PIPE LINE TO THE FUTUREBUNKERING IN

TURKEY AND BLACKSEA

by Mustafa Muhtaroğlu

CEO Energy Petrol İstanbul

ATHENS 2007

PIPE LINE TO THE FUTURE

PIPELINES EFFECTING BUNKERING

IN THE AREA

º BTC (BAKU - TBILISI – CEYHAN)

º BOURGAS – ALEXANDROUPOLIS

º SAMSUN – CEYHAN

º IRAQI PIPELINE

BTC PIPE LINE

BTC PIPE LINE

º OPERATING SINCE 04/06/2006

º 1075 KM LONG

º TOTAL CAPACITY 50 MIO TONS / YEAR

º 150 SHIPS LOADED WITH 30 MIO TONS

CRUDE BY 30/04/2007

BOURGAS - ALEXANDROUPOLIS

PIPE LINE

•

º 280 KM LONG

º 135 KM IN GREEK TERRITORY

º TOTAL CAPACITY 35 MIO TONS / YEAR

º BUDGET 800 MIO EURO

º CONSTRUCTION EXPECTED TO BE

COMPLETED BY BEGINNING 2009

BOURGAS - ALEXANDROUPOLIS PIPE

LINE

SAMSUN – CEYHAN PIPELINE

• SIGNED IN APRIL 2007

•555 KM LONG

• TOTAL CAPACITY 70 MIO

TONS / YEAR

• INVESTMENT BY ITALIAN &

TURKISH CONSORSIUM - ENI

AND CALIK GROUP

IRAQI PIPE LINE

º TOTAL CAPACITY 70 MIO TONS / YEAR

º NON OPERATIVE DUE TO CURRENT

IRAQI SITUATION

IRAQI PIPE LINE

PORTSB.SEA

Black Sea

MAIN BLACK SEA

Black Sea

Aegean

Sea

Mediterranean Sea

BUNKERING IN BLACK SEA

PORTSB.SEA

Black Sea

MAINNOVOROSSIYSK (RUSSIA)

Most important Russian port in Blacksea

One of most important export oil terminal Novorossiysk Sheskharis with anuual 52 mio tonnes oil export

CPC Oil Terminal with 30 mio capacity

Main grades 380/180/mgo available, very rarely lower grades

Deliveries by barges

Ex-pipe bunkering from Sheskharis oil terminal, no ex-pipe from CPC Terminal

12 bunker suppliers

24 bunker barges from 300 upto 3000 tonner

Bunker terminal with 103.000 cbm capacity for fueloil and 15.000 cbm for mgo

Steady growth of cargo volume and number of ships calling

Serious difficulties and quality problems for bunker supplies in winter

2004 2005

Total cargoes handled (Mio Tons) 102.517 113.082

Total number of ships working cargo 4.134 5.093

Total number of ships taking bunker 3.008 3.774

Total bunker supplied(thousand tons) 837 940

ex-barges 537 620

ex-oil terminal 300 320

LOWEST BUNKER PRICES IN BLACKSEA

NOVOROSSIYSK (RUSSIA )

PORTSB.SEA

Black Sea

MAIN TUAPSE (RUSSIA)

Oil Terminal with 30.5 mio oil export

4.1 mio capacity Tuapsinsky Oil Refinery

Dry cargoes 18.7 mio tonnes in 2005

9.9 mio first half 2006

Less shipping

Less bunkering

Total monthy bunkering about 10.000 ts

Total bunker storages only 5000 cbm

3 bunker suppliers

2 barges

There are new plans and investments for better bunkering service

LESS ACTIVE BUNKERING PORT

TUAPSE (RUSSIA)

PORTSB.SEA

Black Sea

MAIN MARIUPOL (UKRAINE)

Largest port in Azov sea

12 mio capacity

5 mio tons coal capacity

1 mio tons grain capacity

only 50.000 containers

Only small quantity gasoil in emercency by local agents

Bunkering in Kerch Straits was suspended in June 2006. Allowing for ships going to/ coming from Russian ports only. Now normal for all ships.

