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TURKISH PETROLEUM CORPORATION - TPAO

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<strong>TURKISH</strong> <strong>PETROLEUM</strong> <strong>CORPORATION</strong><br />

3


As Turkish Petroleum,<br />

embarking on fulfilling all<br />

conditions of protecting<br />

the environment during oil<br />

exploration and production<br />

activities as a company<br />

policy, we discharge the<br />

responsibility of ourselves<br />

and our posterity.


about us<br />

2<br />

who<br />

we are?<br />

what<br />

we do?<br />

Turkish Petroleum,<br />

one of the major<br />

actors of our<br />

economy, founded<br />

in 1954 in order to<br />

conduct hydrocarbon<br />

exploration, drilling,<br />

production, refinery<br />

and marketing<br />

activities on behalf of<br />

the public. We realized<br />

many innovations in oil<br />

sector in our 58 years<br />

history and brought 17<br />

major foundations like<br />

PETKİM, TÜPRAŞ<br />

and PETROL OFİSİ<br />

in our country and<br />

today still conducting<br />

our activities in many<br />

important projects and<br />

consortiums nationally<br />

and internationally.<br />

Exploration, Drilling, Production<br />

Natural Gas Storage<br />

Pipeline Projects<br />

Oil Products Trade and Distribution<br />

where<br />

we operate?<br />

<strong>TPAO</strong>, having approximately 5,000 employees,<br />

was structured in Ankara with its headquarters and<br />

also District Managements in Batman, Thrace and<br />

Adıyaman in which oil and natural gas exploration<br />

activities intensively carried out. To ensure energy<br />

supply security of the country, we conduct our<br />

international activities especially in Caspian Region,<br />

North Africa and Middle East. In this context, we<br />

carry out our exploration and production activities<br />

actively in Azerbaijan, Kazakhstan, Libya, Iraq, TRNC<br />

and Colombia (TPIC). We have been continuing to<br />

search and negotiate for business opportunities in<br />

other hydrocarbon rich regions such as Russia, South<br />

America and Middle East.


our vision<br />

3<br />

To become a regionally effective world-class energy<br />

company meeting Turkey’s oil and natural gas demand<br />

and to be the most desired company to work with.<br />

our mission<br />

To bring out oil and natural gas potential of Turkey and<br />

provide them for the use of Turkish economy, to supply<br />

new sources of income via international activities and<br />

play an effective role in the energy sector, by also<br />

actively participating in Turkey’s process of being an<br />

Energy Corridor.


headlines from 2011<br />

4<br />

7 oil field and 6 natural gas field discoveries were realized in 2011<br />

by <strong>TPAO</strong>.<br />

Joint venture agreements were signed with Shell for<br />

Mediterranean offshore and Southeast onshore.<br />

Joint exploration & production agreement was signed<br />

with TRNC in 8 licenses composed of 7 offshore and 1 onshore<br />

licenses.<br />

The 7 th NOC is going to be held in May 2012 in İstanbul.


Our domestic investments approximately reached to 500 million USD in 2011,<br />

while it was 40 million USD in the early 2000s.<br />

5<br />

Within the scope of MOU signed between Turkey and Azerbaijan on<br />

December 2011, <strong>TPAO</strong> is involved in Trans Anatolia Natural<br />

Gas Pipeline Project.<br />

A seismic research ship is planned to be purchased in 2012.<br />

<strong>TPAO</strong> is involved in 4 important projects covering 2 oil fields and<br />

2 natural gas fields in Iraq. We are the operator in Mansuriya<br />

Gas Field.


