Sources of Natural Gas Supply - European Union 2001 Indigenous Net Imports 45% Production 55 % 2002 Indigenous Net Imports 48% Production 52 % 2030 Indigenous Imports 80% Production 20 % 13% 14% 80% 20% 19% 18% 55% 53% 12% 12% 1% 3% Import Norway Import Russia Import Algeria Import Others Indigenous Production Indigenous Production Imports Source: EU-forecast, EU Energy, Issue 86, July 2nd, 2004 Source: Eurogas

Forecast of Gas Supply – OECD Europe Source: „Security of Gas Supply in Open Markets - LNG and power at a turning point“, Edition 2004 (OECD/IEA)

New projects / Investment needs Source: International Energy Agency (2002a).

Requirements for realisation of new projects Investment necessity in transmission networks  US$ 50 to 75 billion in the next decades 1) Investment need in Russia, the Middle East and Africa not included Prerequisites  attractive investment climate for the natural gas industry in Europe  Necessity for long term stable arrangements with relevant regulatory authority 1) Source: Gas Matters Today, 25.09.03 ref. IEA statement

Gas Reserves around Europe Source: OMV Gas GmbH, May 2004

Nabucco Gas Pipeline New gas supply route to Europe from Turkey to Austria via Bulgaria, Romania and Hungary

Project Partners OMV OMV Gas Gmbh, Austria MOL MOL Natural Gas Transmission Ltd., Hungary Transgaz S.N.T.G.N. Transgaz S.A., Romania Bulgargaz Bulgargaz EAD, Bulgaria BOTAS Botas Petroleum Pipeline Corporation, Turkey

Nabucco Gas Pipeline Strategic Goals of Project Opening a new gas supply corridor for Europe from Middle East and Caspian regions Raise transit profiles of participating project countries Contribution to security of supply for partner countries and for Europe as a whole Strengthening the turntable position of Austrian pipeline grid and the Hub Baumgarten within the European network

Nabucco Gas Pipeline Nabucco‘s Market Shares result from . . . Cost competitiveness vis-a-vis other new projects Large gas fields in Middle East and Caspian region Supply diversity – relative to already linked sources Nabucco partners take-off gas to partially meet their future gas demands

Nabucco Gas Pipeline Proposed route Source: OMV Gas GmbH, May 2004

OMV Gas GmbH - Transmission Pipelines through Austria CZ 34,82 0,72 F 2,89 WAG SK D Baumgarten Oberkappel 5,65 Burghausen PENTA HAG 0,18 West 0,26 0,19 TAG H Mengenflüsse im Jahr 2002: (insgesamt rd. 40 Mrd. m³) Ost West System (HAG, WAG, Penta West) ca. 9,9 Mrd. m³ Nord Süd System (TAG und SOL) ca. 29,6 Mrd. m³ (TAG Loop II Stage III – Erhöhung ab 2007 von derzeit rund 26 Mrd. m³ Erdgas auf 32 Mrd. m³) die bestehenden 2 Leitungen sind dann insgesamt um eine dritte Leitung erweitert. (Gesamtlänge 375 km) Wir sind im Mittelpunkt der europäischen Gasströme positioniert und unser Gesamtnetz weist eine Länge von rd. 2000 km auf. Mittels langfristigen Transitverträgen (ship-or-pay) mit hohen Mengen können die notwendigen Investitionen in ein leistungsfähiges Pipeline-System gesichert werden. Einerseits gibt es Unternehmen (OEG, TAG, etc.), die daran verdienen, andererseits bringen die steigenden Durchsatzraten economies of scale-Effekte, welche eben auch niedrige Transporttarife auch für die inländischen Kunden garantieren. . I + II NABUCCO 2,60 Murfeld SOL I Arnoldstein SLO HR 21,06 1,62

Nabucco Gas Pipeline Basic Pipeline Data

Results of Market Study 2010 2020 31,0 25,5 10,5 4,5 Source: The Boston Consulting Group, June 2004

Nabucco Gas Pipeline Time schedule / Milestones (1) REALIZED In October 2002 a co-operation agreement was signed by the project partners - goal is to conduct a feasibility study for constructing the pipeline 1H 2003 saw - the preliminary pipeline route approved and all border crossings fixed - the finalisation of the working program - the application for EU-funding Interim market study was finalised in 2H 2003 and the technical and environmental studies started 1H 2004 saw first results of the Technical Working Group and initial considerations on legal and tax issues

Nabucco Gas Pipeline Time schedule / Milestones (2) REALIZED Nabucco Company Pipeline Study GmbH, Vienna was found as Joint Venture of the five partners in February 2004. Scope of the Company: - coordination of the study phases - coordination/execution of marketing activities - lobbying/negotiations with regulatory authorities - negotiations/marketing of the transportation capacity Review of market study and refining of business model by end of June 2004 Appointment of ABN Amro as financial advisors to project in July 2004

Nabucco Gas Pipeline Time schedule / Milestones (3) TO BE REALIZED Foreseen steps for the 2H 2004: Finalisation of all study phases Final results of Technical Working Group Final run of business model Completion of financial feasibility study Assessment of legal frameworks and tax issues Negotiations with shippers  Basis for decision of the project partners how to proceed with the project.  Signing of Partnership Agreement for construction and operation phases.

Nabucco Gas Pipeline Time schedule / Milestones (4) TO BE REALIZED Finalisation of Feasibility Study End 2004 Detailed Technical Design / Environmental Assessment Study 2005 – Mid 2006 Construction to begin around 2H 2006 Construction completed and pipeline operational around End 2009