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contents

our vision, mission, values

our strategies

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about us 04highlights 05

domestic exploration and production activities

international exploration and production activities

tpic, tpao’s subsidiary

services and technologies

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To become a regionally effective world-class energy company meeting Türkiye’s oil and natural gas demand and to be the most desired company to work with.

our vision

To bring out oil and natural gas potential of Türkiye and provide them for the use of Turkish economy, supply new sources of income via international activities and play an effective role in the energy sector, by also actively participating in Türkiye’s process of being an Energy Corridor.

our mission

MeritEffectiveness and efficiencyTeamwork and communicationOpenness to change and innovativenessEnvironmental awarenessEmployee satisfactionShare of responsibility, knowledge,experience and authorizationReliability and honesty

our values

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our strategiesTPAO’s aim is to meet all Türkiye’s hydrocarbon demand in near future with increasing national production and also an increasing share of its production outside Türkiye.

To succeed in developing our national and international positions, we must beat the competition from the world class oil and gas companies. To achieve this target, TPAO’s Strategic Direction;

Growth by; • Enlarging its international portfolio and gaining a leading player role especially in the nearby geography, • Discovering hydrocarbon potential of the country, • Increasing offshore investments,• Establishing consortia with the giant companies, sharing risks, transferring know-how and technology.

Efficiency by;

• Measuring and improving the company efficiency in the operational perspective with its performance criteria as determined in the Corporation’s Score Card, • Giving priority to technological innovation.

Integration by;

• Being effective player in natural gas storage, CNG and pipeline, • Carrying out renewable energy projects and looking for cooperations in this regard, • Offering technical services supplied by Exploration, Drilling, Well Completion Departments and Research Center.

Employee Development by;

• Achieving highly motivated experts and learning individuals who desire to reach company goals through professional training, • Integrating new personnel swiftly and efficiently.

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TPAO was founded in 1954 by Law No. 6327 with the responsibility of being involved in hydrocarbon exploration, drilling, production, refinery and marketing activities as Türkiye’s national oil company. Until 1983, as an integrated oil company, it was engaged in all activity fields of oil industry from exploration to production, refinery, marketing and transportation. Today, TPAO is a national oil company involved merely in upstream (exploration, drilling and production) sector.

who we are?

TPAO was structured as having its headquarters in Ankara and also 3 District Managements in Batman, Thrace and Adıyaman with approximately 5,000 employees throughout Türkiye and its branch offices abroad. To ensure energy security supply of the country, TPAO conducts its international activities especially in Caspian Region, North Africa and Middle East. In this context, TPAO carries out its exploration and production activities actively in Azerbaijan, Kazakhstan, Libya and Iraq. TPAO has been continuing to search and negotiate for business opportunities in other hydrocarbon rich regions such as Syria, Turkmenistan, Iran, Ukraine, Russia, Brasil, Colombia, Algeria, Egypt and Sudan.

where we operate?

TPAO has four core activities in the oil sector.

• Exploration, Drilling, Production and Well Completion• Natural Gas Storage• Participation to Oil and Natural Gas Pipeline Projects• Oil Trade, Distribution and Transportation (TPIC, TPAO’s Subsidiary)

what we do?

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- TPAO added a new 1,500 HP drilling rig having 5,000-5,500 m. capacity to its rig fleet.

highlights

- TPAO’s offshore seismic surveys performed in the last 6 years passed beyond the level done in 55 years of its history.

- Within the scope of TPIC’s joint exploration activities in the Gonzalez Block, in Catatumbo Basin with ECOPETROL, the first exploration well RZW-3 resulted in oil discovery and in this context production tests are ongoing.

- Yuvaköy-1, Türkiye’s deepest well with 7,216 m. was completed by TPAO.

- TPAO and Petrobras signed an Agreement for deep water drilling in the Black Sea, within this context, Leiv Eiriksson, one of the biggest platforms in the world, passed through the Bosphorus and reached to Sinop.

- TPAO realized an oil discovery in Libya through its own operatorship which considered as the most important discovery of the region in the last years.

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In accordance with our company’s vision, mission and strategies, exploration and production activities carried out in 2009 have intensively covered offshore fields as well as the Thrace, Middle Anatolia Basins, Eastern Anatolia, South Eastern Anatolia Regions.

TPAO which has set its vision and mission for meeting Türkiye’s continuously increasing oil and natural gas demand from own resources, also views and adopts itself with the integration process of international oil companies and carries out its studies for the establishment of a competitive, secure, transparent and balanced market conditions for all oil companies engaging in oil and gas exploration business in Türkiye’s oil market.

