May 2008
1
TRANSBALKAN PIPELINE B.V.TRANSBALKAN PIPELINE B.V.HELPE – THRAKI A.E.
Christos DimasGeneral Manager
HELPE – THRAKI A.E.The Originator and Greek
Shareholder of the BAP Project
The Developments in the Transportation of Oil from Russia and the Caspian Sea Region
andThe Burgas – Alexandroupolis (BAP)
Oil Pipeline Project
International Conference“2nd South East Europe Energy Dialogue”
Thessaloniki, 21 – 22 May 2008
INSTITUTE OF ENERGYFOR SOUTH-EAST EUROPE
May 2008
2
Russian and Caspian Main Crude Export Routes
Taishet
Dqing
Baku-
LegendMajor Oil basins
Barents Sea
Timan Pechora
East Siberia
West Siberia
Caucasus & Caspian
Volga Urals
Sakhalin
Tengiz
May 2008
3
May 2008
4
May 2008
5
Russian and Caspian Main Crude Export Routes
TaishetScovorodino
Daqing
Kozmino
Primorsk
Murmansk
Alashankou
Atasu
KumkolKenkiyak
Baku
Novorossiysk
Ceyhan
Burgas-Alex/lis
LegendExisting crude pipelines
Planned crude pipelines
Major Oil basins
Barents Sea
Timan Pechora
East Siberia
West Siberia
Caucasus & Caspian
Volga Urals
Far East &Sakhalin
Tengiz
Odessa
Supsa
May 2008
6
May 2008
7
Karatschaganal
6
Kazakhstan’s Crude Oil Export Routes
HELPE – THRAKI A.E.
Existing Soviet-era pipeline
Existing Soviet-era pipelineSupplying China with Russian oil
Aktau
Baku
To Neka
Makhachkala
Uzen
Kashagan
Mangistau
Karatschaganal
May 2008
Kurmangazy
Augusta
Trieste
Omishali
Brody
Feneshlitkye
Unecha
Odessa
Constanta
BurgasAlexandroupolis
Ceyhan
Baku
Supsa
Novorossiysk
Tengiz
Samara
Tscheljabinsk
from Surgut
ToUS-Market
Sisak
Plotsk
Gdansk
existing pipelineplanned pipelineTanker transport
Vlore
Aktau
Kashagan
Karatschaganak
Makhachkala
Tehran
Tikhoretsk
Batumi
CPC Pip
eline
OVERVIEW MAPOVERVIEW MAPCRUDE CRUDE OILOIL EXPORTEXPORTCHAINSCHAINS
Atyrau
Neka Port
Tuapse
A. C. G.Mega Structure
Oil Field
Augusta
Trieste
Omishali
Brody
Feneshlitkye
Unecha
Odessa
Burgas
Alexandroupolis
Ceyhan
Baku
Supsa
Novorossiysk
Tengiz
Samara
Tscheljabinsk
from Surgut
ToUS-Market
Sisak
Plotsk
Gdansk
Vlore
Aktau
Kashagan
Karatschaganak
Makhachkala
Tehran
Tikhoretsk
Samsun
Atyrau
Neka Port
Tuapse
A. C. G.
Balti
c
Sea
Primorsk
Kurmangazy
VentspilsButing
Mega Structure
Constanta
Azerbaijan’s Crude Oil Export Routes
8
May 2008
9
OIL CONCENTRATION IN THE BLACK SEAAND THE BOSPORUS STRAITS
TRANSBALKAN PIPELINE B.V.HELPE – THRAKI A.E.
