2017 ACTIVITY REPORT

In 2017, even though Average Oil Prices have increased by 25%, the level of investment has remained low in the Oil & Gas Industry.

A WORD FROM THE CEO

As a consequence and due to the high level of uncertainties, the Underground Storage Market has been impacted, resulting in a general lower level of activity worldwide.

Within this difficult context, Geostock Group has remained resilient and succeeded in maintaining relatively good performance given the adverse situation faced by our Industry. In addition, some relevant opportunities have materialized, offering some promising prospects for the near future.

ˈ Geostock SAS has been affected by delay or postponement of several major projects, resulting in performance below expectations even though the profitability has remained acceptable,

ˈ UGS GmbH, despite a slack German Market and a lower level of activity, maintained decent performance,

ˈ Geostock Asia Pte Ltd showed very good performance thanks to major projects in the Middle East that materialized,

ˈ Geostock Sandia LLC has benefited from a more dynamic market in the US for well disposal, which did not result in higher profitability due to planned exceptional expenditures,

ˈ Geostock de México SA de CV, following the start-up of the Shalapa project and the recruitment of a full Operation Team, delivered very good results,

ˈ Once again, the level of activity of Geogreen SA remained low due to the reduced market in the field of CO2 storage.

Geostock, with the support from its shareholders Entrepose and TOTAL, has reinforced its efforts to promote and develop major projects that will secure its future.

Among them, the Shalapa Project in Mexico has started. It is operated by Geostock and constitutes a showcase for the development of new identified projects in Mexico as well as worldwide where Geostock can offer integrated and packaged services from engineering to operation.

In the Middle East, given the geopolitical tensions in the region, Geostock is involved in major underground hydrocarbon storage projects.

Turkey, that has a strategic position on the gas corridor going from the Caspian Sea to Europe, is a promising country where Geostock is developing several major underground gas storage projects.

Geostock is placing a high priority on developing Operation and Maintenance Services internationally.

Meanwhile, Research & Development efforts in Energy Storage (mainly Compressed Air and Hydrogen Underground Storages) have been continued to anticipate future projects.

In spite of the complex environment facing our Industry in 2017, oil prices seem to stabilize at a decent level, which should impact the investment in the Oil & Gas Industry.

With its 50 years of experience, its professional and dedicated staff as well as the mutual Trust that we enjoy with our Customers, we are confident that the Geostock Group will be successful in seizing new opportunities and developing its activity in the near future.

Contents02 Our strategy and values

03 A word from the CEO

04 Organization and teams

06 Key figures

08 Our commitments

16 Our activities

20 Our expertise

24 Our innovation program

26 Contacts

Our strategy and valuesBe the standard in underground storage, for all techniques and products.

Attain perfection in terms of Hygiene, Safety and the Environment.

Earn the confidence of our shareholders, our customers and our partners.

Be a player in energy transition by offering new possibilities for storing gas and renewable energy.

Participate in the development of our employees, support them in their professional careers and facilitate the transfer of knowledge.

Innovate in order to prepare future storage facilities.PASCAL BAYLOCQ Managing Director – Geostock HoldingPresident and CEO – Geostock SAS

R&D efforts are maintained on Energy Storage

Workover - USA GEOSTOCK - 2017 ACTIVITY REPORT

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STONORGAZTURKISHBRANCH

BANYANCAVERNSSTORAGE SERVICES

GEOSUD 50%

CNPASSURANCES

98%

STORENGY 50%

IFPEN 3%BRGM 1,5%

VTS 45%JCPL 20%

VGS 40%

100% 100% 100% 100% 60% 95,5% 2%100%

GEOSTOCK GEOSTOCKDE MEXICO

GEOSTOCKASIA

GEOSTOCKDO BRASIL

GEOSTOCKNORTH AMERICA

GEOGREEN GEOSUDUGS

100% 35%

GEOSTOCKSANDIA

GEOSTOCK US FEDERAL SERVICES

100% 100%

GEOMETHANE

100%

10%90%

Geostock is a subsidiary of Entrepose Group (Vinci Group) and Total and is established on every continent through its worldwide subsidiaries, offering proximity services to its clients.