In this respect, TPAO has made a boom in its domestic investments by extending its activities in all unexplored basins of Türkiye and especially Black Sea.

Especially, following Ayazlı gas discovery in the Black Sea, new exploration, establishment processes, well drilling programs were carried out and additional drilling operations were performed on offshore Akçakoca. In addition, 2D and 3D seismic surveys were realized to expose the hydrocarbon potential of onshore fields lying along the territorial waters of the Black Sea.

Total amount of offshore seismic surveys realized in the last 6 years is much more than seismic surveys performed during TPAO’s 55 years of its history. This situation confirms the importance attached to offshore hydrocarbon explorations in recent years.

Designations of new structures as a result of exploration studies have great importance for TPAO’s exploration objectives. To reveal hydrocarbon potential of the region, share investment risk and transfer of the latest exploration technologies, TPAO continued its studies in 2009 to establish joint ventures with foreign oil companies.

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We Are Exploring All Offshore Fields Of Türkiye

In the last 6 years including 2009, a total of approximately 75,000 km of 2D and 14,000 km2 of 3D offshore seismic surveys were realized. With the evaluation of acquired geophysical data, it is planned to intensify drilling activities at offshore fields in the coming years. With these studies, it has been targeted to give a further fillip to the country’s economy by probable oil and natural gas discoveries.

Throughout 2009, interpretation studies of 2D seismic lines that were acquired in 2007 and 2008 in the Antalya, Mersin and İskenderun Bays have continued. After these interpretation studies, to describe the appeared leads better, it was scheduled to accure more seismic data in 2010.

Also, in the last quarter of 2009, the required underwork preparations were finished rapidly which were needed for farm-out activities and the negotiations were started in accordance with the target of mutual explorations with foreign companies interested in these fields.

Furthermore, it was planned to start exploration studies with drilling activities at the latest 2011 in Mediterranean (offshore) fields.

With great perseverance, enthusiasm and expectations, TPAO has given priority to realize exploration, drilling and production investment programs also at onshore fields.

Offshore exploration-drilling operations are being carried out intensively. In this scope, TPAO has drilled 2 offshore wells in the Western Black Sea through PETROL OFİSİ -TIWAY-OIL (TOREADOR) -STRATIC partnership in 2009.

In 2009, TPAO performed 29 12/30 crew/month geological field survey with 5,880 km2 of areal coverage in 11 different oil exploration zones at the Thrace, Marmara, Aegean, Black Sea, Mediterranean, Central, Eastern and South Eastern Anatolia Regions.

Leiv Eiriksson, one of the biggest platforms in the world, is in the Black Sea...

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Drilling Activities

In 2009, TPAO realized most of its drilling activities at Thrace, South Eastern Anatolia Regions and other regions. Also, two offshore wells within the scope of Western Black Sea Project were drilled in Ereğli Gulf, one of which (Batı Ayazlı-1) completed as gas well.

Although drilling of 79 wells were planned in 2009, drilling activities were realized in 89 wells due to good results and achievements obtained. The drilling of 78 of them was completed. TPAO accelerated its oil and natural gas exploration and drilling activities 2 folds at onshore and offshore fields in the last 5 years. In addition to the explored basins, TPAO has continued its exploration and drilling activities at the unexplored basins such as Syria and Iraq border, Mardin, Adapazarı, İstanbul, Sinop, Burdur etc. and acquired significant data to determine hydrocarbon potentials of these fields.

Discoveries

Crude Oil2 wells in X. Concession Region, 4 wells in XI. Concession Region, 13 wells in XII. Concession Region and 3 wells by TPAO - NVT PERENCO joint venture in XI. Concession Region were drilled and completed as “oil wells”.

Natural Gas4 wells in I. Concession Region, 1 well in X. Concession Region, 2 wells by TPAO - AMITY OIL joint venture in I. Concession Region and 1 well by TPAO - PETROL OFİSİ - STRATIC - TIWAY OIL joint venture in II. Concession Region were drilled and completed as “gas wells”.