IMPORTANT PORT BUT NO BUNKERS

MARIUPOL (UKRAINE )

PORTSB.SEA

Black Sea

MAIN YUZHNYY (UKRAINE)

One of 3 biggest ports of Ukraine

Total cargoes handled about 20 mio tons

Important installations for fertilazers,

chemicals

Most important port for Amonia export (1

mio tons) and coal (2.2 mio tons)

Annual bunker sales about 300.000 tons

Main grades (380/180/MGO) available

Over 75.000 tons storages for bunkering

10 bunker barges including 3000 tonner one

Product from Ukraine Nadvornaya and

Kremenchug refineries

PROMISING BUNKERING PORT

YUZHNYY (UKRAINE )

PORTSB.SEA

Black Sea

MAIN ODESSA (UKRAINE)

Biggest oil terminal of Ukraine with total

capacity 25 mio tons

4 mio tons crude , 2,5 mio tons products

handled in 2005

Dry cargo handling capacity 24 mio tons,

mainly metals

340.000 tons storage capacity for dark

products

70.000 tons storages for white products

Total berth 8000 meters including 1000

meters for 6 oil berths

Oil terminal connected to country via

underground and railway trains

Annual bunker sales about 200.000 tonsIMPROVING BUNKERING PORT

Ex-pipe supply for tankers at oil terminal

Supplied from Yuzhnyy storages & barges

Main grades (380/180/MGO) available lower grades on enquiry

ODESSA (UKRAINE )

PORTSB.SEA

Black Sea

MAIN ILICHEVSK (UKRAINE)

One of Biggest port of Ukraine at most

industrial area known as “Door to Ukraine”

Total capacity 15 mio tons

Recently opened terminal with capacity 3.2

mio tons

100.000 tons oil storages

Annual bunker sales about 100.000 tons

Main grades (380/180/MGO) available

lower grades on enquiry

Supplied from Yuzhnyy storages & barges

IMPROVING BUNKERING PORT

ILICHEVSK (UKRAINE )

PORTSB.SEA

Black Sea

MAINCONSTANTZA (ROMANIA)

Total number of ships called at Constantza in 2005 - 5510

3 Bunker Suppliers

6 bunker barges sizing from 400 upto 2300 tonner

Oil Terminal available at Constantza with 10.000 cbm ifo and 5000 cbm mgo

2005 2006 (by 31/08)

Number of Ships 815 480

Fueloil 68,750 37,290

Mgo 26,604 14,459

TOTAL 95,354 51,749

FACILITIES WELL, BUNKERING LESS

2001 2002 2003 2004 2005

33,802 40,524 43,222 50,433 60,632

2001 2002 2003 2004 2005

33,802 40,524 43,222 50,433 60,632

Containers (Teu)

Total Cargoes (mio mts)

Total bunker supplied and number of ships bunkered

CONSTANTZA (UKRAINE )

PORTSB.SEA

Black Sea

MAINVARNA (BULGARIA)

ONLY GASOIL SUPPLY PORT

One of 2 important ports of Bulgaria

Number of Vessel called in 2005 - 2502

Total cargoes handeled in 2005 about 12

mio tons

Only gasoil available sourced from Lukoil

Neftochim Refinery

4 suppliers, leading one doing 60pct of

market

2 barges only

Total sales 25.000 tons Mgo

VARNA (BULGARIA)

PORTSB.SEA

Black Sea

MAIN BOURGAS (BULGARIA)

ONLY GASOIL SUPPLY PORT

One of 2 important ports of Bulgaria

Number of Vessel called in 2005 - 2186

Total cargoes handeled in 2005 about 12

mio tons

Only gasoil available sourced from Lukoil

Neftochim Refinery

5 suppliers, leading one doing 60pct of

market

4 barges only

Total sales 30.000 tons Mgo

Fuel oil supplies recently started

BOURGAS (BULGARIA )