ORGANIZATION AND TEAMS

SUBSIDIARIES MANAGEMENT TEAMS

PASCAL BAYLOCQ President and CEO

DOMINIQUE LEBTAHI Vice President Operations & Development

GILLES LE RICOUSSEVice President Operations & Development

LOUIS LONDETechnical Director

EXECUTIVE COMMITTEE

MANAGEMENT COMMITTEE

THIERRY VORGERS Legal Director

VINCENT LE QUELLEC Vice President Administration & Finance

FABIENNE SOORIAH Vice President Business Development

CÉLINE COSQUER Human Resources Director

Matthias HERTER & Robert SCHELER Senior Managing DirectorsUGS GmbH – Berlin(GERMANY)

Donald STEHLE President and CEOGEOSTOCK SANDIA, LLC Houston, Texas (USA)

Jintang YANGeneral ManagerGEOSTOCK ASIA Pte Ltd(Singapore)

Gilles MUNIERCEOGEOGREEN SA Paris (France)

Jonathan ROYER-ADNOT Country ManagerGEOSTOCK DO BRASIL Ltda. Rio de Janeiro (Brazil)

Fabienne SOORIAH DirectorGEOSTOCK DE MEXICO SA de CV (Mexico)

1- Carlos GOMEZ MONTALVO Director Sales & Marketing

2- Alain HERFRAY Operation Manager

3- Lotfi MOUNEDJI Director Business Development

4- Gilles MUNIER Director Projects Division

5- Flore OSTAPOFF Director HSE & Permitting Department

GEOSTOCK - 2017 ACTIVITY REPORTGEOSTOCK - 2017 ACTIVITY REPORT

04

Support

Well services

Engineering

Operation

Miscellaneous

Well services

Engineering

Operation

KEY FIGURES 2016

0

20

40

60

80

100

20162015201420132012201120102009

0

20

40

60

80

100

20162015201420132012201120102009

60

80

100

20162015201420132012201120102009

0

10

20

30

40

50

60

20162015201420132012201120102009

81 78.7

83.7

88.7

89.7

97.6

84.1

80.6

7.6

11.4

12.2

13.7

11.9

12.4

8.6

56.5

OPERATION 35%

ENGINEERING 40%

ADMINISTRATION 13%

WELL SERVICES 12%

OPERATION 52%ENGINEERING

33%

WELL SERVICES15%

LIQUEFIED HYDROCARBONS 15%

EFFLUENTS & OTHERS

13%

LIQUID HYDROCARBONS 25%

NATURAL GAS 47%

KEY FIGURES

OPERATION 39%

ENGINEERING 37%

ADMINISTRATION 12%

WELL SERVICES 11%

LIQUEFIED HYDROCARBONS 17%

EFFLUENTS & OTHERS

20%

LIQUID HYDROCARBONS 22%

NATURAL GAS 41%

OPERATION 58%

ENGINEERING 28%

WELL SERVICES14%

0 10 20 30 40 50 60

2017

2016

2015

2014

2013

2012

2011

2010 11.4

12.2

13.7

11.9

12.4

8.6

56.5

54.6

0 20 40 60 80 100

2017

2016

2015

2014

2013

2012

2011

2010 78.7

83.7

88.7

89.7

97.6

84.1

80.6

83.4

Support

Well services

Engineering

Operation

Miscellaneous

Well services

Engineering

Operation

KEY FIGURES 2016

0

20

40

60

80

100

20162015201420132012201120102009

0

20

40

60

80

100

20162015201420132012201120102009

60

80

100

20162015201420132012201120102009

0

10

20

30

40

50

60

20162015201420132012201120102009

81 78.7

83.7

88.7

89.7

97.6

84.1

80.6

7.6

11.4

12.2

13.7

11.9

12.4

8.6

56.5

OPERATION 35%

ENGINEERING 40%

ADMINISTRATION 13%

WELL SERVICES 12%

OPERATION 52%ENGINEERING

33%

WELL SERVICES15%

LIQUEFIED HYDROCARBONS 15%

EFFLUENTS & OTHERS

13%

LIQUID HYDROCARBONS 25%

NATURAL GAS 47%

KEY FIGURES

OPERATION 39%

ENGINEERING 37%

ADMINISTRATION 12%

WELL SERVICES 11%

LIQUEFIED HYDROCARBONS 17%