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Yuvaköy-1

Demre-1

Boyluca-1

Kaş-1

Çelikli-101

Büyükalan-1

Çorlu-3/A

Silopi-1

Akkuyu-1

Cumalar-1

Kaynarca-1

Okçular-1

Province

Burdur

Antalya

Batman

Antalya

Siirt

Burdur

Tekirdağ

Şırnak

Adana

Adana

Tekirdağ

Siirt

Spud Date

2007

1985

1979

1988

1985

1988

1985

2006

1989

1988

1982

2005

Completion Date

2009

1987

1982

1989

1986

1989

1986

2007

1990

1989

1983

2007

Total Depth (m)

7,216

6,111

5,745

5,298

5,195

5,190

5,043

4,950

4,871

4,829

4,828

4,494

Joint Domestic Exploration, Development and Production Activities

OnshoreTPAO-CHEVRON-NVT PERENCOWithin the framework of TPAO-CHEVRON Joint Exploration and Development Agreement signed in 1988, from March 23 to April 03 2009, TPAO team conducted auditing studies at CHEVRON and NVT PERENCO offices and prepared an audit report.

TPAO-TIWAY OILWithin the framework of TPAO-TIWAY OIL partnership under the Exploration and Development Agreement of Cendere Field, the drilling of Cendere-22 well was completed as oil well and put into production. A Norwegian company called TIWAY OIL has purchased TOREADOR’s shares in October 2009.

TPAO-NVT PERENCOWithin the framework of TPAO-NVT PERENCO Joint Venture Agreement, oil production activities from South Eastern Anatolia Region have continued in 2009. Throughout the year, the drilling of 4 wells were completed as oil wells and studies for 1 well are ongoing.

TPAO-AMITY OILUnder the Thrace Basin Joint Operating Agreement with AMITY OIL, drilling of 3 wells were completed 2 of which were resulted in gas wells.

OffshoreTPAO-PETROL OFİSİ-TIWAY OIL-STRATICUnder the ongoing Black Sea Joint Operating Agreement, parties have signed the Third Amendment covering TIWAY OIL’s (TOREADOR) sale of its 26.75% share to PETROL OFİSİ.

In 2009, natural gas production has continued from Ayazlı, D.Ayazlı and Akkaya Production Platforms. The manufacturing of Akçakoca Production Platform continued in 2009 as well and it is planned to be installed at its location in 2010.

TPAO-PETROBRASTPAO and PETROBRAS signed Rig Farmout Agreement (RFOA) on April 30, 2009 for deep water drilling in the Black Sea with the platform Leiv Eiriksson. PETROBRAS has declared its intention to transfer its 50% share (25% of total share) to EXXONMOBIL and the First Amendment to the JOA was signed by the parties on January 11, 2010.

TPAO-EXXONMOBILWithin the context of Joint Operating Agreement between TPAO and EXXONMOBIL, 2D and 3D seismic data acquisition studies have been conducted at Kastamonu and Samsun blocks by the French company CGG. Besides, tenders for site survey and shallow coring study have been realized by EXXONMOBIL.

TPAO (50%) - PETROBRAS (25%) - EXXONMOBIL (25%)

TPAO (50%) - EXXONMOBIL (50%)

TPAO (51%) - PETROL OFİSİ (26.75%)TIWAY OIL (10%) - STRATIC (12.25%)

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Western Black Sea Exploration, Production and Development ProjectIn 2009, TPAO and its project partners (PETROL OFİSİ, STRATIC and TIWAY OIL) have continued natural gas production activities as well as studies for Akçakoca field. Within the scope of Phase I, gas production is being performed from 7 wells through 3 offshore platforms.

In the scope of the “Akçakoca Field Development Plan”, manufacturing of production platform is continuing in Köstence/Romania.

Additionally, in 2009, two offshore wells within the scope of Western Black Sea Project were drilled in Ereğli Gulf, one of which (Batı Ayazlı-1) completed as gas well.

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Domestic Crude Oil Production In 2009, TPAO produced 12,410,300 barrels (1,818,312 tons) of crude oil from its fields, which constituted 75% of the total crude oil production of Türkiye. 71% of the total oil production is from Batman Region, 28% is from Adıyaman Region and 1% is from Thrace Region.

Within its policy of keeping the production at the maximum level, TPAO has continued its domestic reserve development and production activities. Declining oil production from heavy oil reservoirs poses a technical challenge. Several reservoir studies are embarked on to offset the production decline and top the upside potential.

Domestic Natural Gas ProductionIn 2009, TPAO’s natural gas production was 277,334,366 sm3. The gas produced in Thrace Region was sold to 29 local companies, the gas produced from Çamurlu field in Batman Region was sold to a regional boarding school and to two companies in the region. In Adıyaman Region, gas released from produced oil was sold to a company and a school.

