WE BUILD TRUSTIssue 19 - Q4 / 2018RHI Newsletter

The first Work Safety Site visit of 2019, Russia

Petrochemical Plant in Ceyhan, Turkey

Singing the contract for LNG 2 Facility in Murmansk, Russia

9 M Manhours Without LTI, Russia

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Renaissance Construction leads as a “Company with the largest number of employees”

New Year Celebrations at RHI’s Headquarters

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ONHP Conference, Russia

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1. AWARD NEWS• RHI to build the Arctic LNG 2 Facility in Murmansk, Russia• RHI to build Zerger Natural Gas Power Plant in the Chardzhev district of Lebap province in Turkmenistan

2. INVESTMENTS• Renaissance Heavy Industries to build a petrochemicals plant in Ceyhan with an investment cost of $1.2 billion / Turkey

3. EVENTS• Omsk, Russia – ONHP Conference• Asgabat, Turkmenistan – Turkmenistan International Oil and Gas Conference and Exhibition

4. NEWS FROM SITES• RHI shipped the mega drilling rig across the Bosphorus Strait for the BOTAŞ Project, Turkey’s first underground storage for natural gas / Turkey• Gas-to-Gasoline Plant Project: Pre-Commissioning and commissioning works have started / Turkmenistan

5. QHSE – NO COMPROMISE• Amur GPP: The First Safety Site visit of 2019 / Russia• Eurochem Uzsolsky Potash Plant Project: 9 million manhours without LTI / Russia

6. RÖNESANS HOLDING NEWS• Renaissance Construction leads as a “Company with the largest number of employees”• Rönesans Holding is one of the largest Turkish exporters of services

7. SOCIAL LIFE• New Year Celebrations at RHI’s Headquarters

BOTAŞ, Kuzey Marmara Natural Gas Storage Project, Turkey

Zerger Natural Gas Power Plant, Turkmenistan

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Award News

Arctic LNG 2 is a subsidiary of Russia’s natural gas giant, Novatek. It has chosen SaRen, the company established jointly by RHI and Saipem of Italy with a 50% partnership, to carry out the manufacturing, transport, and assembly works for the three components of the Gravity Base Structure (GBS) of the Arctic LNG 2 Terminal Project. Contracts worth over 2.0 billion euro have been signed.

The three large GBS components, with dimensions of 324 × 152 × 30 m, will be used for the storage of liquefied natural gas (LNG) which will be taken from three LNG production lines, each with a capacity of about 6.6 million tons per year.

The engineering and procurement work has already started. Construction will commence in June 2019. The first of the three GBSs is planned to be commissioned in 2023, and all commissioning works will be completed by May 2026.

After the modules and superstructures are added by the other EPC module manufacturing contractor to the blocks to be

The main contract for the Zerger Power Plant Project was signed by and between the Sumitomo Corporation and the Turkmenenergo State Power Corporation in 2015, during a visit to Turkmenistan by the Japanese Prime Minister, Shinzo Abe. The EPC contract between RHI and Sumitomo Corporation was signed in 2016. A groundbreaking ceremony for the project was held on November 21, 2018. It was attended by the Turkmenistan Minister of Energy and Turkmenenergo State Power Corporation officials, as well as many Turkmenistan statesmen, representatives of Sumitomo Corporation - the main contractor and Mitsubishi Hitachi Power Systems (MHPS) - the manufacturer of the turbines supplied to the project. Dr. Erman Ilıcak, RHI President Alptekin Tizer, RHI Vice President Kaan Alkan, Turkmenistan Country Manager Mehmet Kayalar and Project Manager Ceyhun Filiz attended the ceremony on behalf of RHI. The event featured national songs, dance compositions and sports performances based on traditions of Turkmenistan.

