Buying Exchange Rate at period-end. The Central Bank Buying Exchange Rate for the end of 2005 and 2006 is 1,4056 YTL.
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1.278.081 1.629.520
(93.639) (71.656)
(604.546) (1.009.747)
579.896 548.117
(181.098) (55.738)
(30.264) (21.105)
(193.403) (168.010)
175.132 303.264
787.316 122.030
(352.673) (64.451)
(4.863) (652)
(163.889) (63.789)
441.023 296.402
(23.048) (69.550)
(19.263) (56.413)
398.712 170.440
SALES
SALES DISCOUNT
COST OF GOODS SOLD
GROSS PROFIT OR (LOSS)
RESEARCH AND DEVELOPMENT EXPENSES
MARKETING, SELLING AND DISTRUBITION EXPENSES
GENERAL ADMINISTRATION EXPENSES
OPERATION INCOME / (LOSS)
INCOME AND PROFIT FROM OTHER OPERATIONS
EXPENSES AND LOSSES FROM OTHER OPERATIONS
FINANCIAL EXPENSE
MONETARY GAIN / (LOSS)
PROFIT OR (LOSS) FOR THE PERIOD
PROVISIONS FOR TAXES PAYABLE
DEFERRED TAXATION
NET PROFIT OR (LOSS) FOR THE PERIOD
TURKISH PETROLEUM CORPORATIONCONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31 , 2006 AND DECEMBER 31 , 2005 (THOUSAND YTL)
2006 2005
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909.278 1.159.306
(66.619) (50.979)
(430.098) (718.374)
412.561 389.952
(128.840) (39.654)
(21.531) (15.015)
(137.595) (119.529)
124.595 215.754
560.128 86.817
(250.906) (45.853)
(3.460) (464)
(116.597) (45.382)
313.761 210.872
(16.397) (49.481)
(13.704) (40.134)
283.659 121.257
SALES
SALES DISCOUNT
COST OF GOODS SOLD
GROSS PROFIT OR (LOSS)
RESEARCH AND DEVELOPMENT EXPENSES
MARKETING, SELLING AND DISTRUBITION EXPENSES
GENERAL ADMINISTRATION EXPENSES
OPERATION INCOME / (LOSS)
INCOME AND PROFIT FROM OTHER OPERATIONS
EXPENSES AND LOSSES FROM OTHER OPERATIONS
FINANCIAL EXPENSE
MONETARY GAIN / (LOSS)
PROFIT OR (LOSS) FOR THE PERIOD
PROVISIONS FOR TAXES PAYABLE
DEFERRED TAXATION
NET PROFIT OR (LOSS) FOR THE PERIOD
TURKISH PETROLEUM CORPORATIONCONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31 , 2006 AND DECEMBER 31 , 2005 (THOUSAND USD)
2006 2005
*The financial statements have been audited and prepared in the currency of new Turkish Lira. The financial statements have been translated from YTL to USD with The Central Bank Buying Exchange Rate at period-end. The Central Bank Buying Exchange Rate for the end of 2005 and 2006 is 1,4056 YTL.
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CURRENT RATIO = 2.22
ACID TEST RATIO = 1.64
LIQUIDITY RATIO = 0.70
FINANCIAL LEVERAGE = 0.19
THE RATIO OF EQUITY TO TOTAL ASSETS = 0.81
THE RATIO OF EQUITY CAPITAL TO LIABILITIES = 4.18
GROSS SALES REVENUE / NET SALES REVENUE = 0.49
NET PROFIT / TOTAL ASSETS RATIO = 0.13
FINANCIAL RATIOS DERIVED FROM CONSOLIDATED FINANCIAL STATEMENTS OF TPAO FOR 2006
83TPAO Annual Report 2006
HEADQUARTERS
Turkish Petroleum CorporationSöğütözü Mahallesi 2.Cadde No:86 06100 Çankaya - Ankara / TURKIYEPhone: +90 (312) 207 20 00 Telefax: +90 (312) 286 90 00 - 286 90 01E-mail: [email protected]: www.tpao.gov.tr
TPAO SUBSIDIARIES AND ASSOCIATED COMPANY
TPIC,Turkish Petroleum International Company td.Söğütözü Caddesi No:27 Söğütözü - Ankara / TURKIYEPhone: +90 (312) 285 44 55Telex: 44063 TPIC TRTelefax: 0(312) 484 57 31E-mail: [email protected]: www.tpic.com.tr
KazakTurkMunai Ltd. Joint CompanyBusiness Center "Okan Inter-Continental" 144,Abay Ave, Astana, 473000 REPUBLIC OF KAZAKHSTANPhone: 00 7 (3172) 39 10 25Telefax: 00 7 (3172) 39 10 29 - 39 10 26E-mail: [email protected]
TPAO INTERNATIONAL OFFICES
Azerbaijan TPAO / TPOC / TPBTC Officeth340 Nizami Street, 370000 ISR Plaza, 4 Floor Baku - AZERBAIJAN
Phone :(00 99 412) 498 95 26 - 493 14 98Telefax:(00 99 412) 498 14 35
TPOC,Tripoli - Libya OfficethAl Fatah Tower 1, 9 Floor, No:91 Tripoli -LIBYA
Phone: (00 218 21) 335 14 94 - 335 14 96Telefax: (00 218 21) 335 14 95E-mail: [email protected]
Turkmenistan Branch OfficeGöroğlu Cad. No:41A - 321 T.C. Kültür Merkezi Aşkabat - TURKMENISTANPhone: (00 99 312) 27 35 36 - 27 35 38Telefax: (00 99 312) 27 35 39E-mail: [email protected]
TPIC Tbilisi Branch OfficeChavchavadze Avenue Abuladze Street No:7 - TBILISI - GEORGIAPhone: 00 995 32 912 942Telefax: 00 995 77 52 11 08E-mail: [email protected]
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www.tpao.gov.tr
TURKISH PETROLEUM CORPORATION