1. GRI SSE – latest developments as seen by a concerned TSO OMV Gas, November 2007

2. OMV Gas, Nov. 2007 2 Characteristics of SSE region  Area consists of PL, CZ, SK, A, I, SL,H, RO, BL,GR  Initiative started mid 2006 without Ro and BG  Consumption in SSE 2005 was ~ 150bcm (Italy)  Includes important transit countries and routes – SPP entry ~300mmcm/day, Yamal ~ 110, Mazara ~ 80, BG-Turkey  Is highly dependent on Russian gas for transit and consumption INTRODUCTION to SSE area

3. OMV Gas, Nov. 2007 3 Phases / focus of the GRI SSE so far  Definition of priorities  Emphasis on Compliance for transit routes incl. Transparency and interoperability  Studies on hubs and Regional Grid Manager Start  Investment surveys for transport and storage infrastructure investment plans  Best practice bulletin board  One-stop shop services  ICA / OBA implementation  GTE transparency platform information and EASEEgas efforts Move to practical improvement Current topics  Improvements on the ground: OBAs, Transparency, Platforms for Secondary trading, Bulletin boards  Theoretical issues like the Regional Gas Grid manager (RGGM) and Regional Entry – Exit System (REETS)

4. OMV Gas, Nov. 2007 4 RGGM and REETS – some input In SSE a long-standing balance of interests between producers, carriers, suppliers and new entrants has been achieved – any substantial re-arrangement has to be doublechecked and we should also deal with the producers` concerns and needs Standardisation and improvements for the shippers can be achieved in many ways – new RGGM company should not be necessary, although TSOs also see benefits in closer cooperation The economic autonomy of TSOs should not be touched, although required investment should be made possible in any case Long-term investment still has to be confirmed and guaranteed mainly by long-term shippers` commitments; this system should never by replaced by negotiated inter-TSO payments given the specifics of the region

5. OMV Gas, Nov. 2007 5 +Good opportunity for networking, information exchange, start of harmonization +Producers` participation would be welcomed + Smaller group size would some see as more efficient + Advocate continuing the GRI until 3rd package takes effect How was the GRI SSE perceived so far by the TSOs ? -So far, the concrete output is small - The basic situation, with only a few shippers in the systems is not expected to change quickly, so cost/ benefit is an issue - Secondary capacity trading is very limited - There is concern about future independence and the voluntary character of cooperation

6. OMV Gas, Nov. 2007 6 Thank you for your attention OMV Gas Floridotower,Floridsdorfer Hauptstr. 1,1210 Vienna Tel.: +43-1-27500-0 www.omv.comwww.omv.com, harald.stindl@omv.com