ACTIVITY REPORT - Entrepose...

2016 ACTIVITY REPORT

Our VisionWe aim to be the worldwide reference in the field of Underground Storage for all products using all techniques, at the cutting edge of technology, encompassing consulting engineering, construction, operation and maintenance.

Our CommitmentsSafety first, Environmental awareness, Quality and Client satisfaction.

Our ValueConfidence.

Contents03 A Word from the Management04 Our Organization and Teams06 Key Figures08 Our Expertise16 Our Commitments20 Our Activities26 Contacts

P 2 2016 ACTIVITY REPORT

A Word from the ManagementIn 2016, the Oil and Gas Industry continued to be impacted by low oil prices and associated low investment levels. Activities were also affected by the reduced economic growth rate in Asian countries.In parallel, a growing interest for the development of renewable energies associated with energy transition increases the uncertainties in our industry but represents future opportunities in the field of underground energy storage.

Within this difficult context, Geostock showed strong resilience and managed to improve its performance up to very satisfactory levels given the adverse situations that our industry is facing:b Once again, Geostock SAS delivered

excellent results and demonstrated its ability to adapt within a complex and changing context,

b UGS GmbH, after having adapted its structure in 2015 to fit the German market, resumed with good results,

b Geostock Asia Pte Ltd recovered from the disappointing results seen last year, and showed high performance thanks to new projects in the Middle East,

b The promising perspectives of Geostock de México SA de CV have been confirmed with the progress made with construction of the Shalapa LPG underground storage facilities in Veracruz State, which will be in operation next year,

b Geostock Sandia LLC, created last year from the consolidation of Geostock US and Sandia Technologies, has been unfortunately impacted by the slack market in North America and has not performed as expected,

b Geogreen SA’s level of activity remained quite low due to the very small market in the field of CO2 storage.

Geostock, with support from its shareholders Entrepose and Total, has sought and seized some major opportunities that will secure its future in the short term and support its development.

Among them, Shalapa in Mexico remains a very promising opportunity for the development of our packaged services from engineering to operation and maintenance of multiproduct underground storages.

Turkey is a promising country where, together with its major shareholder Entrepose, Geostock is targeting several large-scale natural gas underground storage projects.

Due to geopolitical tensions in the region, the Middle East is showing interest in underground storages that could result in major projects.

Not to mention Brazil, China and India where important prospects are set to be started in the near future.

We are therefore confident that Geostock will be successful in all its endeavours, with the support of its professional and dedicated staff and thanks to the mutual trust we enjoy with our customers.

Pascal BAYLOCQ Managing Director – Geostock Holding

President and CEO – Geostock SAS

Jean-Michel NOÉ CEO - Geostock Holding

GEOSTOCK P 3

Our International Organization and Teams

Geostock is a subsidiary of Entrepose Group (Vinci Group) and Total and is established on every

continent through its worldwide subsidiaries, offering proximity services to its clients.

10%90%

STONORGAZTURKISHBRANCH

BANYANCAVERNSSTORAGE SERVICES

GEOSUD 50%

CNPASSURANCES

98%

STORENGY 50%

IFPEN 3%BRGM 1,5%

VTS 45%JCPL 20%

VGS 40%

100% 100% 100% 100% 60% 95,5% 2%100%

GEOSTOCK GEOSTOCKDE MEXICO

GEOSTOCKASIA

GEOSTOCKDO BRASIL

GEOSTOCKNORTH AMERICA

GEOGREEN GEOSUDUGS

100% 35%

GEOSTOCKSANDIA

GEOSTOCK US FEDERAL SERVICES

100% 100%

GEOMETHANE

100%


Jean-Luc CAMBONVincent LE QUELLEC

Pascal BAYLOCQJean-Michel NOÉ

Dominique LEBTAHIGilles LE RICOUSSE

Fabienne SOORIAH

3 4 5 76

1 GEOSTOCK HOLDING - PARIS (France) Jean-Michel NOE – CEO Pascal BAYLOCQ – Managing Director

2 GEOSTOCK SAS – PARIS (France) Management Committee Pascal BAYLOCQ – President and CEO Gilles LE RICOUSSE – Vice President Operations & Development Dominique LEBTAHI – Vice President Operations & Development Jean-Luc CAMBON – Advisor to the President Vincent LE QUELLEC – Vice President Administration & Finance Fabienne SOORIAH – Vice President Business Development

