Post-conference rePort 2016

5th Annual conference · 25 - 26 october 2017 · Bucharest, romania

BLACK SEA OIL AND GASBLACK SEA OIL AND GAS

ThE LEADING CONfErENCE fOr ThE BLACK SEA rEGION ShOrT SUMMArTY Of 2016 CONfErENCE

Black sea oil and Gas is the only annual event which covers all the key offshore e&P projects and gas infrastructure development plans in the Black sea region. the conference brings together key decision makers from romania, Bulgaria, Georgia, turkey, russia and Ukraine.

organised with the support of the Ministries of energy of Bulgaria and romania, the 4th edition of the Black sea oil and Gas conference has provided a strategic overview of the current stage of the upstream and midstream projects in the region, debates about the challenges in each sector and in-depth analysis of the industry trends, funding opportunities and technological needs presented directly by the project owners.

“A very prestigious and useful event, where you can meet professionals and stakeholders of all spheres of oil and gas” Managing Director, Bon MArine LoGistics

“Great coverage of all aspects of the oil and gas industry in the Black sea. A must attend event for those with interest in the industry within this region.” Business Development Manager, WooD GroUP

“A true review of Black sea region infrastructure development in a friendly atmosphere. thanks to the organisers” Business Development Manager, sPiecAPAG

“the conference is becoming the definitive conference for the Black sea region. Good mix of e&P companies, contractors, tcos & Government. Looking forward to next year.” Managing Director, BLAck seA oiL AnD GAs

“A very well organised and informative conference! the networking opportunities have provided some very useful contacts for our business going forward.”senior Geoscience it specialist, British GeoLoGicAL sUrvey

“this is an honest conference, focusing on relevant topics”vice President exploration & Appraisal, oMv

“it has been an excellent event with a very nice venue. the content of the presentations and debates have been rich and informative”

ceo, cAtoni GroUP

4th edition of the conference 149 Attendees from 21 countries30 speakers and discussion leaders8 sessions 2 round tables and 1 panel discussions1 evening cocktail receptions1 Gala dinner 96 % Attendees are satisfied with the conference20 official partners

SPEAKErS AND DISCUSSION LEADErS 2016

ErIC rASMUSSENDirector natural resources eUroPeAn BAnk for reconstrUction AnD DeveLoPMent

GArY INGrAMvP exploration & AppraisaloMv eXPLorAtion& ProDUction

Dr. JörG KöhLIhead of the offshore safety, gas and oil policies teameUroPeAn coMMission

TEODOrA GEOrGIEvAexecutive officericGB ADGAs interconnector Greece – BULGAriA

GULMIrA rzAYEvAresearch AssociateoXforD institUte for enerGy stUDies

MArK BEACOMManaging DirectorBLAck seA oiL AnD GAs

SErGIY MAKOGONexecutive Director, strategy and Business Development UkrtrAnsGAZ

ANDY rIDDICKsenior Geoscience it specialistBritish GeoLoGicAL sUrvey

PETEr KADArJAKDirectorreGionAL centre for enerGy PoLicy reseArch (rekk)

KArL LEIDENfrOSTManaging Director romaniahABAU PPs PiPeLine systeMs

JOhN rOBErTSenergy security specialistMethLinks

SOSO GUDUShAUrIchief GeologistGeorGiAn oiL & GAs corPorAtion

MIrEK TOPOLáNEKMember of the Boardof Directors international Development and Public Affairs DirectoreUstreAM

Dr. rOLf SChIffEr Directorschiffer Geo consULt

DUMITrU BECSENESCUPresidentAntAres GroUP

CIPrIAN ALICDirector for european funds and international relationstrAnsGAZ

MAGSUD MAMMADOv external relations DirectortAnAP

ALI SOKMENAssociate AnalystcontroL risks

CrISTIAN BUSUsecretary of stateMinistry of enerGy, roMAniA

vALErI TrENDAfILOv state expertMinistry of enerGy,BULGAriA

ATANAS GEOrGIEvchief editor & PublisherPUBLics.BG

GEOrGE PANOPOULOSceoMAnAGeMent force GroUP

ILIA JANJALAShvILIchief specialiststAte AGency of oiLAnD GAs of GeorGiA

IvAN hINOvSKIchairmanBULGAriA enerGy& MininG forUM

JULIAN POPOv chairmanBUiLDinG PerforMAnce institUte eUroPe

KAMEN MANEvhead of financial DivisionBULGArtrAnsGAZ eAD

KONSTANTIN DELISIvKOvexecutive DirectorBULGAriAn feDerAtionof the inDUstriAL enerGy consUMers (Bfiec)

