Azerbaijan Strategic Performance Unit Sangachal Terminal Presentation BP Azerbaijan Strategic Performance Unit July, 2009

2 Azerbaijan Country Context Area 86,600 km 2 (33,774 sq miles) Population 8.5 million Oil history – Famous Azerbaijan Oil Firsts: First oil well in the world was drilled (not dug by hand) in 1848 in Baku in Bibi Heybat oil field In the 1 st largest oil pipeline in the world was built from Baku to Batumi km x 20 sm In 1900 Azerbaijan produced more than 50% of world’s oil – 11.4 million tons About 80% of oil production during 2nd world war in former USSR was made in Baku (peak production – 23,5 million tons in 1941) First offshore oil production in the world started in Azerbaijan (1924 – Bibi Heybat beach, 1947 – Oily Rocks in open sea)

3 150 year of hydrocarbon production

4 BP and Co-Venturers’ Interests in Azerbaijan Projects

Alov SOCAR 40% BP 15% StatoilHydro 15% ExxonMobil 15% TPAO 10% EnCana 5% ACG BP 34.1% Chevron 10.3% Inpex 10.0% SOCAR 10.0% StatoilHydro 8.6% ExxonMobil 8.0% TPAO 6.7% Devon 5.6% Itochu 3.9% Hess 2.7% Shah Deniz StatoilHydro 25.5% BP 25.5% SOCAR 10.0% LUKOil 10.0% Total 10.0% NICO 10.0% TPAO 9.0% BTC 30.1% 2.4% 25% 3.4% 8.9% 2.5% 6.5% 5% 2.5% 8.7% BP Chevron SOCAR StatoilHydro TPAO Itochu Hess Total Inpex Eni ConocoPhillips SCPC StatoilHydro 25.5% BP 25.5% SOCAR 10.0% LUKOil 10.0% Total 10.0% NICO 10.0% TPAO 9.0% BP and Co-Ventures' Interests in Azerbaijan Projects

6 First oil Nov 1997 Current production 130 mbd gross Total investment $2.2bn Chirag platform Sangachal EOP terminal ACG Early Oil Project

7 Recoverable volumes 5.4 bn bbl gross Peak production 1 mmbd gross Total capital cost $25 bn gross 2009 production forecast mmbd Project start-up dates: –EOP Nov 1997 –Central Azeri Feb 2005 –West Azeri Dec 2005 –Gas injection May 2006 –East Azeri Oct 2006 –Phase 3 (DWG) Apr 2008 ACG Full Field Development 1 ACG gross production Chirag Azeri mbd Deepwater Gunashli 232

8 BP Azerbaijan Vision Offshore: Chirag People: 3000 BP staff + Agency Infrastructure: 2 export pipelines Sangachal EOP Terminal Production: 130 mbd Chirag, CA/CWP, WA, SD,EA 4000 BP staff + agency 4 export pipelines and rail Expanded Sangachal terminal Oil over 600 mbd Gas start-up 10 operating platforms + projects 2000 BP staff 3 export pipelines One of the biggest terminals in the world Oil mmbd in 2009 Gas 415 mmscf/day in 09; peak 822 mmscf/day Condensate peak of 58 mbd GROWTH Capital Spend 2007: $9m/day Central Azeri / CWP East Azeri Sangachal Shah Deniz 2 Sangachal Chirag West Azeri Central Azeri / CWP East Azeri GROWTH Capital Spend 2004: $12m/day Chirag NREP, WREPNREP, WREP, SCP, BTC, Rail Sangachal Baseline: 2004End 2007The Future Shah Deniz 1 DWG Chirag West Azeri COP NREP, WREP, SCP, BTC, Rail InamAlov Shah Deniz 1

9 Recoverable volumes (total) tcf of gas (1050 mmbbl of condensate) Stage 1 peak production mmscfd (142 mboed) Total capital cost - $4 bn 2009 gas production forecast mmscfd 2008 condensate production forecast - 35 mbd Project start-up dates : −TPG 500 platform installed: April 2006 −First gas: Dec 2006 −First gas to Georgia: Jan 2007 −First gas to Turkey: Jul 2007 BOTAS Stage 1 Decline Sales BTC SPA Georgia SPA Azerbaijan SPA Shah Deniz

10 Sangachal Terminal 1992Sangachal Terminal 2000 Sangachal Terminal 2001Sangachal Terminal 2002Sangachal Terminal 2003Sangachal Terminal 2004 Sangachal Terminal Sangachal Terminal 2005Sangachal Terminal 2007

11 Northern Export Route Western Export Route BTC SCP SANGACHAL TERMINAL ACG going to Azerbaijan HP-SD going to Azerbaijan LP going to Azerbaijan Third party export oil Third party A Strategic Hub for the Caspian: Potential (Oil) Operational (Oil) Potential (Gas) Operational (Gas) Produced Water Alov 24” Oil from Chirag Inam SD Phase II Deepwater Gunashli 30” Oil from Azeri 30” Oil from Azeri 30” Oil from Azeri 4” 26” 12 SD Phase I COP

12 BAKU TBILISI CEYHAN Sangachal Erzurum TURKEY GEORGIA AZERBAIJAN BLACK SEA CASPIAN SEA MEDITERRANEAN SEA BAKU TBILISI CEYHAN Sangachal Erzurum TURKEY GEORGIA AZERBAIJAN BLACK SEA CASPIAN SEA MEDITERRANEAN SEA South Caucasus Pipeline First gasDec ‘06 Ultimate Capacity20 bcma Length690 km Diameter42” Gross Capex$1.1bn Baku-Tbilisi-Ceyhan Pipeline Full capacity (2008)1 mmbd Length1768 km Diameter46/42/34” Gross Capex$3.9 bn First tanker departed4th June 2006 Current BTC export capacity 750 mbd 3000m 2000m 1000m Sea Level BTC Pipeline Route Profile (Distance in km) Azerbaijan GeorgiaTurkey Azerbaijan, Georgia, Turkey Pipelines Project

13 Istanbul - the big issue behind BTC Oil volumes shipped through Bosporus increasing every year (pipeline oil would have increased volume by 50%) Oil tanker traffic increasing as a percentage of total transits through Bosporus Black Sea Mediterranean Sea Istanbu l

14 Platforms Central Azeri East Azeri West Azeri Shah Deniz TPG 500

15 RoW Reinstatement The official inauguration of BTC Georgia Pump Station BTC Ceyhan Marine Terminal RoW Reinstatement The official inauguration of BTC Georgia Pump Station

16 4th June 2006: First Tanker Loading at Ceyhan Terminal was successfully completed. “British Hawthorn” sailed away with 592,000 barrrels on board. First Tanker Loading

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