SOCAR Trading
Corporate Presentation
2021
Strictly confidential and not for public useCOMPANY UPDATE
2021
? SOCAR Group
? SOCAR Trading - Corporate
? SOCAR Trading - Liquefied Natural Gas Activities
? SOCAR Trading - Liquefied Natural Gas Projects
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Strictly confidential and not for public useSTATE OIL COMPANY OF AZERBAIJAN REPUBLIC
About Azerbaijan
Independent republic
? 4000 years of history and culture
? 1991 independence from Soviet Union
? 10 million population with capital Baku
World’s oldest oil producing country
? 1846 first industrial well
? 1900 around 50% of world supply
? 1992 establishment of SOCAR
Russia
Long term governance of economic growth
? 1999 “Norwegian-style” oil fund SOFAZ with $42 billion in assets as of 30.09.2019
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? 2009 top regulatory reformer WB Doing Business ranking
? 2010 best improvement ever WEF Competitiveness ranking
? 2016 consistent, uninterrupted improvements in streamlining business environment
WB Doing Business
? WB Doing Business 2019 – Azerbaijan in the list of economies with the most
Azerbaijan
notable improvement
Baku
Strong values
SOCAR headquarters
? Respect for local culture and diversity
? Political independence
Turkey
? Commercial attitude
Source: SOCAR Trading
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Strictly confidential and not for public usePRESENT ACROSS THE VALUE CHAIN
SOCAR - key assets and activities
Exploration & Refining &
Main pipelines & exports Logistics & wholesale Retail & Distribution
Production petrochemicals
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? NREP, WREP
? Onshore oilfields ? Baku ‘Heydar Aliyev’ ? Kulevi terminal ? Azerbaijan
Refinery
? BTC
? Offshore oilfields, oil ? SOCAR Georgia ? Austria
rocks, Bulla-Deniz, etc ? Azerikimiya
? Caspian tanker fleet
? SOCAR Trading ? Georgia
? ACG ? Petkim Petrochemical
? SCP ? SOCAR Turkey Energy ? Romania
complex (Turkey)
? Shah-Deniz gas fields
? Kazi-Magomed-Mozdok ? Switzerland
? STAR Refinery (Turkey)
gas pipeline
? Absheron
? Turkey
? Gas Processing Plant
? TANAP, TAP
? Umid
? Ukraine
? SOCAR Carbamide
? SOCAR Polymer
Source : SOCAR, SOCAR Trading
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Strictly confidential and not for public useCOMPANY UPDATE
2021
? SOCAR Group
? SOCAR Trading - Corporate
? SOCAR Trading - Liquefied Natural Gas Activities
? SOCAR Trading - Liquefied Natural Gas Projects
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Strictly confidential and not for public useESTABLISHED OIL AND GAS TRADING HOUSE
SOCAR Trading Overview
Company History
? Established in 2007, SOCAR Trading is mandated to
Max
market Azerbaijan’s Azeri Light crude directly instead of
through tenders.
? The Boston Consulting Group estimated that average
increase in price realization has been around USD 1.7/bbl
Min
after the establishment of SOCAR Trading leading to an
average gain above USD 360M/year since 2009 to
SOCAR Group
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? SOCAR Trading continues to grow with LNG as a key
focus area for SOCAR Trading and has seen rapid growth
since 2017.
sales by discharge port
FY2019
Split by product
Split by crude origin
$36.3bn
Revenue
Azeri/Caspian
North America
Light
13.3
441
MENA
Middle MTm
MMbbl
Russia & CIS
~200
distillates
crude
74 MTm
Heavy
SOCAR Trading
Volumes
WAF
Employees
North Sea
Source : SOCAR Trading
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Strictly confidential and not for public useCOMPANY UPDATE
2021
? SOCAR Group
? SOCAR Trading - Corporate
? SOCAR Trading - Liquefied Natural Gas Activities
? SOCAR Trading - Liquefied Natural Gas Projects
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Strictly confidential and not for public useLNG TRADING ACTIVITIES
Trading Physical & Financial LNG and Natural Gas
On average every team member has 15 years of experience in
LNG, Gas and structured transactions.
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Traded more than 11mn tonnes globally since 2017
LNG TRADING
First FOB deals in 2018 with lifespan until 2022
Mid term LNG supply to Far East in place until 2026
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Strictly confidential and not for public useLNG TRADING PERFORMANCE
LNG/Natural Gas volumes & partners
Highlights
LNG & Gas Global Presence
? Building on the success of Malta LNG project, the
Company continues to develop its LNG portfolio.
? The Company has successfully developed its
trading activities globally (signed more than 54 LNG
MSPAs), delivering safely LNG to almost all Far
East consuming countries, Middle East, India,
Turkey and main European gas importer countries
(UK, Iberia region, France and Italy). SOCAR
Trading loaded several cargoes from Gladstone
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(Australia) both in 2018 and 2019 which were
delivered to South Korea and China. Significant
volumes were also delivered to Pakistan under spot
tendering activity. The current supply portfolio until
2022 is primarily comprised of FOB volumes from
Offtake
Sabine Pass.