SOTIrIS NIKASchairmanDesfA

TODOr GALEvsenior Analyst,economic Programcenter for the stUDyof DeMocrAcy

vALErI TrENDAfILOvstate expertMinistryof enerGy BULGAriA

COUNTrY BrEAKDOwNATTENDEE LEvEL

SOME Of 2016 PArTICIPANTS

34% c-level executives20% regional Business Development Managers 15% senior experts and consultants7% Marketing & commercial Managers7% exploration and operation Managers5% Government representatives4% Geology Managers3% financial Managers3% Large Projects Managers2% other

romania

france

Malaysia

turkey

italy

Belgium

Uk

hungary

Austria

the netherlands

Germany

Poland

Bulgaria

Georgia

oman

Greece

Ukraine

slovakia

russia

norway

Azerbaijan

SOME Of ThE PrOJECTS ThAT wE DISCUSSED IN 2016Midia Gas Development (Ana and Doina)

The future of Eastring in Europe

Undercrossing Danube river between Romania and Bulgaria & Iasi - Ungheni

interconnector

Exploration challenges in the Black Sea

Bulgaria - Greece Interconnector

Ukrainian Gas Transmission System

Bulgaria – Romania – Hungary – Austria pipeline project

TANAP – current progress,challenges and prospects

whAT wE hEArD IN 2016?

ErIC rASMUSSENDirector natural resources

EuropEan Bank for rEconstructionand dEvElopmEnt

MArK BEACOMManaging Director

Black sEa oil and Gas

KAMEN MANEvhead of financial Division

BulGartransGaz

vALErI TrENDAfILOv state expert

ministrY of EnErGY BulGaria

the eBrD has adopted an energy strategy, which outlines the operational approach to some key priorities associated with the energy transition in the coming few years:

• Supporting upstream oil and gas and services. From SMEs to regional majors and participants in large consortia

• Support to midstream oil and gas projects including upgrade and development of pipelines, underground gas storage facilities, LnG plants.

• EBRD is working to finance the Greece-Bulgaria interconnection, likely one of the first interconnectors to be project financed in the region.

important regulatory challenges were addressed recently when the President of romania signed the BrUA law and resolved the beach crossing issue in the Black sea which allows the offshore gas to connect to the romanian grid.

there are big chances that Black sea oil and Gas operator will be the first to go to production phase for the Midia Gas Development with first gas projected for 2019.

Things to be solved:

• Offshore Safety Directive regulatory body

• Gas Market fully liberalized

• Stable fiscal regime

• Interconnections with the neighbouring countriesBulgaria – romania – final stage of the project, 25 km length, capacity: 0,5 - 1,5 bcm/y, scheduled commissioning for 2016

• Bulgaria – Turkey – onshore gas pipeline of 200 km, capacity: 3 bcm / y, scheduled commissioning: 2020

• Bulgaria – Greece – interconnector operated by ICGB AD

• UGS Chiren Expansion Project: Completion: 2022 / Investment (for the overall project): ~ 220 000 000 eUr

• Large-scale infrastructure projects, i.e. Gas Hub “Balkan” - the feasibility study shall be carried out

• Eastring - June 2016 a Memorandum of Understanding was signed for the eastring project between Bulgartransgaz eAD and eustream

companies with offshore operations in Bulgaria:• Petroceltic - Three producing gas fields in offshore Bulgaria in the Black sea

• Total, OMV, Repsol - Drill ship Noble Globetrotter II drilled the first deep water well in Bulgaria for block khan Asparuh from April to september 2016

• Shell – In October 2016, CGG with Oceanic Endeavour started seismic acquisition survey for shell - “Balkanides”

the information from oil and gas exploration is stored and available at the national Geological fund and in the national core storage of the Ministry of energy

ThE OvErvIEw Of ThE KEY OIL AND GAS OPPOrTUNITIES IN BULGArIA

BLACK SEA OIL AND GAS UPDATESOf ThE PrOJECT

EBrD’S rOLE IN fUNDING UPSTrEAM AND MIDSTrEAM OIL AND GAS PrOJECTS

ThE MAJOr ACTIvITIES fOr ThE DEvELOPMENT Of BULGArTrANSGAz EAD

INfrASTrUCTUrE ArE:

whAT wE hEArD IN 2016?