3 UGS GmbH – Berlin (Germany) Matthias HERTER & Robert SCHELER Senior Managing Directors

4 GEOSTOCK SANDIA, LLC – Houston, Tx (USA) Donald STEHLE – President and CEO

5 GEOSTOCK DO BRASIL Ltda – Rio de Janeiro (Brazil) Jonathan ROYER-ADNOT – Managing Director

6 GEOSTOCK ASIA Pte Ltd – (Singapore) Jintang YAN – General Manager

7 GEOGREEN SA – Paris (France) Gilles MUNIER – CEO

GEOSTOCK P 5

Key Figures

Backlog

90.4 M€ end 2016

Operating Income

+3.2 M€

Workforce

500 people

GROUP CONSOLIDATED TURNOVER (M€)

CASH AFTER LONG TERM DEBTS (M€)

KEY FIGURES

0

20

40

60

80

100

20162015201420132012201120102009

0

10

20

30

40

50

60

20162015201420132012201120102009

81 78.7

83.7

88.7

89.7

97.6

84.1

80.6

7.6

11.4

12.2

13.7

11.9

12.4

8.6

56.5

OPERATION 52%ENGINEERING

33%

WELL SERVICES15%

Support

Well services

Engineering

Operation

Miscellaneous

Well services

Engineering

Operation

Miscellaneous

Well services

Operation

Engineering

0 5 10 15 20 25 30 35 40

MISCELLANEOUS

WELL SERVICES

OPERATION

ENGINEERING

LIQUEFIED HYDROCARBONS 15%

EFFLUENTS & OTHERS

13%

LIQUID HYDROCARBONS 25%

NATURAL GAS 47%

OPERATION 35%

ENGINEERING 40%

ADMINISTRATION 13%

WELL SERVICES 12%

GPL

LIQUID HYDROCARBONS

NATURAL GAS

OTHERS

MISCELLANEOUS

WELL SERVICES

ENGINEERING

OPERATION

KEY FIGURES

0

20

40

60

80

100

20162015201420132012201120102009

0

10

20

30

40

50

60

20162015201420132012201120102009

81 78.7

83.7

88.7

89.7

97.6

84.1

80.6

7.6

11.4

12.2

13.7

11.9

12.4

8.6

56.5


33%

WELL SERVICES15%

Support

Well services

Engineering

Operation

Miscellaneous

Well services

Engineering

Operation

Miscellaneous

Well services

Operation

Engineering

0 5 10 15 20 25 30 35 40

MISCELLANEOUS

WELL SERVICES

OPERATION

ENGINEERING


EFFLUENTS & OTHERS

13%


NATURAL GAS 47%

OPERATION 35%

ENGINEERING 40%

ADMINISTRATION 13%

WELL SERVICES 12%

GPL

LIQUID HYDROCARBONS

NATURAL GAS

OTHERS

MISCELLANEOUS

WELL SERVICES

ENGINEERING

OPERATION

HEADCOUNT PER ACTIVITY

GROUP SALES PER ACTIVITY (% OF GROSS INCOME)