EFFLUENTS & OTHERS

20%

LIQUID HYDROCARBONS 22%

NATURAL GAS 41%

OPERATION 58%

ENGINEERING 28%

WELL SERVICES14%

0 10 20 30 40 50 60

2017

2016

2015

2014

2013

2012

2011

2010 11.4

12.2

13.7

11.9

12.4

8.6

56.5

54.6

0 20 40 60 80 100

2017

2016

2015

2014

2013

2012

2011

2010 78.7

83.7

88.7

89.7

97.6

84.1

80.6

83.4

Support

Well services

Engineering

Operation

Miscellaneous

Well services

Engineering

Operation

KEY FIGURES 2016

0

20

40

60

80

100

20162015201420132012201120102009

0

20

40

60

80

100

20162015201420132012201120102009

60

80

100

20162015201420132012201120102009

0

10

20

30

40

50

60

20162015201420132012201120102009

81 78.7

83.7

88.7

89.7

97.6

84.1

80.6

7.6

11.4

12.2

13.7

11.9

12.4

8.6

56.5

OPERATION 35%

ENGINEERING 40%

ADMINISTRATION 13%

WELL SERVICES 12%

OPERATION 52%ENGINEERING

33%

WELL SERVICES15%

LIQUEFIED HYDROCARBONS 15%

EFFLUENTS & OTHERS

13%

LIQUID HYDROCARBONS 25%

NATURAL GAS 47%

KEY FIGURES

OPERATION 39%

ENGINEERING 37%

ADMINISTRATION 12%

WELL SERVICES 11%

LIQUEFIED HYDROCARBONS 17%

EFFLUENTS & OTHERS

20%

LIQUID HYDROCARBONS 22%

NATURAL GAS 41%

OPERATION 58%

ENGINEERING 28%

WELL SERVICES14%

0 10 20 30 40 50 60

2017

2016

2015

2014

2013

2012

2011

2010 11.4

12.2

13.7

11.9

12.4

8.6

56.5

54.6

0 20 40 60 80 100

2017

2016

2015

2014

2013

2012

2011

2010 78.7

83.7

88.7

89.7

97.6

84.1

80.6

83.4

Support

Well services

Engineering

Operation

Miscellaneous

Well services

Engineering

Operation

KEY FIGURES 2016

0

20

40

60

80

100

20162015201420132012201120102009

0

20

40

60

80

100

20162015201420132012201120102009

60

80

100

20162015201420132012201120102009

0

10

20

30

40

50

60

20162015201420132012201120102009

81 78.7

83.7

88.7

89.7

97.6

84.1

80.6

7.6

11.4

12.2

13.7

11.9

12.4

8.6

56.5

OPERATION 35%

ENGINEERING 40%

ADMINISTRATION 13%

WELL SERVICES 12%

OPERATION 52%ENGINEERING

33%

WELL SERVICES15%

LIQUEFIED HYDROCARBONS 15%

EFFLUENTS & OTHERS

13%

LIQUID HYDROCARBONS 25%

NATURAL GAS 47%

KEY FIGURES

OPERATION 39%

ENGINEERING 37%

ADMINISTRATION 12%

WELL SERVICES 11%

LIQUEFIED HYDROCARBONS 17%

EFFLUENTS & OTHERS

20%

LIQUID HYDROCARBONS 22%

NATURAL GAS 41%

OPERATION 58%

ENGINEERING 28%

WELL SERVICES14%

0 10 20 30 40 50 60

2017

2016

2015

2014

2013

2012

2011

2010 11.4

12.2

13.7

11.9

12.4

8.6

56.5

54.6

0 20 40 60 80 100

2017

2016

2015

2014

2013

2012

2011

2010 78.7

83.7

88.7

89.7

97.6

84.1

80.6

83.4

Support

Well services

Engineering

Operation

Miscellaneous

Well services

Engineering

Operation

KEY FIGURES 2016

0

20

40

60

80

100

20162015201420132012201120102009

0

20

40

60

80

100

20162015201420132012201120102009

60

80

100

20162015201420132012201120102009

0

10

20

30

40

50

60

20162015201420132012201120102009

81 78.7

83.7

88.7

89.7

97.6

84.1

80.6

7.6

11.4

12.2

13.7

11.9

12.4

8.6

56.5

OPERATION 35%

ENGINEERING 40%

ADMINISTRATION 13%

WELL SERVICES 12%

