WE BUILD TRUSTIssue 17 - Q2 / 2018RHI Newsletter

Chairman of SIBUR’s Board of Directors visited ZapSib-2 ECU Project

RHI President Alptekin Tizer Visits The BOTAŞ Northern Marmara UGS Project, Turkey

RHI acquires certificates of completion for TACE Ethane Cracker and PE/PP Plant, Turkmenistan

RHI has signed subcontract agreement with Tecnimont Russia LLC, amounting to over € 1.3 Billion

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RHI performs CDU complex construction at the Gazprom Neft Omsk Refinery, Russia

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New horizons for Karchaganak Expansion Project: Breakfast at KazService, Kazakhstan

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RHI to build Crude Oil Gathering and Processing Facilities Project, Algeria

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1. AWARD NEWS• Renaissance Heavy Industries (RHI) to build AMURSKY Gas Processing Plant (AGPP) for Gazprom• RHI performs CDU complex construction at the Neft Omsk Refinery• RHI to build Crude Oil Gathering and Processing Facilities Project in Algeria

2. COMPLETED PROJECT• RHI acquires certificates of completion for TACE Ethane Cracker and PE/PP Plant in Turkmenistan

3. EVENTS• Rönesans Holding enters into four agreements at the St. Petersburg International Economic Forum (SPIEF)• New horizons for Karchaganak Expansion Project: Breakfast at KazService in Kazakhstan

4. NEWS FROM SITES• RHI President Alptekin Tizer visits the BOTAŞ Northern Marmara UGS Project• GTG: Dr. Erman Ilıcak says we will fulfill our obligations • Chairman of SIBUR’s Board of Directors visited ZapSib-2 ECU Project• Yamal LNG Project: Achieved a 98% progression

5. GEOGRAPHICAL EXPANSION• Rotterdam/Netherlands - BNI’s CEO, Ronaldo Franken: ‘without RHI’s support, this successful growth would not have been possible’

6. QHSE - NO COMPROMISE• RHI got aworded Safety Flag at TouatGaz Main Process Plant in Algeria

7. SOCIAL LIFE• Renaissance Heavy Industries, established on 1 April 2011, is seven years old

8. RÖNESANS HOLDING NEWS• Ballast Nedam, the company of Rönesans Holding, and TAV were awarded the Schiphol Airport additional terminal contract

9. ADVERTISING• Special opportunity for RHI partners:NEVATOWERS, Moscow/Russia

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RHI, established on 1 April 2011, is seven years old

GTG: Dr. Erman Ilıcak says we will fulfill our obligations

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Award News

RHI SIGNS SUBCONTRACT AGREEMENT WITH TECNIMONT RUSSIA LLC

RHI PERFORMS CDU COMPLEX CONSTRUCTION AT THE NEFT OMSK REFINERY

The scope of works covers civil, structural, piping, mechanical, electrical, instrumentation and pre-commissioning activities, including the major part of the construction works of Package 3.

The agreement was signed at the St. Petersburg International Economic Forum (SPIEF, 2018) by Erman Ilicak, Rönesans Holding President, and Pierroberto Folgiero, CEO of Maire Tecnimont Group. Also in attendance were: Alexey Miller, CEO of Gazprom Group; Fabrizio Di Amato, Chairman of Maire Tecnimont; and Pasquale Terracciano, Italian Ambassador to Russia, along with other Russian and Italian officials.

AGPP will become Gazprom’s biggest gas processing plant, and one of the largest of its kind in the world. The planned production is of 42 billion cubic meters of natural gas per year. The GPP will produce ethane, propane, butane, and pentane-hexane fractions along with natural gas. The plant will become an essential part of the processing chain in future supplies of natural gas via “The Power of Siberia” gas pipeline to China.

RHI and Gazprom Avtomatizatsiya PJSC have entered into an agreement for the construction of CDU (a crude oil distillation unit) complex facilities, which are being built throughout the second stage of the Neft Omsk Refinery’s large-scale modernization programme. Under the agreement, RHI will perform installation and construction works and supply some of the materials for the facility. The works listed in the agreement are planned to be completed by the end of 2019.

The mobilization of a modular camp has been completed by RHI at the construction site. The foundation and pre-erection works of the large-scale equipment are being performed. At the peak activity period, there will be 1,600 construction workers on site.

