5 - TPAO

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After commencement of the construction of
the pipeline physically in 2004, construction
activities have been completed. In line with
the production activities of Shah Deniz,
continuous gas transportation was started on
March 7 th , 2007.
The pipeline has a transportation capacity of
9 billion m³ of natural gas to Turkish border
with one compressor station in Sangachal
Terminal according to the terms of AGSC-
BOTAŞ Sales and Purchasing Agreement
(SPA). However, it is possible to expand this
capacity up to 22 billion m³ annually by adding
new compressor stations and/or looping.
In 2011, totally 6.65 billion m³ natural gas was
transported and 3.67 billion m³ of this amount
was sold to BOTAŞ. The main target of the
project is to transport the gas produced from
Caspian Region to Europa via Turkey in the
future.
North Africa and Middle East Region
Libya
TPOC, a fully owned affiliate of TPAO, is
conducting exploration and appraisal work as
operator in the Area 147/3&4, Murzuq Basin,
Libya. 7 out of 11 wells drilled in the basin
were completed as oil well. Libya NOC made
the official discovery announcement over 6
structures tested. The drilling of an appraisal
well was completed in 2011.
The other planned drilling and operations
could not be performed and suspended
temporarily due to the events started on
February 2011 in Libya. TPOC Libya Branch
Office started its studies in September 2011.
Iraq
Since 1994, TPAO has been working closely
with the Iraqi Ministry of Oil for exploration,
development and production opportunities in
Iraq.
In addition to TPAO’s success in first and
second licensing rounds organized by the
Iraqi petroleum authority PCLD (Petroleum
Contracts and Licensing Directorate) in 2009
and awards of Badra and Missan Oil Fields
development, TPAO has offered three bids for
the Iraq’s third licensing round and has been
awarded for 20 year term operating rights for
Siba and Mansuriya Gas Field in 2010.
Badra Oil Field Development Project
In 2009, within the scope of the second round,
the consortium including TPAO was awarded
for a contract to develop Badra Oil Field.
KOGAS (South Korea) and PETRONAS
(Malaysia) take part in the project as partners
while GAZPROM NEFT has the role of
operating of the project. TPAO holds 10% of
the shares in the consortium.
The effective date of the signed agreement
was February 18 th , 2010. Seismic acquisition
and interpretation works have been
completed, and drilling of 2 development
wells continues as of December 2011.
Missan Oil Field Development Project
Missan Oil Field is located about 175 km north
of Basrah city and includes Abu Ghirab, Jabal
Fauqi and Buzurgan oil fields. These fields
will be developed by CNOOC (Operator,
63.75%), TPAO (11.25%) and IDC (25%).
The Producing Fields Technical Service
Agreement (PFTSC) was signed on May 17 th ,
2010 with the effective date of the Agreement
of December 20 th , 2010.
6 Wells were drilled and completed and 2
drilling operations are ongoing in the Missan
Fields. The tender for seismic data acquisition,
process and interpretation was finalized and
seismic operations are expected to start in
2012, accordingly.
Siba Gas Field Development Project
The consortium, in which the operator, Kuwait
Energy Company (KEC), holds 60% and
TPAO holds 40% of shares, won the bid for
Siba Gas Field in Iraq’s southern oil hub of
Basra on October 2011. The consortium has