note from the president<br />

6<br />

Companies operating in oil sector are faced<br />

with complicated and rapidly changing<br />

situations following the social change<br />

occurred in the Middle East and North<br />

Africa in 2011.<br />

As Turkish Petroleum, we continue to<br />

organize new partnerships, activities<br />

and projects aiming long-term growth in<br />

accordance with the vision and mission of<br />

meeting the increasing energy demand of<br />

our country.<br />

In this context, signing oil services and<br />

production share agreement with TRNC<br />

covering 7 offshore and 1 onshore fields,<br />

we continue on our way as leading player<br />

of East Mediterranean Region. We also<br />

signed joint operating agreements with Shell<br />

in order to conduct both unconventional<br />

studies in Southeastern Region of our<br />

country and exploration and production<br />

activities in Mediterranean. We participated<br />

in Trans Anatolia Pipeline Project (TANAP)<br />

that will enable to transport Azeri gas to<br />

Europe through Turkey.<br />

of them are<br />

deepwater


As a summary of 2011, we can clearly<br />

state that; we managed to progress in our<br />

exploration and production projects and<br />

maintain our determination of meeting the<br />

energy demand of our country.<br />

7<br />

We, as the personnel of a pioneer<br />

foundation in energy sector, are sensitive<br />

to conduct our activities within the frame<br />

of environmental adaptability and social<br />

awareness concepts.<br />

For this reason, as Turkish Petroleum<br />

family, I feel great pleasure to dedicate<br />

the traditional “<strong>TPAO</strong> Activities 2011” to<br />

people sensitive to the environment and to<br />

posterity.<br />

Mehmet UYSAL<br />

<strong>TPAO</strong> President and CEO


Our aim is to add a meaning<br />

to our economic effort and<br />

investments by protecting<br />

the ecosystem which is the<br />

basis of human life.