OPERATION 52%ENGINEERING

33%

WELL SERVICES15%

LIQUEFIED HYDROCARBONS 15%

EFFLUENTS & OTHERS

13%

LIQUID HYDROCARBONS 25%

NATURAL GAS 47%

KEY FIGURES

OPERATION 39%

ENGINEERING 37%

ADMINISTRATION 12%

WELL SERVICES 11%

LIQUEFIED HYDROCARBONS 17%

EFFLUENTS & OTHERS

20%

LIQUID HYDROCARBONS 22%

NATURAL GAS 41%

OPERATION 58%

ENGINEERING 28%

WELL SERVICES14%

0 10 20 30 40 50 60

2017

2016

2015

2014

2013

2012

2011

2010 11.4

12.2

13.7

11.9

12.4

8.6

56.5

54.6

0 20 40 60 80 100

2017

2016

2015

2014

2013

2012

2011

2010 78.7

83.7

88.7

89.7

97.6

84.1

80.6

83.4

GROUP CONSOLIDATED TURNOVER (M€)

CASH AFTER LONG TERM DEBTS (M€)

GROUP SALES PER ACTIVITY (% OF GROSS INCOME)

GROUP SALES PER PRODUCT LINE(% OF GROSS INCOME)

HEADCOUNT PER ACTIVITY

BACKLOG

125 M€ end 2017

OPERATING INCOME

1.87 M€

WORKFORCE

520 people

KEY FIGURES

Surface facilities - Diadema, Argentina

GEOSTOCK - 2017 ACTIVITY REPORTGEOSTOCK - 2017 ACTIVITY REPORT

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Our main value is Safety and we remain mobilized at all levels to implement our Hygiene, Safety and the Environment policy.

OUR COMMITMENTS

08

Our permanent objectiveZero Lost Time AccidentZero Major AccidentZero Environmental Damage

Realization of an HSE visit

GEOSTOCK - 2017 ACTIVITY REPORT

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OUR COMMITMENTSHealth, Safety, Security and Environmental Awareness has always been and remains a core value and a priority policy for all Geostock Activities.

To achieve its permanent objectives, Geostock continues to implement an ongoing process of constant improvement and is committed to promoting the “HSE FUNDAMENTAL RULES” with a focus in 2017 on HSE vigilance in daily tasks and security of access and data.

Supported by a strong HSE Management System and a network of professional HSE Teams working in the various Geostock companies, Geostock endeavours to apply HSE standards at every stage of projects (design, construction and operation):

ˈ HSE in engineering & construction: continuous development of a system to integrate HSE concerns into all project processes,

ˈ SAFETY at operational plants and sites under construction: contingency plans updated and tested to deal with any hazardous situations occurring on a site operated by Geostock. Three drills have been held, activating the Crisis Centre at Geostock headquarters,

ˈ SECURITY at operational plants: specific security action plans have been set up to reinforce security at all plants,

ˈ ENVIRONMENT: monitoring the environmental impact of all projects, specifically during pipeline construction. Geostock is used to managing ecological studies involving fauna and flora at every step of a building project, with the aim of protecting the environment and limiting / reducing the impact of works.

HUMAN RESOURCES

Since we believe that our employees represent our knowledge and expertise, we implement a Human Resources policy that seeks to support their development and offer them long-term prospects.

