2010 Activities - Türkiye Petrolleri AO
Transcription
2010 Activities - Türkiye Petrolleri AO
TURKISH PETROLEUM CORPORATION 2010 Activities SUMMARY OF ACTIVITIES 2010 CONTENTS 2 our vision, mission, values 3 our strategies 4 about us 5 highlights 6 message from the president 8 domestic exploration and production activities 16 international exploration and production activities 22 tpic, tpao’s subsidiary 24 services and technologies TPAO 2010 1 VISION MISSION VALUES our vision 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 mission 2 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. TPAO 2010 our values Merit Effectiveness and efficiency Teamwork and communication Openness to change and innovativeness Environmental awareness Employee satisfaction Share of responsibility, knowledge, experience and authorization Reliability and honesty OUR STRATEGIES our strategies TPAO’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 CNG, pipeline and natural gas storage, • Carrying out renewable energy projects and looking for cooperations in this regard, • Offering technical services supplied by Exploration, Production, 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. TPAO 2010 3 ABOUT US who we are? 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 sole 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. what we do? 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) where we operate? 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, Sudan and Venezuela. 4 TPAO 2010 HIGHLIGHTS • TPAO realized new oil discoveries in Fizan Desert in Libya as an operator. • By 2010, TPpd is the 7th biggest distribution company in the market with respect to volume sold and continues to increase its market share in Türkiye. • TPAO added a new 1,500 HP drilling rig (NOV-1500) to its rig fleet. • TPAO signed technical service contracts for the “Missan Oil Fields” and also “Badra Oil Field” in Iraq. • TPAO won the bid for Mansuriya gas field as an operator and Siba field as a partner in Iraq’s third bidding round in 2010. • Throughout 2010, two ultra deep offshore wells, Sinop-1 and Yassıhöyük-1 wells were drilled and in 1Q of 2011, drilling operation of Sürmene-1 deep offshore well was completed in the Black Sea. • In order to maintain oil and natural gas production from “Unconventional Reservoirs”, TPAO and TRANSATLANTIC/TEMI signed a “Memorandum of Understanding (MOU)” on April 9th, 2010. • TPAO successfully installed 4-legged platform in Akçakoca Field located in the Western Black Sea Region. TPAO 2010 5 MESSAGE FROM THE PRESIDENT 6 TPAO 2010 Decreasing the sum of invoices we pay to oil and natural gas, and guaranteeing the security of energy supply, like all the other countries, are extremely crucial for Türkiye and in parallel to this, our company’s strategic importance is also increasing. As Turkish Petroleum Corporation, we have increasingly expanded our exploration activities since 2002. Especially, it was extremely enlightening for TPAO that we realized deep offshore drillings of Sinop-1, Yassıhöyük-1 and Sürmene-1 wells in the Black Sea in 2010. Our short term goal, in the light of data obtained from 3 wells drilled, is to reveal the hydrocarbon potential in the ultra deep waters of Black Sea and to open it to the use of Turkish economy. We are excited and aware of that, this aim of our company can open bright and achievable horizons to Türkiye. 2010 became the year in which for the first time, 3 wells were drilled in ultra deep waters of the Black Sea as well as the record of drilling depth, that hadn’t been broken for a long time, was broken. Conducting new business development projects initiated in Venezuela, development of oil discoveries realized in Libya, the operations to be initiated in 2 new fields awarded in Iraq’s bidding round and also carrying out the current domestic and international projects demonstrate that 2011 is going to be a year that requires more struggle. 56 years of success is the product of our dedicated staff. It is my great pleasure to present you “TPAO Activities 2010” brochure. Herewith, I would like to reiterate my sincere gratitude and appreciations to our staff and employees having a great role in realizing these activities for their successful and self-sacrificing efforts. Mehmet UYSAL TPAO President and CEO TPAO 2010 7 DOMESTIC EXPLORATION AND PRODUCTION ACTIVITIES In accordance with our company’s vision, mission and strategies, exploration and production activities carried out in 2010 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 the Black Sea. Total amount of offshore seismic surveys realized in the last 7 years is much more than seismic surveys performed during TPAO’s 56 years of its history. This situation confirms the importance attached to offshore hydrocarbon explorations in recent years. 