The CDU complex is set to become one of the most significant crude oil refining facilities in Russia, with the capacity to process 8.4 million tonnes of oil and 1.2 million tonnes of gas condensate per year.

The new CDU complex will comprise six sections, including a separate gas condensate processing unit, allowing an increase in the volume of gas condensate processed, plus additional volumes of condensate in the production of Euro-5 gasoline, diesel fuel and aviation fuels.

On 25th May 2018 the AGPP construction subcontract agreement was signed between RHI and Tecnimont Russia LLC, amounting to over €1.3 billion.

The Gazprom Neft Omsk Refinery, a subsidiary of Gazprom Neft, is one of the most advanced refining facilities in Russia, as well as is one of the most significant in terms of total refining volumes. With a total installed capacity of 21.4 million tonnes (including one million tonnes of gas condensate), the Omsk Refinery is one of the top twenty largest refineries in the world.

The main technological processes used at the Omsk refinery are deionisation and dehydration of oil, crude oil distillation, catalytic cracking, sulphuric acid alkylation, catalytic reforming, isomerization and the hydro-treatment of gasoline and diesel fuels, and the production of aromatic hydrocarbons.

DETAILS

Dr. Erman Ilıcak-Rönesans Holding President, Pierroberto Folgiero-CEO of Maire Tecnimont Group

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Completed Project

RHI ACQUIRES CERTIFICATES OF COMPLETION FOR TACE ETHANE CRACKER AND PE/PP PLANT IN TURKMENISTAN In May 2018, RHI acquired certificates of completion from EPC contractor Hyundai Engineering Company (HEC), which was carrying out EPC works jointly with Toyo Engineering at the Kiyanly Petrochemical Complex in Turkmenistan.

RHI signed a contract with HEC for the construction of the following units of the TACE Ethane Cracker and PE/PP Plant:

• Gas Separation Unit (GSU): 5 BCMA gas feed;• Ethane Cracker Unit (ECU): 685 kTA ethane;• High Density Polyethylene Unit (HDPE): 386 kTA;• Onshore and Offshore Works of Sea Water Intake Facility.

RHI performed civil works, steel structure erection, piping and equipment erection of the units in time.

RHI has signed a contract with JGC (JGC Algeria) for the construction of crude oil gathering and processing facilities owned by Sonatrach, the Algerian state-owned oil and gas company.

Sonatrach is seeking to develop new oil sources in the north of the Hassi Messaoud district. RHI will be responsible for the construction of gathering facilities for crude oil produced from new producing wells in the area, and also a crude oil processing facility which will separate oil, gas and water, with a capacity of 40,000 bbl/day. The facilities are expected to be completed in 40 months.

Award News

RHI TO BUILD CRUDE OIL GATHERING AND PROCESSING FACILITIES PROJECT IN ALGERIA

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Events

RÖNESANS HOLDİNG ENTERS INTO FOUR AGREEMENTS AT THE ST. PETERSBURG INTERNATIONAL ECONOMIC FORUM (SPIEF)

NEW HORIZONS FOR KARCHAGANAK EXPANSION PROJECT: BREAKFAST AT KAZSERVICE IN KAZAKHSTAN

Rönesans Holding has drawn attention with the four agreements signed at the St. Petersburg International Economic Forum (SPIEF), which was organized for the 22nd time this year and is also more informally known as the Davos of Russia.

The forum, attended by the Russian President Vladimir Putin, the French President Emmanuel Macron, the Japanese Prime Minister Shinzo Abe and the IMF President Christine Lagarde, hosted many senior managers from more than 100 countries.

Rönesans left its mark on the forum by concluding agreements for the Amur Gas Processing Plant, and with Sberbank, Moscow Regional Administration, and St. Petersburg tramway.

Rönesans Holding signed a letter of intent to determine the steps to be taken for the construction and use of the Yuniy transfer station of St. Petersburg, and the Yujnaya subway station and Kolpino tramline project. The project, which is planned to have a total investment of 20 billion rubles (approx. USD 325 million), is planned to start in 2019 and to be completed in 2023.

Rönesans İnşaat, the sister company of RHI, also signed an agreement with Moscow Regional Administration. The Moscow region is one of the foremost regions of Russia with its potential for high economic and social development. As Rönesans Group Companies, we are not just a construction company; we also have important experience in the region in

June 26, Kazakhstan – RHI’s Vice-President and Executive Board Member Ahmed Abdullayev, took part in a meeting “without ties”, of a type held regularly by Kazservice (the union of oilfield service companies of Kazakhstan). Foreign and Kazakh contractors were invited to the meeting to discuss the situation in the domestic oilfield services industry; namely, the search for opportunities in the Karachaganak Expansion Project.