Among the actions that were started or continued in 2017, Geostock endeavoured in particular to:

ˈ Foster sustainable employability, realised in 2017 through a 100% rate for permanent work contracts in mainland France and a rate of 85 to 90% in the other regions, with a reliable turnover and team and expert retention,

ˈ Increase the percentage of women in the group, which currently accounts for 31% of the staff, with 27% of women holding management positions,

ˈ Continue its training efforts with a sustained

rate of 4% of the payroll, mainly in France, ˈ Improve knowledge transfer to ensure knowledge retention and handle the significant number of employees in engineering and operations activities entering retirement,

ˈ Ensure the large-scale recruitment and extensive training of the operations staff following the opening of our Geostock subsidiary in Mexico.

Quality ManagementGeostock SAS, France and UGS GmbH, Germany are ISO 9001: 2015 certified.

STRONG HSE COMMITMENT AT NEW LPG STORAGE FACILITY IN MEXICOHSE was incorporated during the entire plant construction of a new LPG storage facility in a salt-leached cavern at Shalapa (Mexico): in pre-commissioning, commissioning and start-up phases. The operation of the facility is now undergoing Geostock HSE system management improvement.

GEOSTOCK REWARDED FOR ITS HSE RESULTSOn 13th May, the Sennecey-le-Grand storage facility in France, operated by Geostock and its owner completed its 21th year (i.e. 7670 days) without Lost Time Accident. This result is the confirmation of the commitment and the professionalism of everyone in the daily compliance with HSE good practices.

Salt caverns Engineering

Site Operation & Maintenance Géosel, Manosque, France

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UNITED KINGDOM WILTONClient: SabicRisk assessment study.

FRANCE MANOSQUEClient: Géosel Full operation site management.

GERMANY EPE-GRONAUClient: SolvayRecompletion of a conventional oil storage facility in order to be in compliance with risks and environmental requirements.

JAPAN KURASHIKI & NAMIKATAClient: JOGMECTechnical assistance to storage operation.

SOUTH KOREA ULSANClient: SK GASTechnical assistance to storage operation.

FRANCE PETIT-COURONNEClient: Shell FranceRealization of the shutdown works of a propane-mined storage cavern.

FRANCE LAVÉRAClient: GeogazFull operation site management.

ARGENTINAClient: TecpetrolSite selection and feasibility study.

BRAZIL SANTANAClient: StogasFront End Engineering & AMOA Drilling activity & Subsurface.

ITALY CORNEGLIANOClient: Ital Gas Storage Technical assistance and supervision of subsurface construction and 3D seismic survey management.

GEORGIA SAMGORI SOUTH DOMEClient: GOGCEngineering and supervision of exploration works.

TURKEY TUZ GÖLUClient: TCCCO2 characterization and leaching program and support of six phase-2 caverns.

USA CALEDONIA (MS)Client: ENSTORWorkovers and remedial works on seven storage wells.

GERMANY EPEClient: Air LiquideFull Helium storage operation.

SINGAPORE Client: JTCFull operation site management through BCSS Joint Venture

UAE ABU DHABI

USA Client: Parsons for DOE-SPRSubsurface expertise for life extension project

LPG STORAGE FACILITY IN CAI MEP - VIETNAM

At the end of the year, Geostock was awarded a contract with the Korean company HYOSUNG Vietnam Co, Ltd. for the realization of an underground LPG storage in mined caverns (1 propane cavern of approximately 340.000 m3 and 1 butane cavern of approximately 140.000 m3) in the industrial zone of CAI MEP in the province of Bà Rja-Vũng Tàu in the south-east of the country.HYOSUNG Vietnam Co, Ltd is a major South Korean company, which plans to build a new petrochemical plant in Vietnam that will use propane as a raw material.Geostock’ services concern exploration studies as well as general design studies that began at the contract’s signing in Septembre 2017 and will last for 12 months.

LPG STORAGE FACILITY IN YANTAI - CHINA

As part of the underground mined propane storage facility (1.2 Mm3 in two caverns) at Yantai in Shandong Province, Geostock received a contract from WANHUA Chemical Group for the review of the feasibility study, the complementary site investigation, as well as assistance with basic design in construction supervision.