ISTANBUL

•Most active and most common bunkering

point at the area

•50.000 ships passing through Turkish Straits

every year

•15.000 ships taking bunkers annually

•Annual total bunker sales about 1.5 mio tons

•High quality products supplied

•8 suppliers 6 doing both products fuel oil

and gasoil, 2 only marine gasoil

•100.000 mts storage for bunkering including

28.000 dwt floating storage

•55 well donated fast barges serving

ONE OF BEST BUNKERING POINT AT THE AREA

ISTANBUL STRAIT;

NATURAL PIPE LINE BY SHIPS

PASSING RECORDS OF ISTANBUL STRAIT

YEARS

NUMBER OF

TOTAL VESSELS NUMBER OF TANKERS

QUANTITY OF

DANGEROUS

CARGOES (MTS)

2003 46939 8097 134603,741

2004 54564 9399 143448,164

2005 54794 10027 143567,196

2006 54880 10153 143452,401

CANAKKALE STRAIT

PASSING RECORDS OF CANAKKALE STRAIT

YEARS NUMBER OF VESSELS

2003 42648

2004 48421

2005 49077

2006 48915

IZMIT BAY PORTS

IZMIT BAY PORTS

º 12.000 SHIPS CALLING PER YEAR FOR DISCHARGING &

LOADING

º MAIN DOOR FOR TURKEY’S MOST DEVELOPED &

INDUSTRIAL AREA

º OVER 30 PORT FACILITIES FOR CONTAINERS, CHEMICALS,

OIL, STEEL, CAR, CEMENT AND GENERAL CARGOES

º TURKEY’S BIGGEST REFINERY LOCATED INSIDE THE BAY

WITH CAPACITY 11 MIO TONS / YEAR

º 6 OF TOTAL 8 SUPPLIERS ACTIVE IN ISTANBUL AND

MARMARA SEA ARE LOCATED AT IZMIT BAY TERMINALS

º QUALITY & COMPETITIVE BUNKERS AVAILABLE

GEBZE

BUNKERS AVAILABLE WITH COMPETITIVE PRICES

Main terminals for chemicals and oil with

about half million cbm tank capacity.

PORTSMAINMED

DARICA

BUNKERS AT BERTH

Cement terminal only

ESKIHISAR ANCHORAGE

BUNKERING WHILE WAITING

Anchorage area for dry cargo ships waiting

for berth

DILISKELESI

BUNKERS AT BERTH

Main discharging & loading ports for steel,

general cargoes and containers

HEREKE

BUNKERS AT BERTH

Main discharging & loading ports for steel,

cement and general cargo

YARIMCA

YARIMCA

The biggest refinery in Turkey located at

Yarimca with capacity 11 mio tons / year

EX-PIPE bunkering possible at refinery

Some more berths for oil and chemical

terminals

YARIMCA ANCHORAGE

Anchorage area for tankers waiting for berth

BUNKERING POSSIBLE WHILE WAITING OR

AFTER CARGO OPERATION

DERINCE

• Large general cargo and container port

BUNKERS AT BERTH

IZMIT ANCHORAGE

Second anchorage for dry cargo ships

waiting for berth located further east in Izmit

Bay

BUNKERING WHILE WAITING

MARMARA SEA PORTS

Marmara Sea

KEPEZ

KARABIGA

TEKIRDAG

Main and important port for North Marmara

Bunkers by suppliers located in Izmit Bay

BUNKERS AT BERTH

MARMARA EREGLI

Steel and general cargo berth.