8 TPAO 2010 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 2010 to establish joint ventures with foreign oil companies. We Are Exploring All Offshore Fields of Türkiye Our investment plan and strategy in 2011 cover not only conducting exploration activities in all unexplored basins of Türkiye, especially the Mediterranean, but at the same time, developing the existing production fields. With its 3 wellequipped seismic crew, TPAO performed a 12 20/30 crew/month geophysical study with a total of 936 km of 2D and a 30 07/30 crew/month study with a total of 1,315 km2 of 3D onshore seismic survey throughout the year. Besides, a total of 562 km2 of 3D offshore seismic survey was completed as of end of 2010. With the evaluation of such acquired geophysical data, it is planned to intensify drilling activities at offshore fields in the coming years. 15,424 point shots of gravimetric and magnetic study were carried out by the gravity-magnetic acquisition crew working under TPAO Geophysical Operations Department. With these studies, it has been targeted to give a further fillip to the country’s economy by probable oil and natural gas discoveries. Also, in the first quarter of 2010, the required underwork preparations were completed rapidly which were essential for farm-out activities. The farm-out process was announced in April 2010 by inviting major oil companies to a visit for evaluating the related data and TPAO intended to initiate negotiations with the target of conducting exploration activities with those foreign companies interested in the designated fields. Furthermore, TPAO is planning to start farm-out studies in the first quarter of 2011 which will cover the licences located at Mediterranean (offshore) fields. With great perseverance, enthusiasm and expectations, TPAO has given priority to realize exploration, drilling and production investment programs also onshore fields. Offshore exploration-drilling operations are being carried out intensively in 2010. In this scope, TPAO has drilled 1 deep offshore well in the Western Black Sea under its operatorship for the newly-established TPAO-CHEVRON partnership and 1 deep offshore well was drilled in the Black Sea within the scope of TPAO-PETROBRASEXXONMOBIL partnership.TPAO completed the drilling operations of another deep offshore well (Sürmene-1) at its sole cost and the operatorship in the Black Sea by the platform Leiv Eiriksson supplied under the Rig Farm-out Agreement in first quarter of 2011. In 2010, TPAO performed 27 25/30 crew / month geological field survey with 5,566 km2 of areal coverage in different oil exploration zones at the Black Sea, Mediterranean, Central, Eastern and South Eastern Anatolia Regions. TPAO 2010 9 New Crude Oil Fields 8 new oil fields at South Eastern Anatolia Region were discovered in 2010. New Natural Gas Fields 5 new natural gas fields were discovered at the Thrace Region in 2010. Joint Domestic Exploration, Development and Production Activities Onshore Drilling Activities In 2010, TPAO realized most of its drilling activities at South Eastern Anatolia, Thrace Regions and other regions. Also, three offshore wells within the scope of Deep Offshore Project were drilled in East, Central and West Black Sea region. 10 TPAO 2010 Although drilling of 92 wells were planned in 2010, drilling activities were realized in 103 wells due to good results and achievements obtained. The drilling of 92 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, Ankara, Niğde, Gaziantep, Trabzon, Zonguldak etc. and acquired significant data to determine hydrocarbon potentials of these fields. TPAO-CHEVRON-NVT PERENCO Within the framework of TPAO-CHEVRON-NVT PERENCO Joint Exploration and Development Agreement (JEDA), drilling of Cudi-1 well was realized under TPAO operatorship in 2010. TPAO managed to complete the well in early May, 2010 in spite of the harsh conditions in the field. Hereafter the well completion operations of this well were conducted in September, 2010. Parties agreed to terminate the agreement that had been in effect since 1988. In November 2010, the licence extension period has expired and Parties applied to the GDPA for the relinquishment of these 5 licences covering the Contract Area. After the GDPA approval regarding the relinquishment of licences has been received, Parties have executed the Termination Agreement which aimed at finalizing the agreement by settling the financial obligations of the Parties under the JEDA. TPAO-TIWAY OIL Within the framework of TPAO-TIWAY OIL partnership under the Exploration and Development Agreement, production activities in Adıyaman Cendere Field have been carried out throughout the year. TPAO-NVT PERENCO Within the framework of TPAO-NVT PERENCO Joint Venture Agreement, production from Kastel, Karaali and Yalankoz fields has been ongoing throughout the year. As planned in the previous year, the drilling of