SQUARE-FULL Liquid hydrocarbonsSQUARE-FULL Liquefied HydrocarbonsSQUARE-FULL Natural GasSQUARE-FULL Others

OUR ACTIVITIES

ˈ Argentinaˈ Australiaˈ Belgiumˈ Brazilˈ Bulgariaˈ Chinaˈ Congoˈ Franceˈ Georgia

ˈ Indiaˈ Italyˈ Japanˈ Mexicoˈ Moroccoˈ Omanˈ Portugalˈ Spainˈ Singapore

ˈ South Koreaˈ Swedenˈ Switzerlandˈ Turkeyˈ United Arab

Emiratesˈ United Kingdomˈ United Statesˈ Vietnam

A PRESENCE IN 26 COUNTRIES IN 2017

LPG STORAGE IN SHALAPA (VERACRUZ STATE)Client: ASSE

The underground storage facility of Shalapa, owned by CYDSA is a Liquefied Petroleum Gas (LPG) facility in a salt-leached cavern. As part of an EPC contract managed by Entrepose, Geostock provided engineering services for CYDSA’s subsidiary ASSE for the underground part comprising a salt cavern and well, and project managing assistance during construction supervision, first gas filling and performance tests. In 2017 with the beginning of the commercial operation of the storage facility, 37 people from Geostock’s subsidiary Geostock de México operate this facility on a long-term contract.

OUR EXPERTISEGeostock proposes a comprehensive offer throughout the full storage life cycle of an underground storage project as well as tailored solutions for client’s needs through the expertise of its teams.

Leaching wellhead. Tuz Gölu, Turkey

UGS in construction. Cornegliano, Italy.© Ital Gas Storage S.p.A.

GEOSTOCK - 2017 ACTIVITY REPORT

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ENGINEERING SERVICES

OPERATION SERVICES

Ranging from Consulting Engineering and Design studies to Construction supervision.

From specific services to Full Operation Management.

Geostock offers three different operating service models that enhance storage performance while ensuring the integrity of installations. Adapted to each customer’s needs, they are the result of over 50 years of experience in underground storage facility operation and maintenance.

CONSTRUCTION ˈ Engineering, ˈ Detailed design, ˈ Tendering, ˈ Procurement, ˈ Construction management, ˈ Commissioning and start-up.

DRILLING, WORK OVER, SOLUTION MININGˈ Drilling,ˈ Well logging,ˈ Well completion, ˈ Workovers, ˈ Solution mining, ˈ Brine, CO2 and effluent disposal in deep aquifers, ˈ Operation of leaching plants.DESIGN

ˈ Orientation and prefeasibility studies,ˈ Site selection,ˈ Exploration, ˈ Feasibility studies, ˈ Project planning,ˈ Reservoir and Caverns engineering, ˈ Permitting, ˈ Conceptual & Basic design, ˈ Modelling.

ECONOMIC STUDIESˈ Market survey and evaluation, ˈ Planning studies, ˈ Economic feasibility assessment, ˈ Due diligence, ˈ Business model evaluation. Technical

support services

Participation in storage operation

Full storage operation management

Examples of services:ˈ Storage Operations Management,ˈ Storage facility Monitoring,ˈ Asset Technical and Integrity Management,ˈ Corrosion studies,ˈ Technical studies on equipment and facility,

ˈ Well design and operations,ˈ Storage audits,ˈ Health, Safety and Environment,ˈ Site decommissioning and closure.

Geostock provides O&M services in more than 20 storages in the world, in mined or salt caverns as well as in depleted or aquifer storages, for LPG, Oil products or Natural Gas.

The company has operated Geosel and Geogaz storage facilities in France for nearly 50 years.

It is also involved in the operation of Jurong Rock Caverns storage in Singapore through its 35% shareholding in Banyan Caverns Storage Services, operator of the storage.

Geostock has also just started to fully operate a new salt cavern storage in Mexico.

Control Room. Shalapa, Mexico

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TECHNICAL KNOW-HOWGeostock benefits from a full range of skills, with over fifty years of know-how and expertise in underground storage technologies, for all techniques and all products.