domestic exploration and<br />

production activities<br />

Turkish Petroleum, in parallel to its main<br />

purpose and targets, conducts its studies<br />

with the principle of preventing and/or<br />

minimizing the negative environmental<br />

effects during exploration, drilling,<br />

production activities and with the principle<br />

of maintaining a planned and environmental<br />

friendly teamwork in order to protect the<br />

human and environment health and natural<br />

balance in an innovative, functional and<br />

scientific manner.<br />

Turkish Petroleum also views and adopts<br />

itself with the integration process of<br />

international oil companies and carries<br />

out its studies for the establishment<br />

of a competitive, secure, transparent<br />

and balanced market conditions for all<br />

oil companies engaging in oil and gas<br />

exploration business in Turkey’s oil market.<br />

In this respect, Turkish Petroleum has<br />

made a boom in its domestic investments<br />

by extending its activities in all unexplored<br />

basins of Turkey and especially the Black<br />

Sea and the Mediterranean.<br />

The first natural gas discoveries in the<br />

Western Black Sea region in 2004 along<br />

with seismic surveys throughout the entire


Black Sea floor have attracted the attention<br />

of many oil companies. Hence; prominent<br />

companies such as BP, Petrobras,<br />

ExxonMobil and Chevron have joined<br />

Turkish Petroleum in various exploration<br />

projects including Hopa-1, Sinop-1,<br />

Yassıhöyük-1 and Kastamonu-1.<br />

In addition, we undertook some ultra deep<br />

water drilling operations in Sürmene-1 well.<br />

Conducting drillings of Yassıhöyük-1 and<br />

Sürmene-1 wells, we have become one<br />

of the 12 major global oil companies in<br />

managing ultra deep water drillings.<br />

Our near future goal is to explore the whole<br />

hydrocarbon potential of the Black Sea and<br />

to bring it into the economy.<br />

Meanwhile, activities for revealing<br />

hydrocarbon potential of the Mediterranean<br />

commenced through the execution of<br />

“Petroleum Services and Production<br />

Sharing Contract” for onshore and offshore<br />

licenses on November 2, 2011 between<br />

Turkish Petroleum and Ministry of Economy<br />

and Energy of Turkish Republic of Northern<br />

Cyprus (TRNC) .<br />

Also, we announced a new farm-out process<br />

for Antalya offshore licenses in 2010 to<br />

provide new opportunities for establishing<br />

joint ventures with foreign oil companies.<br />

In this period, interested companies<br />

involved in joint evaluation of and discussion<br />

on the technical data. Following our internal<br />

analysis of the proposals submitted by the<br />

interested companies, we started productive<br />

negotiations with Shell in July 2011.<br />

Turkish Petroleum and Shell accomplished<br />

the execution of a Farm-in and Joint<br />

Operating Agreement covering Antalya<br />

offshore licenses on November 23, 2011.<br />

On the other hand, to accelerate its studies<br />

on unconventional resources, Turkish<br />

Petroleum again initiated negotiations<br />

with Shell to be able to apply the latest<br />

technologies for exploration, development<br />

and production of such unconventional<br />

resources existing in the Southeastern<br />

Anatolian Region.<br />

Turkish Petroleum and Shell managed to<br />

establish a main Agreement and finally<br />

signed a Farm-in and Joint Operating<br />

Agreement on November 23, 2011,<br />

reflecting their specific purposes for<br />

unconventional resources.<br />

Also, in the last quarter of 2011, we have<br />

completed preparations for the new farmout<br />

opportunity covering İskenderun and<br />

Mersin offshore licenses.<br />

The farm-out process was announced<br />

in December 2011 by inviting major oil<br />

companies to a visit for evaluating the<br />

related data and we intended to initiate<br />

negotiations with the target of conducting<br />

exploration activities with those foreign<br />

companies interested in the designated<br />

fields.<br />

11


198.9<br />

12<br />

Turkish Petroleum continued its drilling<br />

activities intensively in 2011. Our<br />

commitment is to carry on our drilling<br />

activities without any cease both inside and<br />

outside of Turkey.<br />

Turkish Petroleum is conducting most of its<br />

drilling activities mainly in the Southeastern<br />

Anatolia, Thrace, and Black Sea regions of<br />

Turkey.<br />

Operation program for 2011 had scheduled<br />

a total of 263,000 meters and 113 wells to<br />

drill. 198,875 meters and 115 wells were<br />

drilled by the end of 2011. 103 wells were<br />

completed and 12 wells will be completed<br />

by 2012. 54 wells had oil and 9 wells had<br />

gas.<br />

As a result of these drilling activities, we<br />

discovered 7 oil and 6 natural gas fields.<br />

Joint Domestic Exploration,<br />

Development and Production Activities<br />

We conducted our activities with Tiway<br />

Oil (Southeastern Region), NVT Perenco<br />

(Southeastern Region), Amity Oil<br />

(Northwestern Region), Transatlantic<br />

(Thrace Basin and Southeast Anatolian<br />

Region), Shell, Petrol Ofisi, Foinavon,<br />

Petrobras, Exxonmobil, Chevron Karadeniz<br />

B.V.<br />

The double-deck Akçakoca Platform<br />

operates in the Western Black Sea with its<br />

daily production capacity of 2.1 million m³<br />

gas. While the daily production of nearly<br />

500,000 m³ natural gas is supplied on the<br />

production deck, drilling on new production<br />

wells and other development-related<br />

activities are handled on the drilling deck.<br />

With its cumulative production figure of 730<br />

million m³ natural gas, the Çayağzı Natural<br />

Gas Facilities process natural gas produced<br />

2011<br />

2010<br />

2009<br />

2008<br />

2011<br />

2010<br />

2009<br />

2008<br />

122.3<br />

Drilling activities<br />

(thousand meters)<br />

158.2<br />

Domestic HC production<br />

(million barrels)<br />

13.2<br />

14.0 14.2<br />

14.0<br />

181.0


in Akçakoca fields as well as Ayazlı and<br />

Akkaya fields in the Western Black Sea.<br />

In 2011, Turkish Petroleum produced 12.1<br />

million barrels of crude oil from its fields,<br />

which constituted 74% of the total crude<br />

oil production of Turkey. 70% of the total<br />

oil production is from Batman Region, 29%<br />

is from Adıyaman Region and 1% is from<br />

Thrace Region.<br />

13<br />

In 2011, our natural gas production was<br />

317.7 million sm³. The gas produced<br />

in Thrace Region was sold to 15 local<br />

industrial customers; the gas produced from<br />

Çamurlu field in Batman Region was sold to<br />

four companies in the region. In Adıyaman<br />

Region, gas released from produced oil<br />

was sold to a company.<br />

Enhanced Oil Recovery Projects<br />

• Batı Raman Field Enhanced Oil<br />

Recovery Project.<br />

• Raman Field Production<br />

Enhancement Project.<br />

• Garzan Field Water Injection Project.<br />

• Batı Kozluca Field Water Alternating<br />

Gas (WAG) Injection Project.<br />

Kuzey Marmara and Değirmenköy<br />

Fields Underground Natural Gas<br />

Storage Facilities<br />

Commercial activity in Kuzey Marmara<br />

and Değirmenköy fields underground<br />

natural gas storage facilities was started<br />

on April 13, 2007. The first storage period<br />

was completed successfully and injection,<br />

withdrawal operations continue in the fourth<br />

storage period.<br />

Gas demand of our country tends to<br />

increase, therefore new storage facilities<br />

are urgently needed. Ministry of Energy and<br />

Natural Recourses and BOTAŞ demanded<br />

Turkish Petroleum to increase the natural<br />

gas storage and withdrawal capacity rapidly.<br />

Therefore, Turkish Petroleum anticipates<br />

increasing the daily withdrawal capacities<br />

of current facilities up to 50 million sm³<br />

within 3 phases by the end of 2016 and<br />

necessary works for Phase-I and Phase-II<br />

have already been started in 2008.