MAGSUD MAMMADOvexternal Affairs Director

tanap

SErGIY MAKOGONexecutive Director

strategy and Business developmentukrtransGaz

JOhN rOBErTSenergy security specialist

mEthinks ltd.

Dr JOErG KOhELIhead of the offshore safety,

gas and oil policiesEuropEan commission

facts:• Shareholders: SOCAR 58%, BOTAŞ – 30%, BP 12%• Total length – 1850 km – Land acquisition completed;• 925 km of pipeline welding were completed• Capacity planned for 2018: 6bcm/y; 2026 – 31bcm/y• Pipeline size varies from 56 inch to 46 inch and 2x 36 inch• Compressor stations: 7• Metering stations: 4• Pig stations: 12• Block valves Stations: 49

tAnAP enables the neighbouring countries on the supply corridor to construct new gas transmission interconnectors in europe.

Gas transit through the territory of Ukraine to europe: 142,5 bcm per year. Gas delivery from europe to Ukraine: 21,4 bcm

Ukraine’s deadline for market liberalisation is 2018

new opportunities for Western shippers:

1. since Q2 2017 open gas market for all consumers of natural gas 33,8 bcm/y

2. short-haul services • transportation services between PL, SK, HU, RO via Ukraine • transportation services from border to UGS and vice versa

3. Huge available storage capacity • as for now storages are filled at 46% (14,4 bcm/30,8 bcm)

the geopolitic situation in the Black sea had direct consequences on offshore Ukraine, impacting four blocks:• Skifska: Shell signs agreement to develop PSA in 2012 but abandoned it in March 2014. • Prykerchenska: Vanco signs agreements i n 2006 and 2013. • Forinska: No bidding interest. • Tavriya: No bidding interest.

there are two important pipeline projects initiated by russia:nordstream 2: estimated cost (2015): $11 billion for 1,220 km-long pipelines to carry 55 bcm/y to europe. european commission approval in doubt;the Polish rejection of nordstream 2 partnership arrangements.

turkstream: 10 oct 2016. russia & turkey signed turkstream iGA.the project poses risk and challenges Ukraine gas transit.

Legal aspects for operators and owners of installations:

• The Offshore Safety Directive - Directive 2013 / 30 EU of the european Parliament and the council states that all existing installations (more than 1000) have to comply with the european Directive by 19 July 2018.

new rules for the offshore industry:

• Major accident prevention policy

• Internal emergency plans

• External emergency plans

• Build and maintain a strong safety culture jointly with workforce

SAfETY Of OffShOrE OIL AND GAS OPErATIONS TANAP

EU - rUSSIA COOPErATION: NEw PIPELINE CONNECTIONS frOM TUrKSTrEAM TO

NOrDSTrEAM 2

UKrAINIAN GAS TrANSMISSION SYSTEM AS AN INTEGrAL PArT Of NOrTh – SOUTh COrrIDOr

whAT wE hEArD IN 2016?

SOTIrIS NIKASchairman

dEsfa

CIPrIAN ALICDirector for european funds and

international relationstransGaz

TEODOrA GEOrGIEvAexecutive officer

icGB ad

• Construction of a truck-loading station in the location of the revithoussa LnG terminal and all relevant facilities

• Construction of an Interconnection Point with TAP

• Physical reverse flow in the Trans-Balkan Pipeline

• Greece-FYROM Pipeline: Recently (October 14th) DESFA and Mer signed an MoU for examining the feasibility of an interconnector between the Greek and fyroM gas transmission systems, allowing the diversification of supplies of fyroM e.g. LnG from revithoussa terminal

• The development of the national transmission system on the territory of romania, as part of Bulgaria - romania - hungary - Austria corridor, known also as BrUAPipeline length: 550 km;estimated value: € 560 mil. estimated deadline: 2020

• Black Sea shore — Podișor (RO) pipeline for taking over the Black sea gasPipeline length: 307 kmEstimated value: €278,3 mil.

• Development of the NTS in the Northeast region and developments with the republic of Moldovainvestments: new pipeline section ii: 104 km Minimum estimated value: €119,1 mil.

shareholder structure: Bulgarian energy holding and iGi Poseidon (50/50 company controlled by DePA and eDison)

Details of the project:Length: 182 KmCapacity: 3-5 bcm/yDiameter: 32”construction cAPeX: € 220 Msovereign guarantee: € 110 M

opportunities:- ongoing development of Procurement Package for ePc and line pipe supply under Bulgarian PPA.- Package for the tenders to be finished at the end of 2016. - Launching of tenders planned in the beginning of 2017.