PRODUCTS STORED

ˈ Liquid hydrocarbons ˈ Liquefied hydrocarbons ˈ Natural gas ˈ Compressed air ˈ Hydrogen ˈ Effluents

PRODUCTS STORED

ˈ Natural gas ˈ Compressed air ˈ Hydrogen ˈ CO2 ˈ Effluents

PRODUCTS STORED

ˈ Liquid hydrocarbons ˈ Liquefied hydrocarbons ˈ Natural gas (compressed or liquefied)

Leached-salt cavernsSalt cavern storage requires the presence of a significant salt deposit. The cavern is created by dissolving the salt in fresh water (leaching). Its shape and volume are established by sonar readings. The caverns are elongated in shape, several hundred meters high and several tens of meters in diameter. They are usually located at a depth of between 200 and 2,000 meters

and can have a volume of several hundred thousand cubic meters.

The stability of the cavern is guaranteed by the right choice of geometry and continuous monitoring of the pressure, temperature and flow during operation. Its tightness results from the intrinsic properties of salt.

Aquifers and depleted fieldsA field of this type is a porous, permeable geological formation (the reservoir) - a depleted field or an aquifer - overlain with an impermeable stratum and structured so as to ensure lateral containment.

It is usually located at a depth of between 500 and 2,000 meters. During the storage phase, the gas is compressed and injected

into the reservoir in gaseous state through a series of production wells. During recovery, the gas is withdrawn under the effect of its own pressure.

Equipment on the surface includes specifically compression, processing and metering facilities. Monitoring wells are used to check the position of the gas and the tightness of the reservoir.

Mined-rock cavernsA mined cavern consists of one or more tunnels carved out of the rock (limestone, chalk, granite, etc.). The tunnels are usually located at a depth of 50 to 200 meters. Generally unlined, their tightness is based on the principle of hydraulic containment, which defines the depth at which the cavern needs to be located to allow for the water naturally contained in the surrounding rocks

to flow constantly towards the cavern at all points, thus containing the product inside the storage cavern.

The mined-cavern technique - both with and without a lining, as applicable - may also be applied to the cryogenic storage of gases having a liquefaction point below -10°C.

LEACHED-SALT CAVERNS AQUIFERS AND DEPLETED FIELDS

MINED-ROCK CAVERNS

Multidisciplinary expertiseGeostock’s expertise in underground storage covers:

ˈ Subsurface Technologies (Geology, Geophysics, Geomechanics, Hydrogeology, Reservoir Engineering, Civil Engineering, Mining and Solution Mining),

ˈ Surface Technologies (Piping, Pumps, Pressure Vessels, Process, Electricity/Instrumentation, Control Systems, Corrosion),

ˈ Drilling and well services, ˈ Construction Management, Operation and Maintenance, Integrity Management,

ˈ Closure and abandonment of underground gas storage facilities.

Geostock is an active member of several worldwide scientific and technical societies in its field, such as SMRI (Solution Mining Research Institute), ISRM (International Society for Rock Mechanics), or SPE (Society of Petroleum Engineers).

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To improve Safety, Reliability & Performance and to address new markets.

The Geostock 2017 innovation programme has been organized within two areas of focus:

The first area aimed at improving tools and know-how in terms of Safety, Reliability & Performance. This allows Geostock to offer better services to its clients when designing or operating underground storages.

Existing tools have been upgraded. This is the case of GUSTS V2, Geostock thermodynamic simulator for gas salt caverns. GUSTS V2 is now currently used for the follow-up of existing caverns or for designing new caverns, including for new products like hydrogen. A new version of the well integrity management system (WIMS) tool has been also issued and used on industrial applications. An Asset Integrity Management Screening Tool has been tested on Reservoir Storages. The Asset Integrity Management System was also adapted to Mined Caverns in a promising step to build a comprehensive and efficient service framework.

A series of tests on various biocides have been performed on various water qualities and various steel samples. This was intended to compare the efficiency and/or detrimental effects of biocides, which are used in mined caverns (shaft water, sump water, water curtain water, etc.). Long duration tests were launched in mid-2017. The results will be available in 2018.

