1

2

Sources of Natural Gas Supply - European Union

Source: Eurogas

2030Indigenous Imports 80% Production 20 %

2002Indigenous Net Imports 48% Production 52 %

2001Indigenous Net Imports 45% Production 55 %

13%

19%

12%

55%

1%

Import Norway

Import Russia

Import Algeria

Import Others

Indigenous Production

Indigenous Production

Imports

14%

18%

12%

53%

3%

Source: EU-forecast, EU Energy, Issue 86, July 2nd, 2004

80%

20%

3

Forecast of Gas Supply – OECD Europe

OECD European gas balance, 1990 - 2030

0

200

400

600

800

1.000

1990 2000 2010 2020 2030

bcm

y

Indigenous production Africa Transition economies

Middle East Other

Source: „Security of Gas Supply in Open Markets - LNG and power at a turning point“, Edition 2004 (OECD/IEA)

4

New projects / Investment needs

Source: International Energy Agency (2002a).

0 10 20 30 40 50 60 70 80 90 100

LNG regasification

Storage

Transmission

Distribution

billion dollars

Alternative Scenario Reference Scenario

5

Requirements for realisation of new projects

Investment necessity in transmission networks US$ 50 to 75 billion in the next decades 1) Investment need in Russia, the Middle East and Africa not included

Prerequisites attractive investment climate for the natural gas industry in Europe Necessity for long term stable arrangements with relevant regulatory authority

1) Source: Gas Matters Today, 25.09.03 ref. IEA statement

6

Gas Reserves around Europe

47,570 bcm~80 years

33,530 bcm~183 years

4,000 bcm~83 years

1,770 bcm~22 years

4,520 bcm~43 years

Source: OMV Gas GmbH, May 2004

Nabucco Gas Pipeline

New gas supply route to Europe from

Turkey to Austria

via Bulgaria, Romania and Hungary

8

Project Partners

OMV OMV Gas Gmbh, Austria

MOL MOL Natural Gas Transmission Ltd., Hungary

Transgaz S.N.T.G.N. Transgaz S.A., Romania

Bulgargaz Bulgargaz EAD, Bulgaria

BOTAS Botas Petroleum Pipeline Corporation, Turkey

9

Nabucco Gas Pipeline Strategic Goals of Project

Opening a new gas supply corridor for Europe from Middle East and Caspian regions

Raise transit profiles of participating project countries

Contribution to security of supply for partner countries and for Europe as a whole

Strengthening the turntable position of Austrian pipeline grid and the Hub Baumgarten within the European network

10

Nabucco Gas Pipeline Nabucco‘s Market Shares result from . . .

Cost competitiveness vis-a-vis other new projects

Large gas fields in Middle East and Caspian region

Supply diversity – relative to already linked sources

Nabucco partners take-off gas to partially meet their future gas demands

11

Nabucco Gas PipelineProposed route

Source: OMV Gas GmbH, May 2004

12

OMV Gas GmbH - Transmission Pipelines through Austria

WAG

TAGI + II

SOL

PENTAWest HAG

BaumgartenOberkappel

Arnoldstein

Murfeld

Burghausen

SLO HR

F

H

CZ

SK

0,72

1,62

0,19

0,18

34,82

5,65

D

I

21,06

N

2,60

0,26

2,89

NABUCCO

13

Nabucco Gas Pipeline Basic Pipeline Data

Length of the Pipeline appr. 3,200 km Expected capacities (2020) Total capacity Turkey 25,5 – 31,0 bcmy Expected offtake in Transit countries 12,0 – 15,0 bcmy Total capacity to Austria Baumgarten 13,5 – 16,0 bcmy

Total Investment for plateau level 4.6 billion EUR

14

Results of Market Study

Source: The Boston Consulting Group, June 2004

2,5 2,5

1215

2

8

13,5

16

0

5

10

15

20

25

30

35

Base Case High Case Base Case High Case

bcm

Off take Transit Countries Capacity to Baumgarten

2010 2020

4,5

10,5

25,5

31,0

15

Nabucco Gas PipelineTime schedule / Milestones (1) REALIZED

In October 2002 a co-operation agreement was signed by the project partners - goal is to conduct a feasibility study for constructing the pipeline

1H 2003 saw - the preliminary pipeline route approved and all border crossings fixed - the finalisation of the working program - the application for EU-funding

Interim market study was finalised in 2H 2003 and the technical and environmental studies started

1H 2004 saw first results of the Technical Working Group and initial considerations on legal and tax issues

16

Nabucco Gas PipelineTime schedule / Milestones (2) REALIZED

Nabucco Company Pipeline Study GmbH, Vienna was found as Joint Venture of the five partners in February 2004. Scope of the Company:

- coordination of the study phases - coordination/execution of marketing activities - lobbying/negotiations with regulatory authorities - negotiations/marketing of the transportation capacity

Review of market study and refining of business model by end of June 2004

Appointment of ABN Amro as financial advisors to projectin July 2004

17

Nabucco Gas Pipeline Time schedule / Milestones (3) TO BE REALIZED

Foreseen steps for the 2H 2004:

Finalisation of all study phases Final results of Technical Working Group Final run of business model Completion of financial feasibility study Assessment of legal frameworks and tax issues Negotiations with shippers

Basis for decision of the project partners how to proceed with the project.

Signing of Partnership Agreement for construction and operation phases.

18

Nabucco Gas Pipeline Time schedule / Milestones (4) TO BE REALIZED

Finalisation of Feasibility Study End 2004

Detailed Technical Design / Environmental Assessment Study 2005 – Mid 2006

Construction to begin around 2H 2006

Construction completed and pipelineoperational around End 2009