Eckhard Wiemann Brussels October 2003 GAS SUPPLY POTENTIAL FOR EUROPE GTE Conference October

EU Gas Demand and Gas Import Availability Additional Potential Available Export EU Demand EU Additional Potential EU Production 13.5 TCM indigenous Resources 172 TCM Resources in economic reach

OGP MAIN MESSAGES There is sufficient gas resource within and outside the EU/EEA areaThere is sufficient gas resource within and outside the EU/EEA area Economic conditions and continued technological advances will remain key determinantsEconomic conditions and continued technological advances will remain key determinants Continued investment in infrastructure / field development and appropriate risk-sharing mechanisms are neededContinued investment in infrastructure / field development and appropriate risk-sharing mechanisms are needed Diversified supply sources will secure import demand growthDiversified supply sources will secure import demand growth

Second Gas DirectiveSecond Gas Directive EU INSTRUMENTS & INITIATIVES -Infrastructure Incentives - Article 22 Commission Communication on Energy Policy for the enlarged EU, its Neighbours and Partner CountriesCommission Communication on Energy Policy for the enlarged EU, its Neighbours and Partner Countries -Gas infrastructure Proposals -Investment funding (Field Dev./ Infrastructure) -Priority Axes Gas -TEN - Energy financing Revision of TEN - Energy GuidelinesRevision of TEN - Energy Guidelines

Energy related EU Foreign Policy EU - Russia Dialogue EU - Russia Dialogue Euro - Mediterranean Energy co-operationEuro - Mediterranean Energy co-operation Energy Charter Treaty Process Energy Charter Treaty Process Company initiatives - Company initiatives -

EU Facilitating Role Support required business environment and offer financial instruments to secure investments in infrastructureSupport required business environment and offer financial instruments to secure investments in infrastructure Continue to support long-term contracts and long- term capacity reservations in order to bring gas timely to marketContinue to support long-term contracts and long- term capacity reservations in order to bring gas timely to market Take a leading role in market development by providing a stable, predictable regulatory and fiscal environment within the EU & support such an environment in the producing & transit countriesTake a leading role in market development by providing a stable, predictable regulatory and fiscal environment within the EU & support such an environment in the producing & transit countries

Eckhard Wiemann Brussels October 2003 GAS SUPPLY POTENTIAL FOR EUROPE GTE Conference October

Eckhard Wiemann Brussels October 2003 GAS SUPPLY POTENTIAL FOR EUROPE GTE Conference October BACK - UP

Available Export Volumes in Reach of EU Additional Potential Additional Potential (Africa, Middle East, Caribbean & FSU w/o Russia) Caribbean Middle East FSU Africa

EU/EEA Production Forecast including Major Accession Countries Demand Based on EUROGAS + Acc. Countries Estimates Additional Potential Production Forecast

Reserves and Potential in Reach of EU by Regions (BCM)

Reserves and Potential in EU/EEA and Accession Countries (BCM)

Definitions of Gas Resources Reserves: Meaning remaining resources in all currently known gas accumulation, Meaning remaining resources in all currently known gas accumulation, which will be produced in the future under currently economic which will be produced in the future under currently economic conditions and the current available technology conditions and the current available technology Discovered Potential: Discovered Potential: Meaning all other known remaining gas resources, including gas from Meaning all other known remaining gas resources, including gas from undrilled structures, which need new, advanced technologies, or undrilled structures, which need new, advanced technologies, or improved economic conditions or any other incentives to be improved economic conditions or any other incentives to be developed and brought to the market. developed and brought to the market. Undiscovered Potential: Undiscovered Potential: Meaning remaining gas resources, which are of exploratory nature or Meaning remaining gas resources, which are of exploratory nature or speculative I.e. leads indicated by seismic. speculative I.e. leads indicated by seismic. Excluded are all future resources, which are based on geological Excluded are all future resources, which are based on geological statistical methods or the historic rate of discovery. statistical methods or the historic rate of discovery.