G.Kırtepe-7 and G.Kırtepe-8 wells were realized under TPAO’s operatorship in 2010. For the fields that are under PERENCO’s operatorship, drilling of B.Gercüş-B1 was realized as a result of reevaluating formerly-acquired seismic lines. In addition to the geological and geophysical studies conducted by the Parties during the year, TPAO and PERENCO have executed the 10th Amendment to the JV Agreement in order to include the Softek and Gercüş licences into the Joint Venture Area. In December 2010, Parties held a meeting in order to discuss the following year’s Work Program and Budget and agreed on initiating the drilling operations of G.Kırtepe-9 well in early 2011. Parties also intend to conduct a 2D seismic study of 186 km in the newly-added Softek licences in 2011. TPAO-AMITY OIL Under the Thrace Basin Joint Operating Agreement with AMITY OIL, production from Göçerler, Adatepe, D.Adatepe, Velimeşe, B.Velimeşe, Reisdere, Eskitaşlı and Dikilitaş fields has continued throughout the year. Drilling of D.Beyciler-H1 well was realized under TPAO’s operatorship in mid 2010. Following the gas discoveries in Pelit-1 and Pelit-2 wells, Parties decided to add Pelit field as a production field to the JOA fields. In mid 2010, the sale of AMITY OIL to TRANSATLANTIC Petroleum company was realized and the Parties have successfully carried out the 2010 Work Program and Budget through the end of the year. As a result of the meeting held in December 2010, Parties also agreed on conducting a 4D seismic study at Göçerler, Adatepe and D.Adatepe fields. TPAO – TRANSATLANTIC Within the scope of unconventional studies to be conducted at the Thrace Basin and Southeast Anatolian licences, a Memorandum of Understanding (MOU) was executed by and TPAO 2010 11 12 TPAO 2010 between TPAO and TRANSATLANTIC on April 9th, 2010. Following the execution of the MOU, TransAtlantic initiated the technical studies by re-entering the Kaynarca-1 well first. However, due to some technical problems, hydrofrac operation could not be conducted at Kaynarca-1 well. Therefore, Parties decided to re-enter Kepirtepe-1 well and managed to perform hydrofrac operations. Offshore TPAO-PETROL OFİSİ-TIWAY OIL-FOINAVON Under the ongoing Black Sea Joint Operating Agreement, natural gas production from Ayazlı, D.Ayazlı and Akkaya Production Platforms has continued throughout the year. The manufacturing of Akçakoca Production Platform was completed and it was installed at its location in summer 2010. The sale of Stratic Energy Corp. to Foinavon Energy Inc was realized and the partnership was then among TPAO, PETROL OFISI,TIWAY OIL and FOINAVON. The completion and tie-back operations of Akçakoca-3 and Akçakoca-4 were initiated after the rig GSP-31 was installed on the platform. TPAO is planning to drill G.Akçakoca-1 and Akçakoca-5 as soon as the completion operations of Akçakoca-3 and Akçakoca-4 have been completed and the Platform is expected to be put into production in 2011. TPAO-PETROBRAS-EXXONMOBIL Under the Rig Farmout Agreement (RFOA) signed by and between TPAO and PETROBRAS on April 30th, 2009 for deep water drilling in the Black Sea, the platform Leiv Eiriksson has entered to the territorial waters of Türkiye. With the platform mobilized around Sinop, the drilling operations of the first deep-water well, Sinop-1 well, were initiated under TPAO-PETROBRASEXXONMOBIL partnership in February 2010. During the drilling operations, TPAO has formed a mobile laboratory that would conduct some paleontological studies for the partnership through the execution of Paleo Services Contract in March 2010. The well was released as a gasshowing well in August 2010 and Parties decided to carry on the studies and analysis through the execution of PVT, Coring and Isotube Analyses Contract. TPAO-CHEVRON KARADENİZ B.V. As a result of the farm-out studies conducted at licence 3921 since 2009, TPAO and CHEVRON started negotiations in order to form a Joint Operating Agreement which would cover the drilling of 2 deep-water exploration wells in the Black Sea. The Black Sea JOA became effective on September 16th, 2010 and Parties immediately started the joint technical studies. Meanwhile, the drilling operations of Yassıhöyük-1 well were also initiated. The well was completed under TPAO’s operatorship in November 2010 and Parties decided to continue joint studies in the light of Yassihöyük-1 well. Parties held a meeting in order to determine the following year’s Work program and Budget in late December 2010. TPAO 2010 13 TPAO-EXXONMOBIL Within the scope of Joint Operating Agreement between TPAO and EXXONMOBIL, CSEM studies have been conducted in the first quarter of 2010 in order to interpret the 2D and 3D seismic data better, acquired from Kastamonu and Samsun blocks. As a result of the evaluation of CSEM studies, Parties agreed on the location of the well to be drilled by the