Enhanced Oil Recovery ProjectsBatı Raman Field Enhanced Oil Recovery • 

ProjectRaman Field Production Enhancement • 

ProjectGarzan Field Water Injection Project• Batı Kozluca Field Water Alternating Gas • 

(WAG) Injection Project

Kuzey Marmara and Değirmenköy Fields Underground Natural Gas Storage ProjectCommercial activity in Kuzey Marmara and Değirmenköy Fields Underground Natural Gas Storage Facilities was started on April 13, 2007. The first storage period was completed succesfully and injection - withdrawal operations are being continued in the second storage period.

Gas demand of our country tends to increase, therefore new storage facilities are urgently needed. Ministry of Energy and Natural Resources and BOTAŞ demanded TPAO to increase the natural gas storage and withdrawal capacity rapidly. Therefore, TPAO anticipates to increase the daily withdrawal capacities of existing facilities up to 50 million sm3 within 3 phase (Phase I, Phase II, Phase III) by the end of 2014 and necessary works for Phase I and Phase II have already been started in 2008.

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es International activities have made TPAO an important actor in the region since the early 1990’s.

Because of the necessity of adding new reserves and turning these reserves into production immediately to achieve its strategic targets, international activities have become gradually more important. Being aware of the strategic importance of energy, for ensuring Türkiye’s security of supply, TPAO has set up the roadmaps and action plans for achieving its objectives in the years ahead.

TPAO is in the North Eastern Coast of Caspian;

KazakhstanTPAO conducts its activities in Kazakhstan through a joint venture company, KazakhTurkMunai (KTM) Ltd. in which TPAO holds a 49% share and KazMunaiGas has 51%. KTM Ltd. has one concession licence in Aktau Region and two in Aktobe Region of the Western Kazakhstan. Exploration and production activities are ongoing with a total of 26 wells located in 7 fields in these three licences.

By the end of 2009, yearly crude oil production is 1.7 million barrels (TPAO’s share is 0.9 million barrels), cumulative crude oil production is 23.4 million barrels (TPAO’s share is 14.9 million barrels) and crude oil reserves are 32.4 million barrels (TPAO’s share is 16.6 million barrels).

TPAO is in the West Caspian Sea;

Azerbaijan Exploration-Production and Transportation ProjectsTPAO is currently a participant of three exploration, development and production projects which are Azeri-Chirag-Guneshli (6.75%), Shah Deniz (9%) and Alov (10%) Projects in Azerbaijan.

Furthermore, TPAO has a share of 6.53% in the BTC Co. which is carrying out all activities of Baku-Tbilisi-Ceyhan Main Export Crude Oil Pipeline Project and 9% share in South Caucasus Natural Gas Pipeline Project which transports Shah Deniz gas to Turkish-Georgian border.

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Azeri-Chirag-Guneshli (ACG) ProjectIn 1994, the Joint Development and Production Sharing Agreement for ACG Project was signed in Baku among the State Oil Company of the Azerbaijan Republic (SOCAR) and the consortium constituted by the foreign companies.

Throughout the ACG Project having 5.6 billion barrels of oil reserves, and producing 1.4 billion barrels of crude oil upto now (TPAO share; 71.7 million barrels), crude oil production is foreseen to reach 854,000 barrels/day in 2010. In 2009, with an average of 816,700 barrels/day, 298.2 million barrels of oil (TPAO’s share; 6.3 million barrels) was produced.

Shah Deniz ProjectThe Shah Deniz Structure is located in the offshore South Caspian Sea, 70 km southeast of Baku and 70 km southwest of the Azeri-Chirag-Guneshli field. The concession has an areal coverage of approximately 860 km2.

With the Shah Deniz Phase-1 Field Development and Construction Decision, construction period

started in 2003 and commercial production was started on March 7, 2007 and is currently continuing with 4 wells. In 2009, 6.3 billion m3 natural gas (TPAO’s share 473 million m3) and 13.1 million barrels of condensate (TPAO’s share 988 thousand barrels) were produced and by the end of 2009, cumulative production reached to 16.7 billion m3 natural gas and 35 million barrels of condensate.

Within the scope of Phase-2, it is estimated that construction decision will be taken in 2012 and the first gas delivery will be realized in 2016.

Alov ProjectAlov Exploration Project covers the Araz-Alov-Sharg prospective structures in the Middle of the Southern Caspian Sea, having estimated reserves of 385 billion m3 of natural gas and 5 billion barrels of oil. Seismic acquisation and interpretation works have been completed and drilling of the first exploration well is waiting for the determination of legal status of Caspian Sea.

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Pipeline Projects of TPAO Contributing to the Energy Corridor

Baku-Tbilisi-Ceyhan Main Export Crude Oil Pipeline (BTC) Project

The transportation of oil produced in Caspian Region, especially from ACG Project in Azerbaijan to the world markets, in a safe, secure, reliable and environmentally friendly way is continuing through the BTC Project which is the first step of East-West Energy Corridor.