The meeting is significant in that it was attended by assigned high-level management of Karachaganak Petroleum Operating (KPO) company.

In March, at the Kazneftegazservice 2018 conference, KPO announced that in order to develop local content, it would introduce lists of equipment and scopes of work for which the general contractor should hold tenders among local companies only.

RHI is interested in participation in petrochemical and metallurgical projects in Kazakhstan. At the moment, the company is implementing a project for KazZinc company for the construction of Zhayremsky GOK the beneficiation plant.

terms of investment. With this agreement with the Moscow Regional Administration, cooperation can be built with a view to attracting extra budgetary investments for the performance of health services projects and for the construction of offices and hotel complexes.

At the Forum, an important agreement was also signed with Sberbank. Rönesans Group, within the framework of this agreement, will have the opportunity to benefit from the experience and know-how of Sberbank’s Corporate University in terms of investment banking and financing activities, and within the framework of strategic business associations and different programs.

From RHI, President Alptekin Tizer, Sr. Vice-President Mustafa K. Ozakay, Vice-President, BD Ahmed Abdullayev, and Vice-President Russia Fevzi Baskan all attended.

Dr. Erman Ilıcak-Rönesans Holding President, Pierroberto Folgiero-CEO of Maire Tecnimont Group

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News From Sites

In June 2018, RHI President Alptekin Tizer and Vice President Mustafa Karakuş visited the construction site of the Botaş Northern Marmara Underground Gas Storage (UGS) Project, located in Silivri, and inspected the current construction of site offices, camp buildings, and related mobilizations.

The office and staff dorm, recreation buildings, dining halls, infirmary, ISG training hall, laundry rooms, the first workers’ dorm, LNG boiler house, water tanks, and the cesspool system works started in April 2018 have all been completed.

Construction continues of the pipe spool manufacturing workshop, dyehouse, warehouses, stock areas, precast and iron processing areas, and the repair area.

In the project, both onshore and offshore design work will be performed by the RHI design office.

On June 23, 2018, Leonid Mikhelson, Chairman of SIBUR’s Board of Directors and Co-Owner of Russian gas producer Novatek, visited the ZapSib-2 EP-1500 Ethylene Cracker Unit site in Tobolsk, Rusisa.

He met with Mr. Alptekin Tizer, President of Renaisance Heavy Industries and other Management Team of Renaissance Heavy Industries Russia and they were updated on the current status of the construction.

Being our 3th work with SIBUR, the plant construction is planned to be completed in 2019.

RHI PRESIDENT ALPTEKİN TİZER VISITS THE BOTAŞ NORTHERN MARMARA UGS PROJECT

CHAIRMAN OF SIBUR’S BOARD OF DIRECTORS VISITED ZAPSIB-2 ECU PROJECT

GTG: DR. ERMAN ILICAK SAYS WE WILL FULFILL OUR OBLIGATIONS Turkmenistan President Gurbanguly Berdimuhamedov received Dr. Erman Ilıcak during his visit to the country.

Dr. Erman Ilıcak, who presented his birthday wishes to the Turkmen leader, stated that all his commitments given earlier would be fulfilled. In particular, he said of the Gas-to-Gasoline (GTG) project that all the works under the agreement would be completed without sacrificing high quality. This is a high-technology, environmentally friendly project with an annual production capacity of 600,000 tons. Construction will be completed within this year.

RHI, which left its “signature” on the world’s largest plant producing gasoline from gas, is preparing to complete the plant being realized in a consortium with Kawasaki Heavy Industries Ltd.

The precommissioning process, which has reached 45% progress, continues successfully. So far, the plant air, water treatment, raw water treatment, fire water system and water intake units have been commissioned, and the commissioning processes of these units are continuing. As of June 2018, commissioning has started on the boiler units of 80 ton/hour and 160 ton/hour capacity.