international exploration and<br />

production activities<br />

Turkish Petroleum focused its exploration<br />

and production activities in its region since<br />

the early 1990’s.<br />

Because of the necessity of adding new<br />

reserves and turning them into production<br />

immediately to achieve its strategic targets,<br />

international activities have become<br />

gradually more important. Being aware<br />

of the strategic importance of energy,<br />

for ensuring Turkey’s security of supply,<br />

Turkish Petroleum has set up the roadmaps<br />

and action plans for achieving its objectives<br />

in the years ahead.<br />

Turkish Petroleum is in the North East<br />

Coast of Caspian;<br />

Kazakhstan<br />

We conduct our activities in Kazakhstan<br />

through a joint venture company,<br />

KazakhTurkMunai (KTM) Ltd. in which<br />

Turkish Petroleum holds a 49% share and<br />

KazMunaiGas has 51%. KTM Ltd. has<br />

one concession license in Aktau Region<br />

and two in Aktobe Region of the Western<br />

Kazakhstan. Exploration and production<br />

activities are ongoing with a total of 26 wells<br />

located in 7 fields in these three licenses.


By the end of 2011, yearly crude oil<br />

production is 1.73 million barrels (our share<br />

is 917 thousand barrels), cumulative crude<br />

oil production is 26.80 million barrels (our<br />

share is 16.70 million barrels) and crude<br />

oil reserves are 28.97 million barrels (our<br />

share is 14.78 million barrels).<br />

Turkish Petroleum is in the West<br />

Caspian Sea;<br />

Azerbaijan Exploration, Production<br />

and Transportation Projects<br />

Turkish Petroleum is currently a participant<br />

of three exploration, development and<br />

production projects which are Azeri-Chirag-<br />

Guneshli (6.75%), Shah Deniz (9%) and<br />

Alov (10%) Projects in Azerbaijan.<br />

Furthermore, we have a share of 6.53%<br />

in the BTC Co. which is carrying out all<br />

activities of Baku-Tbilisi-Ceyhan Main<br />

Export Crude Oil Pipeline Project and 9%<br />

share in South Caucasus Natural Gas<br />

Pipeline Project which transports Shah<br />

Deniz gas to Turkish-Georgian border.<br />

Azeri-Chirag-Guneshli (ACG) Project<br />

In 1994, the Joint Development and<br />

Production Sharing Agreement for ACG<br />

Project was signed in Baku among the State<br />

Oil Company of the Azerbaijan Republic<br />

(SOCAR) and the consortium constituted<br />

by the foreign companies.<br />

Throughout the ACG Project having 5.6<br />

billion barrels of oil reserves, and producing<br />

2.0 billion barrels of crude oil up to now<br />

(our share; 83.3 million barrels), crude oil<br />

production is foreseen to reach 713,000<br />

barrels/day in 2012. In 2011, with an<br />

average of 717,600 barrels/day, 262.0<br />

million barrels of oil (our share; 5.6 million<br />

barrels) was produced.<br />

Shah Deniz Project<br />

The Shah Deniz structure is located in<br />

the offshore South Caspian Sea, 70 km<br />

southeast of Baku and 70 km southwest<br />

of the Azeri-Chirag-Guneshli field. The<br />

concession has an areal coverage of<br />

approximately 860 km².<br />

With the Shah Deniz Phase-1 Field<br />

Development and Construction Decision,<br />

construction period started in 2003 and<br />

commercial production started on March<br />

7, 2007 and is currently continuing with 4<br />

wells.<br />

In 2011, 6.7 billion m³ of natural gas (our<br />

share; 467 million m³) and 13.9 million<br />

barrels of condensate (our share 0.97<br />

million barrels) were produced and by<br />

the end of 2011, cumulative production<br />

reached to 30.4 billion m³ natural gas and<br />

63.8 million barrels of condensate.<br />

Within the scope of Phase-2, it is estimated<br />

that construction decision will be taken in<br />

the mid 2013 and the first gas delivery will<br />

be realized in the last quarter of 2017.<br />

15


16<br />

Alov Project<br />

Alov Exploration Project covers the Araz-<br />

Alov-Sharg prospective structures in the<br />

Middle of the Southern Caspian Sea.<br />

Drilling of the first exploration well is waiting<br />

for the determination of legal status of<br />

Caspian Sea.<br />

Pipeline Projects of Turkish Petroleum<br />

Contributing to the Energy Corridor<br />