Currently, transportation of a large portion of ACG oil, all of Shah Deniz condensate and some Kazakh Tengiz oil is continuing and from Haydar Aliyev Terminal 287.6 million barrels of oil was loaded to 373 tankers in 2009. Cumulatively, 801 million barrels of Azeri and Kazakh Oil have been transported through BTC Pipeline to the world markets with 1,021 tankers by the end of 2009.

South Caucasus Natural Gas Pipeline (SCP) Project

Within the scope of SCP Project, Shah Deniz natural gas is being transported to Georgian-Turkish border. The SCP passing through the same corridor with BTC is about 690 km in length. The pipeline has a transportation capacity of 8.1 billion m3 of natural gas to Turkish border with one compressor station in Sangachal Terminal in line with the terms of AGSC-BOTAŞ Sales and Purchasing Agreement (SPA). However, it is possible to expand this capacity up to 22 billion m3 in a year by adding compressor stations.

In 2009, totally 6.1 billion m3 natural gas was transported and 4.8 billion m3 of this amount was sold to BOTAŞ. The main target of the project is to transport the gas that will be produced from the Caspian Region to Europe via Türkiye in the future.

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LibyaTurkish Petroleum Overseas Company (TPOC), a wholly owned subsidiary of TPAO, has carried out its exploration activities in Libya since 2000.

Block NC188-NC189 Exploration ProjectAn Exploration and Production Sharing Agreement (EPSA) was signed between Turkish Petroleum Overseas Company (TPOC) and the National Oil Company of Libya (NOC) on block NC188 in Ghadames Basin and block NC189 in Sirte Basin on February 22, 2000. TPOC is the operator in both licences and signed a partnership agreement with ONGC-Videsh Ltd. (OVL), a subsidiary of the Indian National Oil Company (ONGC). The participating interests of the parties are 51% for TPOC and 49% for OVL.

Two exploration wells were drilled in the NC189 concession. B1-NC189 exploration well was completed as dry hole with oil shows on April 07, 2009. C1-NC189 exploration well was spud on May 31, 2009 and completed as dry hole on November 19, 2009

Block 147/3-4 Exploration Project EPSA was signed between NOC and TPOC on December 10, 2005. Minimum exploration commitment for Block 147/3-4 covering an area of 2,783 km2, was the drilling of two exploration wells and seismic data acquisition during the five years of exploration period.

A new oil discovery was realized by drilling of A1-147/3, B1-147/3 and C1-147/3 wells in 2009. The drilling operations are being continued with additional wells. Block 147/3-4 has a significant petroleum potential; therefore, additional prospects were planned to be drilled before December 2010.

New Ventures

SyriaIn accordance with the terms of the agreement signed between TPAO and SPC (Syrian National Oil Company) in Ankara on January 4, 2008, it is planned to establish a joint company for developing exploration and production projects in appropriate licences.

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IranThe Memorandum of Understanding signed between Turkish Ministry of Energy and National Resources and Iranian Petroleum Ministry on October 17, 2009 has been extended for three months. In this context, instead of phases 22-23-24 of South Pars Field Development and Production Project, new phases had been offered for the evaluation. The technical and commercial evaluation studies are in progress for the aforementioned new phases.

Iraq TPAO has been working closely with the Iraqi Ministry of Oil for exploration, development and production opportunities in Iraq since 1994.

In 2009, TPAO offered three bids for the Iraq’s First Petroleum Licensing Round and another three fields for the Iraq’s Second Petroleum Licensing Round organized by the Iraqi petroleum authority PCLD (Petroleum Contracts and Licensing Directorate) as a partner and operator.

As a result, a consortium including TPAO was awarded a contract to develop Badra Oil Field. The consortium consists of GAZPROM NEFT (operator/Russia), KOGAS (South Korea), PETRONAS (Malaysia) and TPAO. TPAO holds 10% share in the consortium. The development activities will be commenced after the official disclosure of the effective date.

Other CountriesIn addition to the activities mentioned above, TPAO has been continuing to search and negotiate for business opportunities in other hydrocarbon rich regions such as Russia, Ukraine, Turkmenistan, Brasil, Colombia, Algeria, Egypt and Sudan.

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current projects / new ventures

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TPIC was established in 1988 in Channel Islands, Jersey, United Kingdom to operate in all branches of oil industry comprising exploration, drilling, field development, production, transportation, refining, crude oil and oil products trading and marketing.