platform “Deepwater Champion” in 2011. Besides, EXXONMOBIL has started the necessary procedures to be able to conduct an “aeromagnetic” data acquisition study for the interpretation of the Central Black Sea blocks in the last quarter of 2010. Western Black Sea Exploration, Production and Development Project In 2010, TPAO and its project partners PETROL OFİSİ, FOINAVON (formerly known as Stratic Energy) and TIWAY Turkey have continued production from existing gas fields in Western Black Sea and advanced in developing Akçakoca gas field to produce from a new 4-legged Drilling/ Wellhead platform. TPAO as the operator in the subject leases, is currently producing about 14 TPAO 2010 350,000 SCM from 7 wells through 3 offshore tripod type platforms. Akçakoca site is located in a water depth of 95 meters and approximately 14 km from shore. The development plan for the Akçakoca field encompasses fabrication and installation of a 4-legged Jacket over the two predrilled wells, namely Akçakoca-3 and Akçakoca-4, installation of a 7 km 12” offshore pipeline and drilling three new wells via a self contained modular drilling rig, which will also be used for completing all wells. Akçakoca Drilling/Wellhead Platform has a 4-legged Jacket structure with four main and four skirt piles having an average penetration of 105 m and a two level Topside. The principal function of the platform is to act as a support and protection structure for the wellheads and pipeline risers and to provide means of surface access for well control and maintenance. The Cellar Deck houses all the wellheads, production equipment skids and relevant auxiliary and control systems while the Main Deck is reserved for installation of a drilling rig and subsequent drilling and completion operations. A 7 km 12’’ subsea pipeline was laid by S-lay pipelay barge in April 2010 and tied-in to the existing offshore pipeline system via a piggable wye connection for transporting the produced gas from the Akçakoca platform to the Çayağzı onshore gas processing plant located 5 km east of the town Akçakoca. Jacket and Topside were successfully installed on July 03rd, 2010 and August 19th, 2010, respectively and pre-commissioning of Topside and the Offshore Pipeline was completed in September 2010. The tie-back and well completion operations started in October 2010 for the two existing wells and will be followed by drilling and completing three new wells. First gas production from the Akçakoca field is expected in the first quarter of 2011 after the gas is introduced into the system and the Topside is commissioned. Domestic Crude Oil Production In 2010, TPAO produced 12.7 million barrels 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 Production In 2010, TPAO’s natural gas production was 260.7 million sm3. The gas produced in Thrace Region was sold to 13 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 Projects Batı Raman Field Enhanced Oil Recovery Project Raman Field Production Enhancement Project Garzan Field Water Injection Project Batı Kozluca Field Water Alternating Gas (WAG) Injection Project l l l l Kuzey Marmara and Değirmenköy Fields Underground Natural Gas Storage Project Commercial activity in Kuzey Marmara and Değirmenköy Fields Underground Natural Gas Storage Facilities was started on April 13th, 2007. The first storage period was completed succesfully and injection - withdrawal operations are being continued in the fourth 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 phases (Phase I, Phase II, Phase III) by the end of 2016 and necessary works for Phase I and Phase II have already been started in 2008. TPAO 2010 15 INTERNATIONAL EXPLORATION AND PRODUCTION ACTIVITIES 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; 16 TPAO 2010 Kazakhstan TPAO 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 2010, yearly crude oil production is 1.71 million barrels (TPAO’s share is 0.91 million barrels), cumulative crude oil production is 25.07 million barrels (TPAO’s share is 15.78 million barrels) and crude oil reserves are 30.7 million barrels (TPAO’s share is 15.7 million barrels). TPAO is in the West Caspian Sea; Azerbaijan Exploration-Production and Transportation Projects TPAO 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. Azeri-Chirag-Guneshli (ACG) Project In 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. Shah Deniz Project The Shah Deniz Structure is located in the offshore South Caspian Sea, 70 km southeast of Baku and 70 km southwest of the Azeri-ChiragGuneshli field. The concession has an areal coverage of approximately 860 km2. Throughout the ACG Project having 5.6 billion barrels of oil reserves, and producing 1.6 billion barrels of crude oil upto now (TPAO’s share; 77.7 million barrels), crude oil production is foreseen to reach 815,400 barrels/day in 2011. In 2010, with an average of 825,400 