MAIN PrOJECTS DEvELOPEDBY TrANSGAz: BULGArIA - GrEECE INTErCONNECTOr

ThE MAIN PrOJECTS DEvELOPEDBY DESfA IN GrEECE

rOUNDTABLE DISCUSSIONS: MAxIMISING ThE ECONOMIC vALUEOf ThE BLACK SEA PrOJECTS

rOUNDTABLE DISCUSSION LEADErS:

At the end of the first day of the conference, on 20th october, two parallel roundtables took place: one for the companies interested in the challenges of the offshore projects and one dedicated to the regional conditions for the development of cross-border gas infrastructure.the discussions were extremely beneficial for the participants and facilitated an interesting dialogue regarding the most pressing issues of the project owners and enabled them to understand the commercial opportunities from the Black sea.

Ministry of EnErgy rEpublic of bulgaria

Sponsors

Media Partners

Official support

Organiser

PArTNErS AND SPONSOrS 2016

Cocktail reception Sponsor

this is a great opportunity for your company to be the official host of the welcoming reception and deliver a speech to all the participants at the Black sea oil and Gas conference.

Participation with an exhibition stand

capitalise on the opportunity to be among the decision makers and display your products and services in the area where the networking takes place! if your clients are from the upstream or midstream sectors, build your brand during the conference and secure partnerships on the spot!

hOw TO GET EvEN MOrE rOI frOM ThE CONfErENCE?

SOME Of ThE SPONSOrShIP ExAMPLES:

Participating in an event where the attendees are representatives of the whole supply chain for the upstream and midstream projects will boost your brand visibility and credibility!

If you are interested in discussing sponsorship or exhibition opportunities, please contact us:

natalia kravchenko / sales Manager / n.kravchenko@globuc.com / 44 (0) 203 567 1347

Ministryof EnErgyroMania

Ministryof EnErgy rEpublic

of bulgaria

5th Annual conference25 - 26 October 2017 • Bucharest, Romania www.globuc.com/blackseaoilgas

BLACK SEA OIL AND GAS BLACK SEA OIL AND GAS

KEY TOPICS IN 20172017 is the year for the final Investment Decision for the Black Sea discoveries

Latest pipeline technology and solutions for Integrity management, leak detection coating and SCADA systems

regulatory policies regarding gas market liberalisation and fiscal regime

regional gas infrastructure development projects (interconnectors, underground gas storage, LNG and cross – border cooperation)

Implementation of the EU Safety Directive and the current stage of the Offshore Competent Authority

regional gas market analysis in 2017

roundtable discussion with the offshore operators discussing the upcoming tenders and challenges in the Black Sea

Digital oilfields and the latest technology for drilling and geology

Effective and efficient operations and optimisation strategies

In-depth analysis related to geopolitics, market trends, oil and gas forecasts of prices

rEGISTrATION Of PArTICIPANTS MArK YOUr CALENDAr

for early registration, speaking at the conferenceand sponsorship inquiries, please contact:

Alice Sapcaliu Project Manager e: a.sapcaliu @globuc.com T: +44 203 567 1349 www.globuc.com/blackseaoilgas

foLLoW Us:

rEGISTEr BEfOrE 30th JUNE 2017 AND SAvE € 250

next year, on 25 - 26 october, the Black sea oil and Gas conference is returning toBucharest, romania

Please review options to get involved in next year’s event:

register as a delegate take advantage of the early bird discount and save 250 Euro by registering before 30 June 2017

Present a paper the best way to promote your company’s projects and capabilities regionally, to the project owners and c-level execurives from romania, Bulgaria, Georgia, turkey, russia and Ukraine.

Sponsor the event take advantage of the best sponsorship offer and let us know how we can help your company grow regionally.

GET IN TOUCh wITh US

CONfErENCE DELEGATE fEE

rEGISTrATION OPTIONS

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* you can also make payment in Us dollars or Pound

ThrEE wAYS TO rEGISTEr fill out the registration form below and send via email: account@globuc.com register online: www.globuc.com//blackseaoilgas fax the form: +44 845 154 2544

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