Geostock’s effort to improve hydro-mechanical simulation capabilities continued

in 2017. Progress was made in coupling finite-element mechanical tools with diphasic-flow simulation tools. This can be used for CH4 or for CO2 reservoir modelling in porous media.

The second area aimed at addressing the rising market of decarbonized energy storage.

Collaborative research on Hydrogen storage (Rostock-H) and on “power-to-power” (Fluidstory, with the Electrolysis-Methanation-Oxycombustion concept) was continued. Other programmes were launched with Entrepose on Hydrogen storage in order to optimise the whole “power-to-power”

value chain, salt caverns being the middle links between electrolysers and fuel cells. Research on Compressed Air Energy Storage (CAES) continued with a focus put on well optimization.

Geogreen is also extremely active in R&D, with subsidised collaborative R&D projects.

Three projects are currently underway (ENOS, CO2 DISSOLVE, FLUIDSTORY), focusing on the following innovative directions:

ˈ coupling of geomechanical and fluid, dynamics digital simulation tools,

ˈ quantification of risks, ˈ investment strategy estimates based on real options.

Two main areas of focus:Safety, Reliability & PerformanceDecarbonized Energy Storage

OUR INNOVATION PROGRAM

3d cavern modeling

O&M services. Lavéra, France

GEOSTOCK - 2017 ACTIVITY REPORT

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CONTACTSFRANCEGEOSTOCK SAS2, rue des MartinetsCS 7003092569 RUEIL-MALMAISON CedexTel.: +33 1 47 08 73 00Fax: +33 1 47 08 73 73 www.geostockgroup.com---Pascal BAYLOCQPresident and CEO

GEOGREEN SA2, rue des MartinetsCS 7003092569 RUEIL-MALMAISON CedexTel.: +33 1 47 08 73 00Fax: +33 1 47 08 73 73 www.geogreen.eu---Gilles MUNIERCEO

BRAZILGEOSTOCK DO BRASIL Ltda.Avenida Rio Branco, n°20, 3° andar, centro, Cidade do RIO DE JANEIRORJ, CEP: 20090-000Tel.: +55 21 9 8039 9090---Jonathan ROYER-ADNOTCountry Manager

GERMANYUGS GmbHBerliner Chaussee 215749 MITTENWALDE Tel.: +49 337 64820Fax: +49 337 648280www.ugsnet.de ---Matthias HERTERRobert SCHELERSenior Managing Directors

MEXICO GEOSTOCK DE MÉXICO SA de CVAv. Paseo de la Reforma 300, piso 3Col. Juárez, Del. Cuauhtémoc06600 CIUDAD DE MÉXICO---Fabienne SOORIAHDirector

SINGAPORE GEOSTOCK ASIA Pte Ltd.3 International Business Park#03-27 Nordic European CentreSINGAPORE 609927Tel.: +65 6896 0659Fax: +65 6563 6839---Jintang YANGeneral Manager

TURKEYGEOSTOCK ANKARAc/o OPALIT Tic. ve San. LtdŞti. Kırçiçeği S. 134 G.O.P ANKARATel.: +90.312. 446 12 77 (3 Hat) Fax: +90.312. 436 73 56---Haluk AYDEMIRBranch Manager

USAGEOSTOCK SANDIA, LLC8860 Fallbrook DriveHOUSTON, Texas 77064Tel.: +1 (346)314-4347Fax: +1 (832) 286-0477www.geostocksandia.com---Donald STEHLEPresident and CEO

Photos credits:Geostock photo library - Franck Beloncle - Adrien Vaucher - Géogaz Lavéra - Géosel Manosque - Ital Gas Storage S.p.A.

GEOSTOCK - 2017 ACTIVITY REPORTGEOSTOCK - 2017 ACTIVITY REPORT

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2, rue des Martinets - CS 7003092569 Rueil-Malmaison Cedex • FranceTel.: +33 1 47 08 73 00 • Fax: +33 1 47 08 73 73www.geostockgroup.com

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Mined-Rock Storage - Inchon, South Korea