May 2008Balance of crude oil flow shipped through the Black Sea and the Bosporus Straits during 2007(Million Metric Tons)
Youzhnaya OzereevkaNovorossiysk
Tuapse
Georgian Ports
Youzny
Feodosiya
Total Crude Oil Shipped105.8
10
Legend32,6 / 32 – Actually mln tons shipped in 2007 / Terminal throughput capacity mln tons / year
10
May 2008
11
0
20
40
60
80
100
120
140
160
0
2,000
4,000
6,000
8,000
10,000
12,000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Tankers
HazardousCargo
No. of Tankers Million tons of hazardous cargo
Source: Turkish Marine Research Foundation
Number of Tankers and Volume of Hazardous Cargo (Crude oil + Products) Transiting the Bosporus Straits
May 2008
12Source: Inchcape Shipping Services-Turkey
5.2
10.7
16.918.6
12.3
3.5
6.94.9
6.44.3
2.13.4
10.812.0
8.0
2.64.2
7.5
11.210.0
3.3
6.3 5.73.1
5.4
3.2
7.9
9.5
11.4
5.5
3.1
5.1
3.5
4.5
3.3
1.7
3.0
8.7
9.6
8.1
2.7
4.1
5.6
10.7
7.8
2.5
5.5 5.8
2.9
4.5
0123456789
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Oct.03
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Days
Actual Monthly Average Tanker Delays in the Straits - Winters(Net waiting time of tankers > 200 m LOA passing in transit - Round trip)
S/B DelaysN/B Delays
20,3 d
9,1 d
13,5 d
Traffic system improvements applied in the Straits since Nov. 2004
13,3 d 9 d
May 2008
13
BYPASSING ALTERNATIVES AND
THE BURGAS – ALEXANDROUPOLISOIL PIPELINE PROJECT
TRANSBALKAN PIPELINE B.V.HELPE – THRAKI A.E.
May 2008
14
BLACK SEA CRUDE OIL EXPORT PIPELINE ALTERNATIVES
A. Odessa – Brody –Baltic Sea
B. Constantza –Trieste
C. Burgas – Flore
D. Burgas –Alexandroupolis
E. Kiykoy – Ibrice
F. Samsun - Cheyhan
May 2008
15
WHY THE BURGAS – ALEXANDROUPOLIS PIPELINE?
TRANSBALKAN PIPELINE B.V.HELPE – THRAKI A.E.
May 2008
16
1. Cost Efficiency2. Diversification of Routings3. Political Risks
a. Political stability of territoryb. Political support
4. Technical & Technological Risks5. Environmental Risks6. Viability and Financial Risks
a. Oil availability and guaranteesb. Legal and economical governmental commitments. c. The transport cost to be financially comparable with
the existing through the Straits routing.
CRITERIA FOR SELECTING THE MOST SUITABLE BYPASS ALTERNATIVE
May 2008
Single PointMoorings
Single PointMoorings Shore FacilitiesShore Facilities
AlexandroupolisTerminal
AlexandroupolisTerminal
BLACKSEA
Mainline 36“Mainline 36“
MEDITERRANEAN SEA
Bulgaria
Turkey
Greece
AbasAlexandroupolis
APPROVEDAPPROVEDREV.
SCALE
SUBCONTRACTOR:
ENGINEERING CONTRACTOR:
CONTRACT NO: 94001-2A:
PROJECT:
CLIENT:
0
PROJECT DRAWING NO SHEET
DRAWING TITLE:
DATE ISSUE, SCOPE OF REVISION PREPARED CHECKED
Joint Venture DEP S.A./THRAKI S.A.
Burgas-Alexandroupolis Oil Pipeline Project
2nd Stage Study (Basic Design)
ILF CONSULTING ENGINEERSArabellastr. 21, D-81925 Munich
3436 1 of 1
Pipeline Routes and Facilities Map 1:1.000.000
II - DW - AL - AL - 010043 - 0
10.12.01 First Issue (For Presentation of the Project) Buchauer
approx.1:1 Mio.