KEY FIGURES

0

20

40

60

80

100

20162015201420132012201120102009

0

10

20

30

40

50

60

20162015201420132012201120102009

81 78.7

83.7

88.7

89.7

97.6

84.1

80.6

7.6

11.4

12.2

13.7

11.9

12.4

8.6

56.5


33%

WELL SERVICES15%

Support

Well services

Engineering

Operation

Miscellaneous

Well services

Engineering

Operation

Miscellaneous

Well services

Operation

Engineering

0 5 10 15 20 25 30 35 40

MISCELLANEOUS

WELL SERVICES

OPERATION

ENGINEERING


EFFLUENTS & OTHERS

13%


NATURAL GAS 47%

OPERATION 35%

ENGINEERING 40%

ADMINISTRATION 13%

WELL SERVICES 12%

GPL

LIQUID HYDROCARBONS

NATURAL GAS

OTHERS

MISCELLANEOUS

WELL SERVICES

ENGINEERING

OPERATION

KEY FIGURES

0

20

40

60

80

100

20162015201420132012201120102009

0

10

20

30

40

50

60

20162015201420132012201120102009

81 78.7

83.7

88.7

89.7

97.6

84.1

80.6

7.6

11.4

12.2

13.7

11.9

12.4

8.6

56.5


33%

WELL SERVICES15%

Support

Well services

Engineering

Operation

Miscellaneous

Well services

Engineering

Operation

Miscellaneous

Well services

Operation

Engineering

0 5 10 15 20 25 30 35 40

MISCELLANEOUS

WELL SERVICES

OPERATION

ENGINEERING


EFFLUENTS & OTHERS

13%


NATURAL GAS 47%

OPERATION 35%

ENGINEERING 40%

ADMINISTRATION 13%

WELL SERVICES 12%

GPL

LIQUID HYDROCARBONS

NATURAL GAS

OTHERS

MISCELLANEOUS

WELL SERVICES

ENGINEERING

OPERATION

KEY FIGURES

0

20

40

60

80

100

20162015201420132012201120102009

0

10

20

30

40

50

60

20162015201420132012201120102009

81 78.7

83.7

88.7

89.7

97.6

84.1

80.6

7.6

11.4

12.2

13.7

11.9

12.4

8.6

56.5


33%

WELL SERVICES15%

Support

Well services

Engineering

Operation

Miscellaneous

Well services

Engineering

Operation

Miscellaneous

Well services

Operation

Engineering

0 5 10 15 20 25 30 35 40

MISCELLANEOUS

WELL SERVICES

OPERATION

ENGINEERING


EFFLUENTS & OTHERS

13%


NATURAL GAS 47%

OPERATION 35%

ENGINEERING 40%

ADMINISTRATION 13%

WELL SERVICES 12%

GPL

LIQUID HYDROCARBONS

NATURAL GAS

OTHERS

MISCELLANEOUS

WELL SERVICES

ENGINEERING

OPERATION

GROUP SALES PER PRODUCT LINE(% OF GROSS INCOME)

GEOSTOCK P 7

Our Expertise

Geostock’s strength lies in its integrated offer ranging from engineering to operation throughout the entire life of a project, and the know-how of its international teams entirely dedicated to underground storage.

This allows the company to meet our clients’ needs.

Engineering Services

OUR SERVICESECONOMIC STUDIESb Market survey and evaluation, b Planning studies, b Economic feasibility assessment, b Due diligence, b Business model evaluation.

DESIGNb Orientation and prefeasibility studies,b Site selection,b Exploration, b Feasibility studies, b Project planning,b Reservoir and Caverns engineering, b Permitting, b Conceptual & Basic design, b Modelling.

CONSTRUCTIONb Engineering, b Detailed design, b Tendering, b Procurement, b Construction management, b Commissioning and start-up.

DRILLING, WORKOVER, SOLUTION MININGb Drilling,b Well logging,b Well completion, b Workovers, b Solution mining, b Brine, CO2 and effluent disposal

in deep aquifers, b Operation of leaching plants.

Geostock offers a large scope of services, from consulting & engineering to design and construction supervision.

FROM CONSULTING & ENGINEERING TO DESIGN AND CONSTRUCTION SUPERVISION

A network of companies around the world enables Geostock to propose a global offer throughout the full storage life cycle as well as tailor-made solutions adapted to client’s needs.

Mined Caverns Department Meeting


Operation Services

Geostock offers three different operating service models that enhance storage performance while ensuring the integrity of installations.

Geostock provides O&M services in more than 20 storages in the world, in mined or salt caverns as well as in depleted or aquifer storages, for LPG, Liquid products or Natural Gas. The company has operated Geosel and Geogaz storage facilities in France for nearly 50 years.

It is also fully involved in the operation of Jurong Rock Caverns storage in Singapore through its 35% shareholding in Banyan Caverns Storage Services, operator of the storage.Geostock has also just signed a contract to operate a new salt cavern storage in Mexico on a 20-year long term basis.

Technical Assistance

Participation in storage operation

Storage Operator

OUR SERVICESb Storage Operation Management,b Storage Monitoring,b Asset technical and Integrity Management,b Corrosion studies,b Technical studies on equipment and facility,b Well design and operations,b Storage audits,b Health, Safety and Environment,b Site decommissioning and closure.

The “Design, Build & Operate” virtuous cycle allows Geostock to constantly improve its services by operating facilities that it has designed and built.