barrels/day, 301.3 million barrels of oil (TPAO’s share; 6.1 million barrels) was produced. With the Shah Deniz Phase-1 Field Development and Construction Decision, construction period started in 2003 and commercial production started on March 7th, 2007 and is currently continuing with 4 wells. In 2010, 6.9 billion m3 of natural gas (TPAO’s share 502 million m3) and 14.7 million barrels of condensate (TPAO’s share 1.07 million barrels) were produced and by the end of 2010, cumulative production reached to 23.6 billion m3 natural gas and 49.7 million barrels of condensate. TPAO 2010 17 Within the scope of Phase-2, it is estimated that construction decision will be taken in the first quarter of 2013 and the first gas delivery will be realized in the first quarter of 2017. Alov Project Alov Exploration Project covers the Araz-AlovSharg 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. 18 TPAO 2010 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 and Shah Deniz Projects 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. Transportation of a large portion of ACG oil, all of Shah Deniz condensate and some Turkmen oil, has continued and from Haydar Aliyev Terminal 286.9 million barrels of oil was loaded to 366 tankers in 2010. Cumulatively, 1.088 million barrels of Azeri and Kazakh Oil have been transported through BTC Pipeline to the world markets with 1,387 tankers by the end of 2010. South Caucasus Natural Gas Pipeline (SCP) Project Within the scope of SCP Project, Shah Deniz natural gas is being transported to GeorgianTurkish 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 new compressor stations and/or looping. In 2010, totally 6.8 billion m3 of natural gas was transported and 4.36 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. Libya TPAO is continuing its activities by its subsidiary Turkish Petroleum Overseas Company (TPOC) since 2000. Block NC188-NC189 Exploration Project In 2010, relinquishment studies of the blocks were carried out. The effective date of the Exploration and Production Sharing Agreement signed between TPOC and Libya National Oil Company(NOC) regarding NC188 Block in Ghademes Basin and Block NC189 in Sirte Basin was February 22nd, 2000. In both licences TPOC is the operator and ONGC, a subsidiary of India National Oil Company, has 49% share. In both licences, 2D and 3D seismic surveys, data acquisiton and interpretation studies were carried out and two exploration wells in NC188 Block and three exploration wells in NC189 Blocks were drilled. TPAO 2010 19 Block 147/3-4 Exploration Project The effective date of the Exploration and Production Sharing Agreement signed between TPOC and NOC was December 10th, 2005. According to this agreement, TPAO has to fulfill the following work obligation in 5 years exploration period: seismic data acquisition and drilling 2 wells in an area of 2.783 km². The seismic data acquisition obligation was fulfilled by acquiring 573 km 2D and 352 km2 3D seismic data in 2007. 20 TPAO 2010 In 2010, 10 exploration wells were drilled and 6 of them were oil discovery. The first oil discovery well was realized by drilling of A1-147/3 well, exploration well in 2009 and the total number of oil discovery wells is 7. The exploration period which ended on December 10th, 2010 was extended to June 10th, 2012 by NOC. In the prospects where oil has been discovered, the drilling of new appraisal wells has started. Additionally, 2D and 3D seismic surveys, data acquisiton and interpretation studies will be carried out and new wells will be drilled according to the interpretation of the all available data. New Ventures Iran The Memorandum of Understanding signed between Turkish Ministry of Energy and National Resources and Iranian Petroleum Ministry on October 17th, 2009 has been extended for three months. In this context, instead of phases 2223-24 of South Pars Field Development and Production Project, new phases were offered for the evaluation. The technical and commercial evaluation studies are in progress for the aforementioned new phases. After establishment of suitable investment environment, TPAO will resume its activities in Iran. Iraq Since 1994, TPAO has been working closely with the Iraqi Ministry of Oil for exploration, development and production opportunities in Iraq. In addition to TPAO’s success in first and second Petroleum Licensing Rounds organized by the Iraqi petroleum authority PCLD (Petroleum Contracts and Licensing Directorate) in 2009 and awards of Badra and Missan development fields, TPAO has offered three bids for the Iraq’s third Petroleum Licensing round and has been awarded 20 year term gas development contracts for Siba as a partner and Mansuriya gas field as an operator in Iraq’s third bidding round in 2010. of Basra agreed to produce 100 million standard cubic feet of gas a day at a price of $7.50 per barrel of