Baku-Tbilisi-Ceyhan Main Export<br />

Crude Oil Pipeline (BTC) Project<br />

The transportation of oil produced in<br />

Caspian Region, especially from ACG and<br />

Shah Deniz Projects in Azerbaijan to the<br />

world markets, in a safe, secure, reliable and<br />

environmentally friendly way, is continuing<br />

through the BTC Project which is the first<br />

step of East-West Energy Corridor.<br />

Transportation of a large portion of ACG<br />

oil, all of Shah Deniz condensate and<br />

some Turkmen oil, has continued and from<br />

Haydar Aliyev Terminal 258 million barrels<br />

of oil was loaded to 355 tankers in 2011.<br />

Cumulatively, 1.34 billion barrels of Azeri<br />

and Kazakh Oil have been transported<br />

through BTC Pipeline to the world markets<br />

with 1,742 tankers by the end of 2011.<br />

South Caucasus Natural Gas Pipeline<br />

(SCP) Project<br />

Within the scope of SCP Project, Shah<br />

Deniz natural gas is being transported to<br />

Georgian-Turkish border. The SCP passing<br />

through the same corridor with BTC is about<br />

690 km in length.<br />

The pipeline has a transportation capacity<br />

of 8.10 billion m³ of natural gas to Turkish<br />

border with one compressor station in<br />

Sangachal Terminal in line with the terms<br />

of AGSC-BOTAŞ Sales and Purchasing<br />

Agreement (SPA).<br />

However, it is possible to expand this<br />

capacity up to 22 billion m³ in a year by<br />

adding new compressor stations and/or<br />

looping.<br />

In 2011, totally 6.65 billion m³ of natural<br />

gas was transported and 3.67 billion m³ of<br />

this amount was sold to BOTAŞ. The main<br />

target of the project is to transport the gas<br />

that will be produced from the Caspian<br />

Region to Europe via Turkey in the future.<br />

Libya<br />

Turkish Petroleum has been continuing its<br />

activities by its subsidiary Turkish Petroleum<br />

Overseas Company (TPOC) since 2000.<br />

TPOC, a fully owned affiliate of Turkish<br />

Petroleum, is conducting exploration and<br />

appraisal work as operator in the Area<br />

147/3&4, Murzuq Basin, Libya.


In 2011, C2A-147/3 was drilled and the well<br />

was released on February 2011. The other<br />

planned drilling and operations could not be<br />

performed and suspended temporarily due<br />

to the events started in February 2011 in<br />

Libya.<br />

The TPOC Branch Office was kept open<br />

during the events in Libya and full working of<br />

the office started November 2011. In 2012,<br />

new exploration and appraisal wells will be<br />

drilled depending on the results of the 2D<br />

and 3D seismic surveys, data acquisition<br />

and interpretation studies. Additionally,<br />

completion works and well tests will be<br />

realized in the discovery wells.<br />

Iraq<br />

Since 1994, Turkish Petroleum has been<br />

working closely with the Iraqi Ministry<br />

of Oil for exploration, development and<br />

production opportunities in Iraq.<br />

Turkish Petroleum was awarded for Badra<br />

and Missan development fields in first<br />

and second Petroleum Licensing Rounds<br />

organized by the Iraqi petroleum authority<br />

PCLD (Petroleum Contracts and Licensing<br />

Directorate) in 2009.<br />

Turkish Petroleum has offered three bids for<br />

the Iraq’s third Petroleum Licensing round<br />

and has been awarded 20 year term gas<br />

development contracts for Siba as a partner<br />

and Mansuriya gas field as an operator in<br />

Iraq’s third bidding round in 2010.<br />

Kuwait Energy will be the operator of Siba<br />

field, participating with a 60% contractor<br />

share and Turkish Petroleum participating<br />

with 40%. We will be the operator of<br />

Mansuriya field, participating with a 50%<br />

contractor share, Kuwait Energy 30% and<br />

KOGAS 20%. The development activities<br />

will be commenced on July 18, 2011 with<br />

the official effective date.<br />

New Ventures<br />

Within the scope of business development<br />

projects, new activities are going to be<br />

conducted especially in South America,<br />

Russia, Middle East regions in addition to<br />

the current investments.<br />

The physical and cash budget planned for<br />

the new ventures is 20 million USD.


