1 Presentation title - edit in the Master slide

Azerbaijan

Update & Pipeline of Prospects

December 2015

Sue Whitbread UKTI Business Specialist

2

AZE-01 HVO Statistics Investment in capital and operational phase

projects 2015-2018

• £26 billion

• UK Accessible Export Value

• £17.8 billion

• Investment in the O&G sector to date US$59 billion

• Long term investment – 2015 to 2025 US$110

billion – upstream, mid- stream, down- stream

• HVO programme awards in 2015:

• Secured: £150 million(process control

equipment)

• UK export value 98 percent

• HVO Programme additional awards

possible by end FY 2015

• £1,000 million

• UK export value £840 million

Engineering

(FEED, EPCm)

£3.8 billion

Equipment

£7.2 billion Material

Bulks

£3.3 billion

Specialist

Services

£3.5 billion

3

Fields and Prospects . Azeri-Chirag-Guneshli

BP (op): 35.83%

Statoil: 8.6%; Chevron: 11.3%

Socar: 11.57%; Inpex: 11%; Exxon:

8%; TPAO: 6.7%; Itochu: 4.3%;

ONGC: 2.7%

Shah DenizBP (op): 28.8%

Petronas: 15.5%; Nico: 10%

Socar: 16.7%; Lukoil: 10%

TPAO: 19%;

Baku

Bahar Gum-Deniz

Bahar Energy 80%

Socar: 20%;

Bahar

Bulla DenizSocar: 100%;

Bulla Deniz

Absheron

Total: (op): 40%

Socar: 40%

GDF: 20%:

UmidSocar (op): 80%

Noble Oil : 20%

Babek

Shafag AsimanBP: (op): 50%

Socar: 50%

Mashal

Zafar

Absheron

Shallow Water

Exploration

BP Socar PSA

4

Major BP-operated and contracted facilities

Shah Deniz Stage 2

Planned production

December 2018

Shah Deniz Stage 1

First production

November 2006

Istiglal

Drilling rig

Heydar Aliyev

Drilling rig

Deepwater Gunashli

First production

April 2008

West Chirag

First production

January 2014

Chirag

First production

November 1997

Dada Gorgud

Drilling rig

West Azeri

First production

December 2005

Central Azeri

First production

February 2005

East Azeri

First production

November 2006

Sangachal terminal

First operations

October 1997

ACG EPCm

Onshore /

Offshore

Brown Field

Onshore

Produced Water

Facilities

2015/2016 2016/2018 ACG New

Platform Shah Deniz 3

5

To European markets

Shah Deniz Stage 2 and SCPX Contracts to sell gas to

Turkey (6bcma) and

Europe (10bcma)

Two new bridge-linked

platforms providing

16bcma offshore

processing

Existing

Stage 1

platform

26 subsea wells

drilled with two

semi-submersible

rigs

360km of pipelines

and 125km of subsea

flow-lines in up to 550m

water depth

New gas and condensate

processing facilities with a

compressor at Sangachal

1,900km TANAP

pipeline (not BP

operated) across Turkey

16bcma upgrade of SCP:

• new SCPX 48” loop in

Azerbaijan/Georgia

• 2 new compressor stations

in Georgia

6

Total Absheron Development

ABX-1A

ABX-2&ST

5

km

Z

Expected water

contact South

Panel

Structural spill

North PanelAbsheron

Complex Geology of layers above reservoir (mud volcanoes, creeping

shales, shallow gas, overpressurized layers, …. inducing:

Difficult seismic interpretation

Drilling constraints

Heavy wells completion

Logistic constraints linked to closed sea

Limited availability of equipment

Uneasy and costly transport/supply

Future development mainly in deep sea environment

Limited rig availability

7

Absheron Development Plan

Baku

Onshore facilities:

onshore terminal plus

7km lines (terminal

→ existing pipelines)

Sangachal

Unmanned SSSP platform with

500mmscfd production plateau

4 subsea wells connected to

two rings of 12’’ line with ILTs.

1 liquid export line: 10” CS

1 gas export line: 22” CS

1 MEG import line: 2” CS

Power cable and fibre optic line

(Power from shore)

Onshore treatment plant

4 vertical wells: 10 Kpsi Xmas trees - MPFM &

6” jumper

4 FLET-T for subsea wells connections

4 production lines: 10” CS wet insulated, ~20

km length

1 Production Control Umbilical including 2”

LDHI lines: ~20 km total length

8

ABSHERON DEVELOPMENT DESCRIPTION

DEVELOPMENT WELL SUMMARY

Well architecture 15K wellhead and 10K horizontal Xmas tree

High rate gas producer design (max 200

MMscfd)

“Bottle” completion design with cased and

perforated 5 ½” production liner

Liner tie-back for 13 3/8” x 13 5/8” casing and

10” x 10 ¾’’ casing for better cement jobs

Contingency liners : 11 7/8”, 7 5/8”

Benchmark Challenging drilling but within the envelope

(depth , deviation) of existing wells

Well average duration/Cost 220 to 250 days, 250 to 350 M$ depending on

rig rate considered

9

ABSHERON DEVELOPMENT

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This Document is the property of TOTAL.It shall not be stored, reproduced or disclosed to others without written authorisation from the company.