RHI TO BUILD THE ARCTIC LNG 2 FACILITY IN MURMANSK / RUSSIA

RHI TO BUILD ZERGER NATURAL GAS POWER PLANT IN CHARDZHEV DISTRICT OF LEBAP REGION, TURKMENISTAN

The project capacity is 432 MW. Three gas turbines, each with a capacity of 144 MW, will be manufactured by MHPS. Turkmenistan has previously used gas turbines manufactured by GE made in USA in its power plant projects. With this project, Japanese turbines will be used in Turkmenistan for the first time.

Gravity-based structure (foundation) is a support structure held in place by gravity. Offshore gravity-based structure (GBS) is a platform held at the seabed due to its own weight and the connections of the lower part of the platform to the seabed.

DETAILS

constructed in the dry pools in Murmansk, the blocks will be floated and mounted in their place in the Gydan area, in the Arctic Circle.

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Investments

RHI TO BUILD A PETROCHEMICALS PLANT IN CEYHAN WITH AN INVESTMENT COST OF $1.2 BILLION / TURKEY Rönesans Holding has partnered with Algerian national energy company Sonatrach to develop a polypropylene production plant in Turkey, with a $1.2 billion investment. It is in the Ceyhan Mega Petrochemistry Industry Zone.

The proposed facility, which will be the first investment in the area, will feature a production capacity of 450,000 tonnes. Set to become operational in 2023, the facility will reduce Turkey’s current deficit by $450 to $500 million each year.

The contract for the development of the polypropylene production facility, a joint investment by Rönesans Holding and Sonatrach, was signed by Dr. Erman Ilıcak and Sonatrach CEO Abdelmoumen Ould Kaddour on November 28, 2018 in a ceremony attended by Mustafa Varank, the Republic of Turkey’s Minister of Industry and Technology.

Events

OMSK, RUSSIAONHP CONFERENCERHI Vice President Ahmed Abdullayev attended the IX International Research and Engineering Technology Conference, “Digital Transformation – Innovation Driver and Key to Effective Management”, which was held on December 6, 2018 in Omsk, Russia.

The conference was held at ONHP’s initiative and with the support of Omsk Regional Government. Delegates representing more than 50 companies from Russia, the USA, Italy, Serbia, Turkey, China, Kazakhstan and Uzbekistan attended the conference.

The discussion topics included digitalisation tools, the modernisation of oil and gas production and processing, and EPC project management.

PAO ONHP is a leading Russian engineering company. ONHP designs in compliance with international and European standards (ASME, API, DIN, ANSI, EN) and adapts projects to Russian requirements. The company is c apable of solving any technological task in the field of oil refining, petrochemicals, gas refining, gas chemistry, and general chemistry. Since 1953, ONHP specialists have designed more than 3,500 industrial facilities.

ABOUT PAO ONHP

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Issue 19 - Q4 / 2018RHI NEWSLETTER

Events

RHI, which is undertaking the engineering, procurement and construction (EPC) of the Kuzey Marmara Natural Gas Storage Project of BOTAŞ, successfully shipped a huge jack-up drilling rig across the Bosphorus Strait. Once the project has been completed, it will become Turkey’s biggest natural gas storage and processing facility.

Rigs such as this can be operated in waters about 100 meters deep and can lift themselves up to 15 meters above the surface of the water. By this means, boreholes can be drilled without the rig being affected by heavy waves and severe storms.

Within the scope of the project, 20 natural gas wells are to be drilled, two of which will be used for observation and detection purposes. The construction of fixed sea drilling rigs is continuing for the boreholes to be located about 2 km from the coast. The length of each of the boreholes, which will be located in water depths of about 25–45 meters, will extend 1,800 meters below the sea bottom.

The project, where approximately 1,400 people are employed, is expected to be completed and commissioned in the first quarter of 2021. Once the project has been completed, Turkey will gain a natural gas storage capacity of about 3.7 billion m3 under the sea.