Exploration and Production Activities

TPIC focused its exploration and production activities on Colombia and Iraq.

ColombiaGonzalez BlockWithin the scope of joint exploration activities in the Gonzalez Block, in Catatumbo Basin with ECOPETROL, the first exploration well, Rio Zulia West-3 (RZW-3), was spudded in November 2009. Drilling program was completed in March 2010 and targets were drilled as planned. RZW-3 well resulted in oil discovery and in this context production tests are ongoing.

Maria Conchita BlockIn June 2009, the beginning of the Phase-I started for a period of 18 months. Throughout the phase in 2010, the acquisition, processing and interpretation of 120 km2 3D seismic data will be performed upon completion of the negotiations with the indigenous communities. In Phase-2, an exploration well is going to be drilled in 2011.

IraqWithin the scope of Qasab Oil Field development activities, feasibility report for field was completed and delivered to Iraqi Ministry of Oil in September 2009. Consequently, TPIC will search opportunities to develop the field by PSA or Service Contracts in the scope of a possible tender opened by the Iraqi Ministry of Oil or by mutual relationships.

Oil Field ServicesIn 2009, TPIC enhanced oil field services by increasing the number of crews both in Türkiye and abroad. TPIC drilled over 93,000 m in depth in 57 wells (3 wells abroad) and completed 285 wells (26 wells abroad) in 2009. Compared to 2008, TPIC achieved 45% increase in the number of wells drilled in a year.

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Activities in TürkiyeWithin the scope of activities in Türkiye, TPIC continued its drilling and well completion services for TPAO, BM Construction and Engineering Co., Zorlu Energy and Energy Operations Turkey LLC (EOT).

Iraq ActivitiesTPIC holds the advantage of having access rights to two large logistic and maintenance units of TPAO, located close to the Iraqi border. Also, TPIC aims to benefit from this advantage and participates in tenders for different fields throughout Iraq and intends to increase the service operations in Iraq. Accordingly, TPIC participated in the tender opened by SOC (South Oil Company), the National Petroleum Company of Iraq, for drilling and completion of 45 wells.

Kazakhstan ActivitiesTPIC Aktobe Branch Office founded in 1999, is successfully conducting projects in Kazakhstan. Within the scope of Kazakhstan activities, drilling and well completion services performed for Zhaik Munay Company and Kazakh Oil Aktobe (KOA) Company.

Turkmenistan ActivitiesTPIC has signed a 2+1 year drilling contract in Turkmenistan on March 23, 2007 and added Turkmenistan to its portfolio. The operations in wells with high pressure and 3,500 m depth were initiated in September 2007. TPIC drilled 3 wells and the project was completed in April 2009 with success.

Oil Products TradeBeginning with SOMO in Iraq, with the experience gained through the years, TPIC started carrying out crude oil trade with other countries. TPIC extended its operation region to Iran, Turkmenistan, Syria and Northern Cyprus in addition to Iraq.

TP Petroleum Distribution Inc. (TPpd)TP Petroleum Distribution Inc. was founded on February 16, 2006 as a subsidiary of TPIC and currently its capital is 100 Million TL. TPpd was founded as a Limited Company and due to altering requirements it was converted into a Joint Stock Company on June 16, 2009.

TPpd, with the target to reach market share of 10% in the Turkish Market by 2015, continued its gas stations network development activities in 2009. As well as establishing trustable and principled working relations, TPpd ensured government reliability to its dealers. By the end of 2009, TPpd achieved a number of 98 dealers.

TPpd, obtains the products that it distributes; from TÜPRAŞ Refineries and other distribution companies’ storage facilities (as trading between distributor companies) in Türkiye and from TPIC as imported products. In 2009, 58,000 tons of diesel was imported from Hatay-Dörtyol Facility and sold.

In spite of the global economic crisis that arose in the last quarter of 2008 and continued in 2009, public sales in 2009 were increased by sale campaigns and effects of the crisis were minimized. Dealer sales were increased by 98% in 2009, compared to 2008.

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esSeismic Data AcquisitionSeismic data acquisition has been carried out by Geophysical Operation Department with three Seismic Crews.

Seismic Crew-1 having 5 M26 HD/623 B P type vibrators enabled GPS system is operated by “Vibroseis” method. Seismic Crew-1 has been operating in 3D seismic data acquisitions with Sercel-428 XL type recorder and it has 12 receiver lines, 120 receiver channels, totally 1,440 active recorder channel system. Crew-1 have 2,500 channel capacity.