New investments for oil terminals including

400.000 ts capacity one scheduled for 1 mio

ts capacity

Bunkers by suppliers located in Izmit bay

BUNKERS AT BERTH

GEMLIK

BUNKERS AVAILABLE WITH ADDITONAL

TRANSPORT CHARGES AND SUB BERTH

Main container and general cargo berths for

South Marmara,

Large fertilizer factory

Some ports not allowing bunkers at berth

Bunker supplied by suppliers located in Izmit bay

MUDANYA

BUNKERS AT BERTH WITH ADDITIONAL

TRANSPORT CHARGE

Small general cargo berth serving to local

trade

Bunker supplied by suppliers located in Izmit

Bay

BANDIRMA

BUNKERS AT BERTH WITH ADDITIONAL

TRANSPORT CHARGE

Important general cargo port for south

Marmara

Large fertilizer factory located

Bunker supplied by suppliers located in Izmit

bay

PORTSMAINMED

KARABIGA / KEPEZ

KARABIGA

ONE STEEL TERMINAL

BUNKER SUPPLIED BY SUPPLIERS LOCATED IN IZMIT BAY

BUNKERS AT BERTH WITH ADDITIONAL TRANSPORT CHARGE

KEPEZ

NEW GENERAL CARGO AND RO-RO TERMINAL WITH ONE SUPPLIER

LOCATED SERVING CANAKKALE STRAIT AS WELL

NEW BUNKERING POINT FOR CANAKKALE STRAIT WITHOUT

SIGNIFICANT EFFECT AND BRIGHT RESULTS SO FAR

IZMIR - ALIAGA - NEMRUT

Marmara Sea

Aegean Sea

IZMIR

IMPORTANT PORT AND BUNKERING PLACE IN

TURKISH AEGEAN SHORES WITH MAIN SOURCE

REFINERY

Main door for west of Turkey in Aegean

reginion

Large container and general cargo traffic with

total 12 mio tons cargoes handled.

Sole source for fuel oıil refinery at Aliaga

Bunker supplied from refinery and MGO

depots located in Aliaga

9 barges with biggest one 750 tons

50.000 tons bunker supplıed to 3025 vessels

in 2005

72.500 tons bunker supplıed to 3535 vessels

in 2006

ALIAGA

EX-PIPE BUNKERING AT REFINERY PORT

Turkey’s second biggest refinery located with

capacity 11 mio tons

Nearby ports like Gulluk and Dikili supplied

from that refinery and MGO depots located at

the same area

Yachts calling at southern Turkey like

Bodrum, Gocek, Marmaris, Fethiye also

supplied from that refinery and MGO depots

located at the same area

PORTSMAINMED

NEMRUT

BUNKERS AT BERTH

Several berths for steel and general cargo

Bunker supplied from refinery and MGO

depots in Aliaga

MERSIN - CEYHAN

Marmara Sea

Aegean Sea

Mediterrenean Sea

ISKENDERUN

MERSIN

VERY IMPORTANT PORT IN SOUTH MED WITH

ALMOST NO BUNKER

Main port for South Turkey with large

container and general cargo traffic

Several depots for oil and ex-refinery with

300.000 tons storages

Very less bunkering activity for MGO only

2005 2006

OIL PRODUCTS 5.402.257 4.056.619

CONTAINERIZED CARGO 5.655.768 6.350.462

TOTAL (MTS) 15.727.078 16.079.392

CEYHAN

MOST PROMISING PORT FOR BUNKERING IN

RECENT YEARS

Most populer port in South Med with BTC

Expected to be Rotterdam in the area

No proper bunkering service yet

Difficult to source cheap product to compete

with main Med bunkering ports

ISKENDERUN

DEAD AREA WITH IRAQI WARS

SEVERAL STEEL, DRY CARGO BERTHS

VERY LESS BUNKERING ACTIVITY FOR MGO ONLY

CONCLUSION

NEW BUNKERING POINTS WILL BE WITH US WITH

PIPELINES IN BOURGAS, ALEXANDROIPOLIS,

SAMSUN AND CEYHAN

NOT VERY SIGNIFICANT EFFECT FOR BUNKERING AT

STRAITS

CEYHAN TO BE MOST ACTIVE OIL HUB IN THE AREA

NEEDING INVESTMENTS FOR BUNKERING