RHI shipped the mega drilling rig across the Bosphorus Strait for the Botaş project, Turkey’s first underground storage for natural gas

WATCH THE VIDEO

ASGABAT, TURKMENISTANTURKMENISTAN INTERNATIONAL OIL AND GAS CONFERENCE AND EXHIBITIONRHI Turkmenistan took part in the 23rd International Conference and Exhibition, “Oil and Gas of Turkmenistan 2018” (OGT 2018), held on November 20–22, 2018 in Ashgabat. The annual conference is organised by the state concern, Turkmennebit, and the Chamber of Commerce and Industry of Turkmenistan.

The exhibition provides a platform to demonstrate the achievements of the oil and gas industry of Turkmenistan to

the world community, to gather information on investment directions in the oil and gas sector, and to introduce the future priorities in the development of the oil and gas industry of Turkmenistan.

One of the major objectives of OGT is to offer a stage for discussion of issues related to diversification of the export of hydrocarbons and development of the country’s oil and gas industry, as well as the promotion of international cooperation.

New From Sites

BOTAŞ, KUZEY MARMARA NATURAL GAS STORAGE PROJECT, SILIVRI, TURKEY

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The President of Turkmenistan Gurbanguly Berdimuhamedov visited one of the most important industrial sites - the Gas-to-Gasoline plant in Ahal Region of Turkmenistan on January 10, 2019.

RHI has completed construction of administrative and non-process buildings. Test runs of water treatment, steam and power generation systems have also been carried out. Pre-commissioning and commissioning works have started and completion of the project is scheduled for the end of June 2019.

VISIT OF PRESIDENT OF TURKMENISTAN TO GAS-TO-GASOLINE PLANT PROJECT, AHAL REGION, TURKMENISTAN

New From Sites

Administration Building

Central Control Building

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QHSE - No Compromise

RHI’s President, Russia/CIS Mustafa Kemal Özakay, and CEO, Russia/CIS Hakan Malta, visited the Amur GPP Project located in the Amur Region of Russia.

They met with RHI HSE manager and employees and were updated on the current status of HSE. It is the first safety walk down conducted by RHI Russia board members in 2019.

We are proud of HSE milestone reached on Eurochem Usolsky Potash Plant Project: 9 M Man-hours without LTI.

Eurochem Usolsky Potash Plant located in Russia, Perm Krai has surpassed a milestone as of 28.12.2018 when %96.01 of the Project has been completed.

The Project is scheduled to be completed in 2019, expected capacity will be 2,300,000 Ton Potash annually.

AMUR GPP: THE FIRST SAFETY WALK DOWN OF 2019

EUROCHEM USOLSKY POTASH PLANT PROJECT: 9 M MANHOURS WITHOUT LTI

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Issue 19 - Q4 / 2018RHI NEWSLETTER

Rönesans Holding News

RÖNESANS HOLDING IS ONE OF THE LARGEST TURKISH EXPORTERS OF SERVICES

RENAISSANCE CONSTRUCTION LEADS AS A “COMPANY WITH THE LARGEST NUMBER OF EMPLOYEES”

At the award ceremony of the “500 largest Exporters of Turkish services”, organised by the Turkish Exporters Assembly (TIM), Rönesans Holding was named as the seventh-largest Turkish exporter of services and the second-largest exporter of contracting services.

The ceremony was held with the participation of President Recep Tayyip Erdogan. The award, was received by a Member of the Board of Directors of Rönesans Holding, Ferit Seyfi Yağmuroğlu.

Capital magazine recently presented awards in a number of categories, after conducting a study of the 500 largest firms in Turkey and evaluating them on such parameters as turnover, profit, exports, and job creation.

This year, 23 companies received awards in nine categories.

Renaissance Construction managed to get ahead of its competitors in the construction industry and take second place

in the category of “Companies with the largest number of employees”. First place went to the food retail giant, BIM, and third place went to LC Waikiki Store, one of the key names in clothing retailing.

On behalf of Rönesans Holding, this important award was received by Kamil Akın, the President of REC International and Rönesans Enerji.

8“Renaissance” is the registered brand name of Rönesans Holding.

“Renaissance Heavy Industries” and “RHI” are registered brand names of Rönesans Endüstri Tesisleri İnşaat San. ve Tic. A.Ş.

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