Seismic Crew-2 is operating with dynamite as an explosive energy source. 13 Heavy-Weight Rigs (Iveco 6x6) Truck Mounted Drills are being used to locate the energy sources. Sercel-408 UL type recorder is being used by Seismic Crew-2. This crew generally operates 2D and 3D Seismic data acquisitions. For 3D acquisitions, the crew can operate up to 12 receiver lines and Crew -2 have 2,500 channel capacity.

Seismic Crew-3 having 5 NOMAD 65 type vibrators enabled GPS system is operated by Vibroseis method. Seismic Crew-3 has been operating in 3D seismic data acquisitions with Sercel-428 XL type recorder and it has 12 receiver lines, 120 receiver channels, totally 1,440 active recorder channel system. Crew -3 have 2,500 channel capacity.

In topographic surveys, Leica GPS1200 system is being used and required data quality control and preplanning studies are carried out by EGHAS software. To increase the production rate, quality control procedures has been applied strongly by seismic crews.

Furthermore, seismic field design, topographic quality control, recorder quality control and static analyses have been applied while performing Seismic Data Acquisition Services.

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Non Seismic Data Acquisition Gravimetric and Magnetic SurveysNon-Seismic Data Acquisition Surveys are carried out by one Gravity and Magnetic Acquisition Crew under Geophysical Operations Department.

Seismic Data Processing Systems 2D/3D, onshore and offshore data processing have been realized by Focus and Geodepth softwares from Pradigm Company. Also, Thrustline softwares by Geotomo Company have been used to solve problems in South Eastern Anatolia Thrust Zone.

Interpretation SystemsFor seismic, well and geological data interpretations, UNIX based software of Landmark and Schlumberger companies have been used actively on the latest technology hardware. Softwares of both companies can be used for advanced seismic interpretation, mapping, well and geological data interpretation.

On the other hand, advanced reservoir modeling and studies related to petrophysics are carried out. Except from Unix-based software, PC-based software has also been used commonly for seismic, well and geological interpretations.

Furthermore, Geographical Information System (GIS) applications have been applied for any kind of mapping. Digitization paper maps to GIS environment are being realized with the highest quality to compose advanced geological mapping applications.

GIS and Remote SensingThrough the goal of carrying out remote sensing studies and producing necessary maps, ESRI products have been used. Also, studies under the EIS (Exploration Information System) Project, which allows the end users to browse or produce their own maps over intranet, has been initiated in 2008. Although EIS Project has been structurally completed in 2005, data entrance is underway.

Additionally; MAPRAYS system put into operation in 2008 that provides more effective licence tracking is in the service of the users.

3D Visualization and Interpretation CenterTPAO has been using 3D seismic interpretation and simulation system since May 2005, in order to minimize the risk factor in hydrocarbon exploration and to carry out integrated and more effective seismic data surveys in the interpretation systems for raising the discovery success ratio in new oil fields.

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Data BankBy installing the necessary hardware and software, the project which enables the management, storage and electronic user access of all digital seismic data, well logs and other relevant data and also the archived documents of Exploration Department, in a single and secure environment, was completed in 2006. The system was brought into service within 2008 and data loading is still in progress.

Well Geology Services

Mud Logging Unit (MLU) SystemsBy MLU systems, which provide services for both our Corporation and joint-venture modern gas and exploration well pursuits, data that belongs to geological and drilling disciplines are registered methodically and provided for the service of relevant project and management authorities.

Real Time Visualization SystemWithin the advanced technology and in accordance with the needs and requirements of our Corporation, Real Time Visualization Project which had been started to be built up in 2007, was put into service, succeeding the test activities completed in the last quarter of 2008.

Research Center Laboratory Services In 2009, technical services, analyses, sample preparation, projects, consulting and training programs were performed on due basis requested by universities, industrial foundations, domestic and foreign oil companies operating in Türkiye and abroad.

On behalf of the private domestic and foreign oil companies, sedimentological, mineralogical - petrographical, paleontological and geochemical analyses were carried out.

Besides, Research Center carried out engineering and consulting field services in Türkiye and abroad. In this respect, drilling fluid services were provided for 19 wells of TPAO, 2 offshore wells of TPAO in Western Black Sea Project, 3 wells drilled by TPOC in Libya and 4 geothermal wells drilled by TPIC under the operator of BM.

Moreover, performance and comparative performance tests were conducted with the cement samples.

Under the manner of the foreign jobs, cement quality tests were conducted with the different types of cement samples requested by Mardin Çimento, Bolu Çimento, AS Çimento and Nuh Çimento. Finally cement additives performance tests were conducted with the samples requested by Cesi Chem and Katn.