Roman Kutsenko-Project Manager, Mustafa K. Ozakay-CEO & Vice President-Russia, Dmitiy Ham-Project Director, Leonid Viktorovich Mikhelson-Chairman of Sibur and Co-owner of Novatek, Erdem Eryildirim-COO-Russia, Alptekin Tizer-President, Hakan Malta-CEO

Tecnicas Reunidas (TR), the main contractor of the TouatGaz Main Process Plant project in Adrar (Algeria), evaluates the project site labor safety every month, selects the most successful subcontractor, and rewards them with TR’s SAFETY FLAG. The results are calculated according to the following criteria: • Risk Assessment, • Inspections, • ToolBox Talk TBT, • Housekeeping, • Supervision, • Motivation, • Traning, • Documentation. In June, this valuable prize became RHI’s.

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In May 2018, Dr Erman Ilıcak paid a visit to the new office of Ballast Nedam Industriebouw (BNI) in Rotterdam, which was opened in 2017. BNI continues its activities in the Netherlands and Belgium.

Dr Erman Ilıcak, having liked the building where the office is located, its location, and the interior decoration which has the common traits of BNI and RHI, also went to the manufacturing workshop established beside the office, and after his examination, stated that he was very proud.

Dr Ilıcak described his wishes for these two companies to sign for new works together in the future.The transformation of BNI into a contracting company that quadrupled its turnover within four years and made civil packages in industrial projects (all contracting services includ-ing civil, mechanical and electrical) was the main topic of the meeting with the BNI management.

BNI’s CEO, Ronaldo Franken, mentioned that without RHI’s support, it would not have been possible for this successful growth to happen.

News From Sites

Geographical Expansion QHSE-No Compromise

‘WITHOUT RHI’S SUPPORT, THIS SUCCESSFUL GROWTH WOULD NOT HAVE BEEN POSSIBLE’

Rotterdam/Netherlands RHI GOT AWARDED SAFETY FLAG AT TOUATGAZ MAIN PROCESS PLANT IN ALGERIA

The Yamal LNG Project, undertaken by RHI’s joint venture, REGA JV, has achieved 98% general progress.

The first stage of the project has been completed and the first liquefied natural gas production (“First LNG Drop”) started on 6 November 2017. The site is located in the Arctic Circle, and on December 8, 2017, with the participation of the President of the Russian Federation, Mr. Vladimir Putin, and representatives of the sponsoring countries, the first product started to be carried to distribution points with “the world’s first ice-cracking LNG tanker”.

YAMAL LNG PROJECT: ACHIVED A 98% PROGRESSION IN GENERAL

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Issue 17 - Q2 / 2018RHI NEWSLETTER

Rönesans Holding News

The employees at RHI Head Office gathered at lunch at a restaurant and celebrated the seventh anniversary at the company.

RHI President Alptekin Tizer and General Manager N. Celal Toroğlu announced in their speeches that we had been awarded the Gazprom Amursky Gas Processing Plant Project in addition to the Botaş Northern Marmara Natural Gas Storage Expansion Project.

They also thanked all employees for their dedication in this process.

Social Life

RENAISSANCE HEAVY INDUSTRIES, ESTABLISHED ON 1 APRIL 2011, IS SEVEN YEARS OLD

BALLAST NEDAM, THE COMPANY OF RÖNESANS HOLDING, AND TAV WERE AWARDED THE SCHIPHOL AIRPORT ADDITIONAL TERMINAL CONTRACTBallast Nedam, the subsidiary of Rönesans Holding, and TAV, have been awarded the Schiphol Airport additional terminal contract.

Ballast Nedam and TAV won the Royal Schiphol Group’s tender for an additional terminal building at Amsterdam Schiphol Airport. The Royal Schiphol Group has, within the framework of the tender, awarded the joint venture the construction of both landing sites and airplane parking spaces. To the north of the new landing sites, with an area of 55,000 m2 to be constructed as part of the expansion works, there will be five gates for narrow-body aircraft and three gates for wide-body aircraft. Later on, two more wide-body doors will be added to the south side.

Biomaterials, insulated glass and recycled plastic and untreated marble stones are to be used in the construction of the additional terminal building at Schiphol. The building will also have a 5,000 m2 solar panel, and rainwater will be used for cleaning purposes. The new terminal building will bear all the features a terminal should have, such as security checkpoints, border control, stores, and food and drink areas. In the three-storey building, passengers subject to different border and safety rules will be kept separate from each other. As a result, the new terminal building can be used for passengers going to and coming from Schengen countries, passengers traveling intercontinental, and passengers from countries that do not comply with the relevant European legislation on safety scanning.

Issue 17 - Q2 / 2018RHI NEWSLETTER

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.