tpic, a turkish petroleum<br />

subsidiary<br />

TPIC was established in 1988 in Channel<br />

Islands, Jersey, United Kingdom to operate<br />

in all branches of oil industry comprising<br />

exploration, drilling, field development,<br />

production, transportation, refining, crude<br />

oil and oil products trade and marketing.<br />

Exploration and Production Activities<br />

TPIC focuses its exploration and production<br />

activities in Colombia and Turkey, while<br />

it continues its business development<br />

activities in Middle East, Central Asia and<br />

Latin America.<br />

In Turkey; TPIC has 37 exploration<br />

licenses. Drilling activities in 5 wells were<br />

conducted in 2011 and 4 of these wells’<br />

drillings were completed.<br />

In Colombia; since 2008 TPIC, with its<br />

partner Ecopetrol, has been conducting its<br />

activities in the project with 50% share as<br />

operator.<br />

Since 2008, TPIC has conducted joint<br />

exploration activities with its partner<br />

Ecopetrol; National Oil Company of<br />

Colombia, in Gonzalez Block in Catatumbo<br />

Basin. TPIC serves as the Operator of


the block where each partner has 50%<br />

participating interest in the project. The first<br />

exploration well, Rio Zulia West-3 (RZW-<br />

3) was completed with oil discovery. The<br />

second exploration well, Rio Zulia West-<br />

4 (RZW-4) was completed in June 2011<br />

with oil shows. In October 2011, Ecopetrol<br />

decided to assign its shares to TPIC. The<br />

process is still in progress.<br />

TPIC holds 51% of the shares as well as<br />

serving as the operator whereas Genel<br />

Enerji holds 40% and Multiservicios RJT<br />

LTDA holds 9% of the shares. An exploration<br />

well is planned to be spudded in the last<br />

quarter of 2012.<br />

Oil Field Services<br />

In 2011, TPIC enhanced oil field and<br />

geothermal services by increasing the<br />

number of crews both in Turkey and abroad.<br />

TPIC drilled over 150,000 m in depth in 86<br />

wells (5 wells abroad) and completed 439<br />

wells (34 wells abroad) so far.<br />

In Turkey, TPIC continues its drilling<br />

and well completion services for Turkish<br />

Petroleum, Soyak/Mis Enerji, Sanko/Santral<br />

Enerji, Aytemiz Elektrik, BM İnşaat, Akça/<br />

Menderes Enerji, Güriş/Gürmat Elektrik,<br />

Zorlu Enerji and Kayen Enerji.<br />

In Iraq, TPIC participated in the tender<br />

opened by SOC (South Oil Company) for<br />

drilling and completion of 45 wells and was<br />

awarded the project in 2010. The drilling<br />

operations of 5 wells started in January<br />

2011 and completed in 2011 by TPIC.<br />

In Kazakhstan, TPIC Aktobe Branch Office,<br />

founded in 1999, successfully conducted<br />

projects. Within the scope of Kazakhstan<br />

activities, drilling services have been<br />

provided for KazakhTurkMunai (KTM)<br />

Company since 2008. The project was<br />

completed in 2011 with the completion of<br />

the 5 th well in March 2011.<br />

Oil Products Trade<br />

Since 1999, TPIC has continued to increase<br />

the volume of its oil and oil products trade with<br />

its strong logistics system and operational<br />

capability. TPIC continues carrying out oil<br />

products trade in abroad, and extended its<br />

operations to Iran, Turkmenistan, Syria,<br />

Libya, Northern Cyprus and Mediterranean<br />

in addition to Iraq. TPIC handled more than<br />

10 million tons of oil and products in the<br />

mentioned markets.<br />

TP Petroleum Distribution Inc.<br />

TP Petroleum Distribution Inc. (TP) was<br />

founded in February 2006 as a subsidiary<br />

of TPIC. TP, with the target of reaching<br />

a 10% share in the Turkish Market by<br />

2020, continued its gas stations network<br />

development activities in 2011. As well<br />

as establishing trustable and principled<br />

working relations, TP ensured government<br />

reliability to its dealers.<br />

By the end of 2011, TP achieved a number<br />

of 132 dealers. It has protected its position<br />

in EMRA reports as 8 th biggest distributor.<br />

19


services & technologies<br />

Seismic data acquisition has been carried<br />

out by Geophysical Operations Department<br />

with three Seismic Crews. Two of them<br />

have vibrators while the other operates with<br />

dynamite.<br />

All Crews have 12 receiver lines, 120<br />

receiver channels per line, totally 1,440<br />

active channels and 2,500 channel capacity.<br />

In topographic surveys, Leica GPS1200<br />

system is being used in all Seismic Crews.<br />

Non Seismic Data Acquisition<br />

Gravimetric and Magnetic Surveys<br />

Non-Seismic Data Acquisition Surveys are<br />

carried out by one Gravity and Magnetic<br />

Acquisition Crew under Geophysical<br />

Operations Department.<br />

Seismic Data Processing Systems<br />

2D/3D, onshore and offshore data<br />

processing have been realized by Focus<br />

and Geodepth softwares of Pradigm<br />

Company. Also, Thrustline softwares of<br />

Geotomo Company have been used to<br />

solve problems in Southeastern Anatolia<br />

Thrust Zone.