? SOCAR Trading has currently gas shipper license in
Italy, Spain and UK and is in advanced stage to Supply
obtain it in Netherland and France Going forward,
the Company aims to develop the gas trading
capabilities in rest of the European gas hubs.
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Strictly confidential and not for public useCOMPANY UPDATE
2021
? SOCAR Group
? SOCAR Trading - Corporate
? SOCAR Trading - Liquefied Natural Gas Activities
? SOCAR Trading - Liquefied Natural Gas Projects
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Strictly confidential and not for public useSUSTAINABLE DEVELOPMENT
In the heart of SOCAR’s development strategy
? Responsibility for achieving the SDGs lies not only with
? In 2015, the UN adopted 17 Sustainable Development
governments, but also with the private sector and civil
Goals (SDGs) and specific targets for each Goal.
society.
? Azerbaijan joined the UN SDG Program in 2015. One of
? SOCAR has prioritized 11 SDGs and has undertaken a
the targets set by the country is to reduce greenhouse
number of initiatives guided by the commitments set by
gas emissions by 35% by 2030 compared to the 1990
the government for each target.
baseline.
Please refer to SOCAR Sustainable Development Report for more details
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Direct environmental impact of STSA investment into Malta LNG-to-Power project
? Europe’s first LNG-to-Power project was successfully built and
financed with SOCAR Trading being a leading member of the
consortium
? The project constitutes a 210 MW gas powered plant,
regasification facility, and a floating storage unit
? Powering the existing and new power plants with natural gas,
the project has reduced emissions by 50% and particulate
matter by over 90% compared to the previous power
generation energy mix
? LNG is an ideal solution for Malta being a cleaner alternative
to all other fossil fuels. By using LNG, the same amount of
power output can be reached with less fuel
Source : SOCAR, Electrogas Malta
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Strictly confidential and not for public useMALTA LNG
STSA’s Flagship LNG Project
? Malta used to have 570MW of fuel oil-based electricity generation capacity and made the
decision to re-gasify the country by tendering a relevant infrastructure project
th
? On the 13 of October 2013, ElectroGas Malta Consortium (EGM - consisting of GEM,
Siemens, SOCAR Trading & Gasol) won the tender to deliver natural gas and electricity to
ENEMALTA, a state-owned utility, under 18-year Gas Supply and Power Purchase
Agreements
? EGM Proposal was based on:
? Floating Storage Unit (FSU) for LNG – a conversion of an existing LNG Carrier
with a 125,000 m3 storage capacity
12 LNG FSU & Jetty
? Fixed Jetty – breasting and mooring type dolphin structure to which the FSU will be
permanently moored for the period of 18 years
? Onshore re-gasification facilities – with maximum operating capacity of
89,000m3/hr
? Combined cycle power plant – with a gross capacity of 210 MW, inherent reliability
of 99% and efficiency of 54%
? Fixed price for gas and power – for the initial 5 years from the commencement of
commercial operations and indexed thereafter
? Construction began in December 2014, mechanical completion achieved, and facilities
commissioned in January 2017.
210MW CCGT Power plant
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Strictly confidential and not for public useMALTA LNG PROJECT SET UP
Malta project is an integrated LNG-to-Power project
Floating Storage Unit (FSU)
New Power Plant Existing power plant converted by
- built by Siemens Wartsila to run on gas and HFO
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Regasification Plant
Jetty with cryogenic
Unloading platform
pipeline
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Strictly confidential and not for public usePROJECT OVERVIEW: THE POWER PLANT
Combined Cycle Gas Turbine Plant built by Siemens
? The power station consists of a Combined Cycle Gas Turbine (CCGT) Plant
that have a nameplate capacity of 210MW
? The plant has Siemen’s 3x SGT 800 gas turbines of 50 MW and 1x SST-900
steam turbine of 65MW
? The plant has an inherent reliability of 99% working at a combined cycle
efficiency in excess of 54% (LHV).
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? From the start of the project, the gas turbines became operational in 18 months.
The steam turbine came on stream in month 24, and combined cycle operations
commenced at that stage.
? Open Cycle Operations were achieved in April 2017 with Combined Cycle
Operations achieved in August 2017
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Strictly confidential and not for public useVIDEO OF MALTA LNG-TO-POWER PROJECT
.
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https://vimeo.com/247805324/23f87fe71e
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Strictly confidential and not for public useIVORY COAST LNG-TO-GAS PROJECT
Project overview
Public Shareholders 16%
? Project Background: In partnership with
industry leaders, implementation of an LNG-to-
gas project to supply up to 500 million scf/d of
natural gas to Ivory Coast’s utility, CI-Energies
and meet C?te d’Ivoire natural existing and
future gas deficit for its electricity production.
? Project main parameters:
? Floating Storage Regasification Unit in
Abidjan
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? Gas pipeline connections to the main gas
grid.
? 180 MW power plant is also considered as
part of the project scope.
Operator
? Project Status: Preliminary surveys are
completed, and final investment decision
expected in Q4 2020, with construction
scheduled to start shortly thereafter.
https://vimeo.com/221752132/c6fc03c02b
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Strictly confidential and not for public use |
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