oil equivalent. The Consortium including TPAO, Kuwait Energy and KOGAS (Korea Gas Corporation) won the Mansuriyah gas field, in Diyala province to produce 320 million standard cubic feet of gas a day for $7 per barrel of oil equivalent produced. Kuwait Energy will be the operator of Siba field, participating with a 60 percent contractor share and TPAO participating with 40 percent. TPAO will be the operator of Mansuriya field, participating with a 50 percent contractor share, Kuwait Energy 30 percent and KOGAS 20 percent. The development activities will be commenced after the official disclosure of the effective date. Other Countries In 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, Colombia, Egypt, Sudan, Yemen and Venezuela. Kuwait Energy and TPAO consortium won the bid for Siba gas field in Iraq’s southern oil hub TPAO 2010 21 TPIC, TPAO’S SUBSIDIARY 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 focuses its exploration and production activities in Colombia as well as continues its business development activities in Venezuela, Ecuador and Bolivia. 22 TPAO 2010 Colombia Gonzalez Block TPIC has been conducting joint exploration activities with its partner ECOPETROL; National Oil Company of Colombia, in Gonzalez Block in Catatumbo Basin since February 2008. TPIC serves as the Operator of the block where each partner has 50 % participating interest in the project. The first exploration well, Rio Zulia West-3 (RZW-3), was completed in March 2010 with oil discovery. The second well, Rio Zulia West-4 (RZW-4) was spudded in December, 2010 and the drilling operations are ongoing. Maria Conchita Block In 2009, TPIC signed an Exploration and Production agreement for the 243 km2 Maria Conchita Block located in the north of Colombia in the Guajira Basin with National Hydrocarbon Agency - Agencia Nacional de Hidrocarburos (ANH). TPIC holds 51% of the shares as well as serving as the operator whereas Genel Enerji holds 40% and Multiservicios RJT LTDA holds 9 % of the shares. In 2010, the acquisition, processing and interpretation of 120 km2 3D seismic data was performed following the completion of the negotiations with the indigenous communities. An exploration well is going to be drilled in 2011. Oil Field Services In 2010, TPIC enhanced oil field services by increasing the number of crews both in Türkiye and abroad. TPIC drilled over 130,000 m in depth in 77 wells (3 wells abroad) and completed 353 wells (29 wells abroad) so far. Compared to 2009, TPIC achieved 25 % increase in the number of wells drilled in a year. Activities in Türkiye Within the scope of activities in Türkiye, TPIC continued its drilling and well completion services for TPAO, Zorlu Energy, Sanko Holding, GÜRİŞ Construction and Engineering Co. Inc. and BM Construction and Engineering Co. Inc. The drilling and well completion services are going on within TPAO, Zorlu Energy and Sanko Holding Projects. Iraq Activities TPIC holds the advantage of having access rights to the 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) for drilling and completion of 45 wells and was awarded the project in 2010. The drilling operations are going on with two wells in SOC project. Kazakhstan Activities TPIC Aktobe Branch Office founded in 1999, is successfully conducting projects in Kazakhstan. Within the scope of Kazakhstan activities, drilling services performed for Kazakh Turk Munay (KTM) Company in 2010. The project is still going on with the 5th well of the project. Oil Products Trade Since 1999, TPIC has continued to increase the volume of its oil and oil products trade with its strong logistics system and operation capability. Starting trade relations with Iraq State Oil Marketing Company (SOMO) in 1999, TPIC had successfully managed petroleum and petroleum products trading business in Iraq during 20002008. With its extensive experience gained throughout the years, TPIC continues carrying out oil products trade abroad, and has extended its operations to Iraq, Iran, Turkmenistan, Syria, Northern Cyprus and Mediterranean. TP Petroleum Distribution Inc. (TPpd) TP Petroleum Distribution Inc. was founded on February 16th, 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 16th, 2009. TPpd, with the target to reach market share of 10% in the Turkish Market by 2020, continued its gas stations network development activities in 2010. As well as establishing trustable and principled working relations, TPpd ensured government reliability to its dealers. By the end of 2010, TPpd achieved a number of 102 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 2010, 78,000 tons of diesel was imported from Hatay-Dörtyol Facility and sold. In 2010, total volume of sales is increased by 27% and reached to 405,000 tonnes. By 2010, TPpd is the 7th biggest distribution company in the market with respect to volume sold and continues to increase its market share year by year. TPAO 2010 23 SERVICES & TECHNOLOGIES Seismic Data Acquisition Seismic 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 which has 12 receiver lines, 120 receiver channels, totally 1,440 active recorder channel system. Crew-1 has 2,500 channel capacity. 