Contractor name:

Project name & Logo

Revision Memo

Syst. / S-Syst.:

Company Ref:

Contractor Ref:

N° contracts/RFS:

Doc type: Discipline:

Company name & Logo

Exploration Production

DateRev Status

Scale:Revision:

Folio:

Electronic Filename:

Contractor name & Logo

Approved byIssued by Checked by

_ _ _

TOTAL E&P AZERBAIJAN B.V.ABSHERON FIELD DEVELOPMENT 2013 Conceptual

SINGLE STAGE SEPARATION PLATFORM

SOUTH ELEVATION

Plot plan (dwg)AZ_ABS_04_021_000030_01.DWG

AZ ABS_04 021 00003001

00 16/04/2013 First issue DUCHEMIN_

01 17/09/2013 UPDATE DUCHEMIN_

Single Stage Separation Platform

comprises the following items:

HIPPS on 12” Inlet Riser

Flowline Pig Launcher/Receiver

Two phase HP Separator

Condensate Export Pumps

Gas Export Piping

LDHI-AA storage

Chemical Injection Package

Vent System

Closed Drains System

Open Drains System

Electric CraneThe platform main characteristics are the

following:

4 legs jacket

Topside: 24 m x 24 m

Flare boom: 123 m for block outlet

Electrical cable and optic fiber line fromonshore

Topside gross dry weight: 4 500t

10

Absheron Time Line • Development Program submission by end 2015

• Final investment Decision by Q4 2017

• Spud of development well by Q4 2018

• First Gas by End 2021/Beginning 2022

• Critical path:

• Securing a Rig for development (ongoing).

• Securing a gas marketing package allowing an economic project

(ongoing)

11

Advisors and Specialists

• Societe Generale , PricewaterhouseCoopers, OMNI, Clifford Chance, AECOM.

Purvin&Gertz, CMAI, Intertek

• Geophysical, geotechnical and hydrological studies carried out by Fugro.

Oil and Gas Processing and

Petrochemical Complex

(OGPC).

Located :60 km south from Baku covering 4500 ha. on the

border of Garadagh and Absheron regions (near

Sangachal terminal).

• Phase 1 EPCm contract awards: 2016

• Complex will be commissioned on a phased basis:

• 2020-2024

• Expenditure: US $17 billion capital expenditure

• OGPC Components

• Gas Processing Plant (GPP) – annual capacity of

approximately 12 BCMA

• Refinery (REF) – with initial crude distillation capacity

of 8,5-9 MTA

• Petrochemical Plant (PETR) – with annual capacity of

1,1 million tons

• CUOS (Central Utilities off Sites)

SOCAR-

Amec FW

Engineering LLC

• Phase 1 FEED: GPP,

PETR, REF, CUOS

• Training

KBR

PMC for FEED

Fluor

Project Management

FEED /EPCm

Technology selection

( UOP)

• Other Downstream Investments:

• Sumgait Petrochemical Plant

• Fertilizers

• Petkim Refining

12

UKTI Azerbaijan HVO Programme Delivered Through

• Unique cooperation with SOCAR , BP (with the participation of Total )

The UK Azerbaijan Partnership Programme

Launched in Baku Nov 2015:

• Niyazi Safarov Deputy Minister of Economy and Industry

• Rovnag Abdullyev ,Socar President

• Gordon Birrell BP’s Regional President for Azerbaijan,

Georgia and Turkey

• Irfan Siddiq, Her Majesty’s Ambassador in Baku

• Tahir Taghizade, Ambassador of the Republic of Azerbaijan

to the United Kingdom of Great Britain and Northern Ireland

• Establishment of a UK Azerbaijan working group to:

• Secure relationship with investors, operators, local supply chain companies

• Promote UK company capabilities (in the low cost environment)

• Support UK interests- commercial, fiscal, legislative investment environment

Working Group UK companies will include:

Main contractors, Manufactures, Oil field Services, Fabrication, Specialist

Initial Focus

Maintenance and Operational Support

Manufacturing and Fabrication

Vocational Training

17

Opportunities • First half of 2014 crude oil production: 845,000

barrels of oil per day

• 2013 proven oil reserves: 7 billion barrels 2013

• gas production: 16.2 bcm (572 bcf)

• 2014 proved gas reserves: 991 bcm (35 tcf)

Southern Gas Corridor Project

Investment amounts to US$ 26.5 billion for the

offshore facilities plus US$ 12. billion for the TANAP

pipeline system (multiple compressor and metering

systems), TAP in the order for US$ 5.3 billion.

Shah Deniz 2 gas will provide the early exports via

this route and with other large gas prospects to follow

Source: Azerbaijan Oil & Gas Year Book 2015

Amec FW

Amec Tekfen (ATA)

• MSA – Shah Deniz 2

• Offshore Brown Field

Engineering(EMS)

KBR

Detailed engineering

& procurement

support –

Shah Deniz 2

Worley Parsons

TANAP

EPCM

18

Opportunities

ACG deep gas (deep reservoir-lying under

the oil formation), - possible investment in

the order of US$ 12 billion

Aspheron Stage 1, Alov Sharg, Block 1 -

possible investment in the order of US$ 17

billion

Umid Gas / Condensate Field (with

satellites Babek, Mashal ) – major gas

project (200 bcm reserves ) -investment in

the order of US $ 16 billion

Onshore re –assessment - Conoco Philips

and SOCAR new seismic E&A programme-

more onshore oil possible.