Millim Heinz
Loading LinesLoading Lines
Pumpstation 2 of Alternative A
Pumpstation 2 of Alternative A
Burgas
Burgas Marine FacilitiesAlternative A/B1
Burgas Marine FacilitiesAlternative A/B1
Burgas Terminal Alternative B3
Burgas Terminal Alternative B3
Burgas Terminal Alternative A/B1
Burgas Terminal Alternative A/B1
Burgas Marine FacilitiesAlternative B3
(Single Point Moorings)
Burgas Marine FacilitiesAlternative B3
(Single Point Moorings)
Pumpstation 2 of Alternatives B1/B3Pumpstation 2 of
Alternatives B1/B3
Route AlternativeB1/B3
Route AlternativeB1/B3
Route ARoute A
Virsini
17
BURGAS – ALEXANDROUPOLIS OIL PIPELINE
Source: ILF STUDY
May 2008
18
PROJECT CHARACTERISTICS FOR THROUGHPUT OF 35 MLN TONSBASED ON ILF STUDY, SUBJECT TO CHANGE UPON COMPLETION OF STUDY UPDATING
Alexandroupolis Tank Farm and Marine Facilities
Pipeline
BurgasTank Farm and Marine Facilities
Capex
• Main Pipeline Length: 256 ÷ 279 km• Overall Pipeline Length: 280 ÷ 303 km• Pipeline Diameter: 36“• Intermediate Pumpstation
• Tank Farm Capacity: 450.000 m3 + 2 Swing Tanks x 20.000 m3
• Marine Facilities: 2 Piers x 2 Berthing Points for Tankers of 150.000 dwt
• Total CAPEX for Both Countries Including Facilities for 300.000 dwt tankers in Alex/lis:
• 1 Bln Euros (updated prices for 2007)
• Tank Farm Capacity: 750.000 m3 + 2 Swing Tanks x 20.000 m3
• Marine Facilities: 2 SPMs x Accommodating 2 Tankers of 300.000 dwt each
May 2008
19
PROJECT BACKGROUND1993-1994 Athens • Concept of the Burgas – Alexandroupolis
Project by the late N. Gregoriadis - Establishment of THRAKI S.A, which is the initiator and promoter of the project..
Feb. 1998 Athens • Establishment of the J/ V HELPE S.A. – THRAKI S.A., the Greek participant in the project.
Sep. 2000 Moscow • Establishment of the Project’s Trilateral Working Committee among Bulgaria, Greece and Russia.
Jan. 2002 Project Studies • Extensive studies completed by ILF Consulting Engineers.
Jan. 2003 Athens • Signing of a Political Memorandum among Bulgaria and Greece.
Nov. 2004 Athens • Political Memorandum initialed among Bulgaria, Greece and Russia.
Jan. 2005 Moscow • Legal and economical transit framework initially agreed.
• Group of Initiating Companies (GIC) created.
Apr. 2005 Sofia • Russia, Bulgaria and Greece signed a Memorandum on cooperation.
Sep. 2006 Athens • Russia, Bulgaria and Greece signed a Trilateral Declaration of Cooperation.
Mar. 2007 Athens • Russia, Bulgaria and Greece signed an Intergovernmental Agreement.
6 Feb. 2008 Amsterdam • Incorporation of the International Project Company of the Project “Transbalkan Pipeline B.V.” in Neterlands.
May 2008
20
NEXT STEPS OF THE TRANSBALKAN PIPELINE BV
• Updating of the Project’s Studies and its time schedule
• Preparation and signing of the Host Government Agreements
• Licensing
• Financing
• Construction
May 2008
21
– Pipeline Consortium Burgas-Alexandroupolis LtdGazprom NeftRosneftTransneft
RUSSIAN SIDE( 51 % )
BULGARIAN SIDE( 24.5 % )
GREEK SIDE( 24.5 % )
JSC Pipeline Burgas-Alexandroupolis BGBulgargazTechnoexportstroy
HELPE – THRAKI A.E.Burgas-Alexandroupolis Oil Pipeline
Hellenic Petroleum S.A.Latsis Group ( 23,5% )Prometheus Gas Group
Greek State ( 1% )
TRANSBALKAN PIPELINE BV SHAREHOLDERS
Kazakhstan’s Crude Oil Export RoutesBLACK SEA �CRUDE OIL EXPORT PIPELINE ALTERNATIVESBURGAS – ALEXANDROUPOLIS OIL PIPELINEPROJECT CHARACTERISTICS FOR THROUGHPUT OF 35 MLN TONS�BASED ON ILF STUDY, SUBJECT TO CHANGE UPON COMPLETION OF STUDY UPDATING�PROJECT BACKGROUNDNEXT STEPS OF THE �TRANSBALKAN PIPELINE BV