24 TPAO 2010 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 has 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 which has 12 receiver lines, 120 receiver channels, totally 1,440 active recorder channel system. Crew-3 has 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 have 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. Non Seismic Data Acquisition Gravimetric and Magnetic Surveys Non-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 Systems For 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, PCbased 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 Sensing With the aim 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, have been initiated in 2008. Although EIS Project has been structurally completed in 2005, data entrance is underway. TPAO 2010 25 Additionally; MAPRAYS system put into operation in 2008 that provides more effective licence tracking is in the service of the users. 26 TPAO 2010 3D Visualization and Interpretation Center TPAO 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. Data Bank By 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) Systems By 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 System Within 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 2010, 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 31 wells of TPAO, 3 offshore wells of TPAO in the Black Sea Project, 8 wells drilled by TPOC in Libya and 1 geothermal well 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 Bolu Çimento, AS Çimento and Nuh Çimento. Research Center has provided field services and consultancy during the field application of totally 26 wells of water shutoff treatments including 7 wells from Raman field and 9 wells from Karacan, Sarıcak and G.Sarıcak of Diyarbakır fields. Stratigraphy Laboratory Services Foraminiferal Micropaleontology, Palynology, Nannoplankton, Organic Maturation Laboratory. l l l l Sedimentology and Reservoir Geology Laboratory Services Lithological Analysis, Petrographical Analysis, Sedimentological Core Analysis, Powder X-Ray Diffraction (PXRD) Analysis, Scanning Electron Microscope (SEM) and Energy Dispersive Spectrometer Analysis (EDS), Core Spectral GR Log and Scanner, Sedimentology a. Facies and Environmental Studies, b. Reservoir Determination and Characterization. l l l l l l Organic Geochemistry Laboratory Services Pyrolsis (RE-6) Analysis, Gas Chromatography Analysis, Soil Gas Analysis, l l l TPAO 2010 27 l l l Gas Chromotography Mass Spectrometery Analysis (Biomarker Analysis), Stable Isotope Analysis (EA-GC-C-IRMS), Organic Petrographical Analysis. Drilling Technology Laboratory Services Drilling and Completion Fluids Analysis, Cement Slurry Analyses, Rock Mechanics and Well Stability Analysis, Cement and Cement Additives Quality Control Tests, Drilling Fluid Additives Quality Control Tests, API and High Pressure-High Temperature (HPHT) Filtration Test. l l l l l l and expectations with best 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. Onshore Drillings Deep Well Experience (7,216 m), Directional and Horizontal Wells, ERD (Extended Reach Drilling), Multi Lateral Well Drillings- Batı Raman Field. l l l Reservoir Engineering Laboratory Services Fundamental and Special Core Analysis, Reservoir Fluid (PVT) Analysis, Reservoir Conditions Viscosity Tests, Enhanced Oil Recovery (EOR) Studies, Porosity and Permeability Measurements Under Overburden Pressure. l l l l l l Production Technology Laboratory Services Petroleum and Petroleum Product Tests, Accredited Petroleum Product Tests, Water Analysis, Gas Chromatography Analysis, Tracing and Controlling of Corrosion, Well Stimulation Services, Quality Control Tests, l l l l l l l Drilling Services The 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 28 TPAO 2010 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 manufactured by National Oilwell Varco (USA). Drilling activity at Yuvaköy-1 well was completed with NOV-2000 Rig during the year. In 2010, a new 1,500 HP drilling rig (NOV-1500) was purchased and delivered in the middle of 2010. Offshore Drillings In year 2010, Batı Ayazlı-1 and Doğu Akkaya-1 wells, whose water depth were less than 80 m, were drilled with jack-up for West Black Sea Exploration Project in TPAO-POAŞ-TIWAYSTRATIC joint venture. Akçakoca Project is a Joint Venture (JV) Project with a partnership of four different companies (TPAO, TIWAY, POAŞ and Foinavon Energy). Akçakoca JV project started in 2006 by drilling two exploration wells, Akçakoca-3 and Akçakoca-4 in Akçakoca field. Both of these wells were completed with