Research Center has provided field services and consultancy during the course of water shutoff treatments in 14 wells in Raman field.

Stratigraphy Laboratory ServicesForaminiferal Micropaleontology,• Palinology,• Nannoplankton,• Organic Maturation Laboratory.• 

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Sedimentology and Reservoir Geology Laboratory Services

Lithological Analysis,• Petrographical Analysis,• Sedimentological Core Analysis,• X-Ray Diffraction (XRD) Analysis,• Scanning Electron Microscope (SEM) and • 

Energy Dispersive Micro-Analysis (EDS/XRF),Core Spectral GR Log and Scanner,• Sedimentology• 

a. Facies and Environmental Studies, b. Reservoir Determination and Characterization.

Organic Geochemistry Laboratory ServicesPyrolsis (RE-6) Analyses,• Gas Chromotography,• Gas Chromatography Analyses,• Gas Chromotography Mass Spectrometery • 

Analyses (Biomarker Analyses),Stable Isotope Analyses (EA-GC-C-IRMS).• 

Drilling Technology Laboratory ServicesDrilling and Completion Fluids Analyses,• Cement Slurry Analyses,• Rock Mechanics and Well Stability • 

Analyses,Cement and Cement Additives Quality • 

Control Tests,Drilling Fluid Additives Quality Control • 

Tests,API and High Pressure-High Temperature • 

(HPHT) Filtration Test.

Reservoir Engineering Laboratory ServicesCore Analyses,• Reservoir Fluids (PVT) Analyses,• EOR Studies,• Porosity and Permeability Measurements • 

Under Overburden Pressure.

Production Technology Laboratory ServicesPetroleum and Petroleum Product Tests,• Water Analyses,• Gas Chromatografy Analyses,• Tracing and Controlling of Corrosion,• Well Stimulation Services,• Miscellaneous Analyses.• 

Drilling ServicesThe basic principle of our quality policy is to supply drilling services for TPAO’s and our customers’ exploration and production activities through meeting their increasing requirements and expectations with high quality and relevant cost. While conducting drilling activities with highly experienced staff, our target is to drill the wells in a safe, secure and high quality manner with low cost by applying the latest technology.

TPAO Drilling Department provides drilling, casing deployment, drilling for core plug, well control, air-foam-low pressure drilling services with the rigs having various drilling capacity.

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Onshore DrillingsDrilling Experience in 2,616 Wells,• Deep Well Experience (7,216 m),• Directional and Horizontal Wells,• ERD (Extended Reach Drilling),• Multi Lateral Well Drillings- Batı Raman • 

Field.

For providing better mobilization, cost reduction, time saving and faster drilling, 800 HP MR-7000 mobile rig with the drilling capacity of 2,500 meters and 1,500 HP AC Drive electrical onshore rig with the drilling capacity of 5,000 meters were delivered to TPAO in 2007.

Besides, within the scope of F-320/3 Rig Upgrading Program; main equipments of Mast, Substructures, Electrical Drawworks and Rotary Table were upgraded to 2,000 HP AC Drive Electrical Rig with the drilling capacity of 6,500 meters was produced by National Oilwell Varco (USA). Drilling activity at Yuvaköy-1 well was completed with NOV-2000 Rig during the year.

In 2009, a new 1,500 HP drilling rig (NOV-1500) was purchased and it is expected to be delivered in the middle of 2010.

Offshore DrillingsIn year 2009, Batı Ayazlı-1 and Doğu Akkaya-1 wells were drilled with jack-up for West Black Sea Exploration Project in TPAO-POAŞ-TIWAY-STRATIC joint venture. Water depths for these wells were less than 80m.

Deep Water Drilling TechnologyTPAO is continuing its drilling activities in Western Black Sea within the context of joint exploration and development projects by intensifying its offshore exploration activities.

Within the framework of joint activities with bp, TPAO completed the first deep water drilling in the Eastern Black Sea in 2006 and gained a significant experience in deep water drilling technology. Moreover, by bringing drilling platform “Leiv Eiriksson” to offshore Sinop, in partnership with Petrobras, deep water drilling works have been initiated in Western Black Sea. TPAO continues its studies to determine the offshore hydrocarbon potential of the Black Sea and increasing its efforts to discover new fields for providing added value to the national economy.

Well Completion ServicesWell completion services, comprising workover, Logging and Technical Operations branches, provides services in country and abroad in line with our Corporate’s objectives. Workover, cementing, acidizing, DST, logging and perforating operations have been conducted in oil, natural gas and geothermal wells by following high standards.

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