Interpretation Systems<br />

For geophysical and geological data<br />

interpretations, Landmark, Geoframe and<br />

Petrel softwares have been used actively<br />

on the latest hardware technology. A safe<br />

data storage cabinet was purchased in<br />

order to store Petrobank Disaster Recovery<br />

Manager System data tapes in other<br />

location.<br />

Landmark Software has been upgraded<br />

to R5000 from R2003. Petrel Software, as<br />

the pilot database project which is the first<br />

in EU, had been launched in the middle of<br />

June 2011.<br />

GIS<br />

With the aim of carrying out GIS data<br />

production, management, storage, query<br />

and analysis and producing necessary<br />

maps for exploration activities, ESRI<br />

software products have been used.<br />

Furthermore, spatial database<br />

reconstruction project including all spatial<br />

and non-spatial GIS data related to<br />

petroleum sector and Digital geologic map<br />

production project by using GIS tools and<br />

analysis have continued in data production<br />

and management tasks in GIS department.<br />

Datum conversions of spatial data between<br />

ED50 and WGS84 have been carried out<br />

for users in exploration units. Also, studies<br />

under the EIS Project, which allows the end<br />

users to browse or produce their own maps<br />

over intranet, have been initiated in 2008.<br />

3D Visualization Center<br />

Turkish Petroleum has been using 3D<br />

seismic interpretation and simulation system<br />

since May 2005, in order to minimize the<br />

risk factor in hydrocarbon exploration and<br />

to carry out integrated and more effective<br />

seismic data surveys in the interpretation<br />

systems for raising the discovery success<br />

ratio in new oil fields.<br />

Databank<br />

By installing the necessary hardware and<br />

software, the project which enables the<br />

management, storage and electronic user<br />

access of all digital seismic data, well logs<br />

and other relevant data and also the archived<br />

documents of Exploration Department,<br />

in a single and secure environment, was<br />

completed in 2006. The system was brought<br />

into service within 2008 and data loading is<br />

still in progress. Until now 40,702 seismic<br />

lines (7,796 2D lines, 32,906 3D lines) and<br />

1,724 wells loaded.<br />

Remote Sensing<br />

With the aim of carrying out remote<br />

sensing studies and producing necessary<br />

maps, ESRI products have been used.<br />

Also, studies under the EIS (Exploration<br />

Information System) Project, which allows<br />

the end users to browse or produce their<br />

own maps over intranet, have been initiated<br />

in 2008. Data entrance is ongoing.<br />

21


22<br />

Well Geology Services Mud Logging<br />

Unit (MLU) Systems<br />

By MLU systems, which provide services<br />

for both our Corporation and joint-ventures’<br />

gas and exploration well pursuits, data<br />

that belongs to geological and drilling<br />

disciplines are registered methodically and<br />

provided for the service of relevant project<br />

and management authorities.<br />

Real Time Visualization System<br />

Within the advanced technology and in<br />

accordance with the requirements of our<br />

Corporation, Real Time Visualization<br />

Project which was started to be built up in<br />

2007, was put into service, succeeding the<br />

test activities in the last quarter of 2008.<br />

Research Center Laboratory Services<br />

In 2011, technical services, analyses,<br />

projects, consulting and training programs<br />

were performed on due basis requested by<br />

mainly our exploration, drilling, workover<br />

and production groups and also universities,<br />

industrial foundations, domestic and foreign<br />

oil companies operating in Turkey and<br />

abroad.<br />

On demands of the private domestic and<br />

foreign oil companies, sedimentological,<br />

mineralogical and petrographical,<br />

paleontological and geochemical analyses<br />

were carried out over 50 wells.<br />

Besides, Research Center carried out<br />

engineering and consultancy field services<br />

in Turkey and abroad. In this respect,<br />

drilling fluid services were provided for<br />

43 wells of Turkish Petroleum, 5 offshore<br />

wells of Turkish Petroleum in Black Sea<br />

Project, 1 well drilled by TPOC in Libya and<br />

3 wells drilled by TPIC in Iraq. Moreover,<br />

performance and comparative performance<br />

tests were conducted with the cement<br />

samples.<br />

Research Center has provided field services<br />

and consultancy during the field application<br />

of totally 18 wells of water shutoff treatments<br />

in Raman oil field.<br />

Accreditation of Research Center<br />