a sub-sea wellhead, and temporarily abandoned for further development in Akçakoca field. The development work involves an installation of a production platform with a drilling rig. TPAO 2010 29 Rig contract started on November 30th, 2010. Between November 30th, 2010 and December 7th, 2010 tie-back operation of Akçakoca-well was carried out and rig was skidded in order to continue with the tie-back operation of Akçakoca-4 well. Tie-back operation of Akçakoca-4 well was completed on December 15th, 2010 and both of these wells were ready for well completion operations on December 17th, 2010. Since December 31st, 2010, workover operations of Akçakoca-4 well have been carried out. At the beginning of 2011, Akçakoca-3 and Akçakoca-4 wells will be put into production. Hereafter, Akçakoca-5 and G. Akçakoca-1 holes will be drilled. Deep Water Drilling Technology TPAO is continuing its drilling activities in Western Black Sea within the context of joint exploration 30 TPAO 2010 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 to increase its efforts to discover new fields for providing added value to the national economy. Throughout 2010, two deep offshore wells, Sinop-1 and Yassıhöyük-1 wells were drilled and drilling operation of Sürmene-1 well was completed at the beginning of 2011. Drilling operation of Sinop-1 well was conducted under operatorship of PETROBRAS. Yassıhöyük well, a joint venture well with CHEVRON in half shares and Sürmene-1 well (offshore Trabzon) were conducted under TPAO’s operatorship. For the wells drilled by TPAO, a consultancy company is hired whose employees’ experiences in deep water drilling are more than 10 years in Leiv Eiriksson. It is significant for TPAO to have such a support not only to gain experience in a high-cost project like this, but also to invest to its future. For the wells drilled in international standards, TPAO worked with more than 45 service companies. A new team, comprising technical expertise of well planning, contracting and administrative branches, is formed within TPAO Drilling Department. This new team has worked together with the consultants and third parties in an effective environment. By means of reservoir and well analysis software, production performance of both field and well can be observed historically. Well cross sections, digital logs, well completion operations and well performance can be monitored simultaneously. Besides, future production forecasts can be made by “Decline Curve Analysis”. Well Completion Services Well 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. Production Field Development Technology All oil and natural gas fields are monitorized actively by multidisciplinary teams using special software which has been regularly updated digital database and by broad communication network system created among center and fields. Reservoir model can be created and petrophysical rock properties such as porosity and permeability and distribution of reservoir can be monitored easily by reservoir modeling and simulator. Besides, pressure and gas/oil/ water saturation changes by production can be observed thus regions in the field that are not drained can be determined. Using different production scenarios, best case can be obtained to get the highest recovery factor for the field. TPAO 2010 31 headquarters tpao’s international offices Turkish Petroleum Corporation Söğütözü, 2180th Avenue No: 86, 06100 Çankaya - Ankara / TÜRKİYE Phone: +90 312 207 20 00 Fax: +90 312 286 90 00 - 286 90 01 e-mail: tpaocc@petrol.tpao.gov.tr web: www.tpao.gov.tr Azerbaijan TPAO / TPIC / TPBTC Office 340 Nizami Street, 370000 ISR Plaza, 4th Floor Baku / AZERBAIJAN Phone: +99 412 498 95 26 - 493 14 98 Fax: +99 412 498 14 35 e-mail: info@tpao-az.com tpao’s district managements Adıyaman District Management 02040 Adıyaman / TÜRKİYE Phone: +90 416 227 28 11 Fax: +90 416 227 28 07 - 18 Batman District Management 72100 Batman / TÜRKİYE Phone: +90 488 213 27 10 Fax: +90 488 213 41 49 - 213 39 14 Trakya District Management 39750 Lüleburgaz Kırklareli / TÜRKİYE Phone: +90 288 417 38 90 Fax: +90 288 417 22 03 tpao’s subsidiary TPIC, Turkish Petroleum International Company Söğütözü Avenue, No: 27, 06520 Söğütözü - Ankara / TÜRKİYE Phone: +90 312 285 44 55 Fax: +90 312 285 38 09 e-mail: tpican@tpic.com.tr This report is printed on 100% recycled paper. TPOC Libya Office Al Fatah Tower 1, 9th Floor, No: 91 Tripoli / LIBYA Phone: +218 21 335 14 94 - 335 14 96 - 97 Fax: +218 21 335 14 95 e-mail: tpoc@tpoclibya.com TPOC Iraq Office Baghdad Al – Wazereyah 301 Section 5th St. No:6 Baghdad / IRAQ Phone: +90 312 207 20 00 / 18 58 - 18 59 e-mail: otekeli@tpao.gov.tr KazakTurkMunai Ltd. Joint Company Business Center “Okan Inter-Continental”, Abay Avenue, 113, 473000, Astana / KAZAKHSTAN Phone: +7 7172 39 10 25 Fax: +7 7172 39 10 26 e-mail: ktm@aktm.kz www.tpao.gov.tr