Laboratories was renewed by Turkish<br />

Accreditation Agency Board on January<br />

24, 2011 for a total of 34 analyses. During<br />

2011, necessary tasks were performed<br />

related to IWCF Membership and for being<br />

an Accredited Assessment Center.<br />

Drilling Department provides drilling,<br />

casing deployment, drilling for core plug,<br />

well control, air-foam-low pressure drilling<br />

services with the rigs having various drilling<br />

capacity.<br />

Modernization of Drilling Rigs<br />

Due to the developments in drilling<br />

technology, we are working to improve<br />

performance at our offshore and onshore<br />

drilling activities.<br />

Some equipment that deteriorated through<br />

use over time requires being modernized.<br />

Therefore we have purchased 1 Iron


Roughneck. For casings, we made an order<br />

of 3 units Computerized Torque Control<br />

System. We also have ordered 2 Electrical<br />

Top Drive, 2 units of Mud Pumps and 1 mud<br />

tank system.<br />

23<br />

Production Field Development<br />

Technology<br />

All oil and natural gas fields are monitored<br />

actively by multidisciplinary teams using<br />

special software which has been regularly<br />

updated digital database and by broad<br />

communication network system created<br />

among center and fields.<br />

By means of reservoir and well analysis<br />

software, production performance of both<br />

field and well can be observed historically.<br />

Well cross sections, digital logs, well<br />

completion operations and well performance<br />

can be monitored simultaneously.<br />

Well Completion Services<br />

Well completion services, comprising<br />

workover, logging and technical operations<br />

branches, provides services in Turkey<br />

and abroad in line with our Corporate’s<br />

objectives. Workover, cementing, acidizing,<br />

DST, logging and perforating operations<br />

have been conducted in oil, natural gas<br />

and geothermal wells by following high<br />

standards.<br />

In parallel to the emergency response plan<br />

prepared especially for the projects and<br />

activities to be conducted, employees are<br />

being taught with drills about occupational<br />

safety and environment protection before<br />

the activities.<br />

Wastes originated from the operations are<br />

made to become harmless with source<br />

reduction, reuse techniques, recovery,<br />

purification techniques and direct dispose<br />

methods. Production waste water is<br />

discharged to receiving environment by<br />

injection to underground or purification<br />

techniques.<br />

In order to develop environmental studies<br />

in hydrocarbon exploration and production<br />

activities, we developed feasible projects<br />

with universities and private organizations<br />

and participated TÜBİTAK projects.


24<br />

headquarters<br />

Turkish Petroleum Corporation<br />

Söğütözü, 2180 th Avenue No: 86,<br />

06100 Çankaya - Ankara / TURKEY<br />

Phone: +90 312 207 20 00<br />

Fax: +90 312 286 90 00 - 286 90 01<br />

e-mail: tpaocc@petrol.tpao.gov.tr<br />

web: www.tpao.gov.tr<br />

tpao’s district<br />

managements<br />

Adıyaman District Management<br />

02040 Adıyaman / TURKEY<br />

Phone: +90 416 227 28 11<br />

Fax: +90 416 227 28 07 - 18<br />

Batman District Management<br />

72100 Batman / TURKEY<br />

Phone: +90 488 213 27 10<br />

Fax: +90 488 213 41 49 - 213 39 14<br />

Trakya District Management<br />

39750 Lüleburgaz<br />

Kırklareli / TURKEY<br />

Phone: +90 288 417 38 90<br />

Fax: +90 288 417 22 03<br />

tpao’s subsidiary<br />

TPIC, Turkish Petroleum International<br />

Company<br />

Söğütözü Avenue, No: 27, 06520<br />

Söğütözü - Ankara / TURKEY<br />

Phone: +90 312 285 44 55<br />

Fax: +90 312 285 38 09<br />

e-mail: tpican@tpic.com.tr<br />

tpao’s international offices<br />

Azerbaijan <strong>TPAO</strong> / TPIC / TPBTC Office<br />

340 Nizami Street, 370000 ISR Plaza, 4 th<br />

Floor<br />

Baku / AZERBAIJAN<br />

Phone: +99 412 498 95 26 - 493 14 98<br />

Fax: +99 412 498 14 35<br />

e-mail: info@tpao-az.com<br />

TPOC Libya Office<br />

Al Fatah Tower 1, 9 th Floor, No: 91<br />

Tripoli / LIBYA<br />

Phone: +218 21 335 14 94 - 335 14 96 - 97<br />

Fax: +218 21 335 14 95<br />

e-mail: tpoc@tpoclibya.com<br />

TPOC Iraq Office<br />

Baghdad Al – Wazereyah 301 Section 5 th<br />

St. No: 6 Baghdad / IRAQ<br />

Phone: +90 312 207 20 00 / 18 58 - 18 59<br />

e-mail: kyunus@tpao.gov.tr<br />

KazakTurkMunai Ltd. Joint Company<br />

Business Center “Okan Inter-Continental”,<br />

Abay Avenue, 113, 473000,<br />

Astana / KAZAKHSTAN<br />

Phone: +7 7172 39 10 25<br />

Fax: +7 7172 39 10 26<br />

e-mail: ktm@aktm.kz

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