Control room - Geosel Manosque (France)

GEOSTOCK P 11

Technical Know-how

MULTI-DISCIPLINARY EXPERTISEb Subsurface technologies (Geology,

Geophysics, Geomechanics, Hydrogeology, Reservoir Engineering, Civil Engineering, Mining and Solution Mining),

b Drilling and Well services,b Surface technologies (General

installations, Process, Pipelines, Electricity/Instrumentation, Control Systems),

b Management, Operation and Maintenance,b Closure and abandonment of underground

gas storage facilities.

Geostock is an active member of several worldwide scientific and technical societies in its field, such as SMRI (Solution Mining Research Institute), ISRM (International Society for Rock Mechanics), or SPE (Society of Petroleum Engineers).

Geostock benefits from a whole range of skills, with over fifty years of know-how and expertise in underground storage technologies, for all techniques and all products.

A WHOLE RANGE OF SKILLS

Diadema - Argentina(Depleted Gas Field)


LEACHED SALT CAVERNSSalt cavern storage requires the presence of a significant salt deposit. The cavern is created by dissolving the salt in fresh water (leaching).

Its shape and volume are established by sonar. The caverns are elongated in shape, several hundred meters high and several tens of meters in diameter. They are usually located at a depth

of between 200 and 2,000 meters and can have a volume of several hundred thousand cubic meters.

The stability of the cavern is guaranteed by the right choice of geometry and continuous monitoring of the pressure, temperature and flow during operation. Its tightness results from the intrinsic properties of salt.

AQUIFERS AND DEPLETED FIELDSA porous, permeable geological formation (the reservoir) - a depleted deposit or an aquifer - overlain with an impermeable stratum and structured so as to ensure lateral containment.

It is usually located at a depth of between 500 and 2,000m. During the storage phase, the gas is compressed and injected into the reservoir

in gaseous state through a series of production wells. During recovery, the gas is withdrawn under the effect of its own pressure.

Equipment on the surface includes specifically compression, processing and metering facilities. Monitoring wells are used to check the position of the gas and the tightness of the reservoir.

MINED ROCK CAVERNSA mined cavern consists of one or more tunnels carved out of the rock (limestone, chalk, granite, etc.). The tunnels are usually located at a depth of 50 to 200m. Their tightness is based on the principle of hydraulic containment, which defines the depth at which the cavern needs to be located to allow for the water naturally contained in the surrounding rocks

to flow constantly towards the cavern at all points, thus containing the product inside the storage cavern.

The mined cavern technique - both with and without a lining, as applicable - may also be applied to the cryogenic storage of gases having a liquefaction point below -10°C.

PRODUCTS STOREDb Liquid hydrocarbons,b Liquefied hydrocarbons,b Natural gas, b Compressed air,b Hydrogen,b Effluents.

PRODUCTS STOREDb Natural gas,b Compressed air,b CO2,b Effluents.

PRODUCTS STOREDb Liquid hydrocarbons,b Liquefied hydrocarbons,b Natural gas (compressed

or liquefied).

Geophysical modelling

GEOSTOCK P 13

Research and Innovation

Efforts firstly involved certain tools that had been developed in previous years.

The thermodynamic simulation tool for gas storages in salt caverns (GUSTS V2) has been improved ergonomically. A new version of the software is expected at the beginning of 2017.

The Asset Integrity Management approach has been supplemented for storage wells in porous environments or in salt caverns (a new software interface is currently being developed) and a similar approach has been launched for mined caverns. Discussions with our subsidiary, Geostock Sandia, have enabled us to initiate a complementary method on the other side of the Atlantic, for use with storages in porous environments.

In addition to these projects that extend over several years, came several themes initiated in 2016:b The improvement of our capacities for

coupled hydro-mechanical calculations in porous environments (with possible outlets in the field of induced seismicity) and in fractured media (transitory stability of mined caverns),

b The improvement of our corrosion inspection methods.

Finally, innovation at Geostock has also consisted of adapting our storage techniques to the requirements of the future, and more particularly to the requirement of storing energy to accompany the development of intermittent renewable energies.

Efforts have been concentrated on concepts of the “power-to-gas” type, with the storage of hydrogen or “power-to-gas” with electrolysis-methanation-oxycombustion (EMO) and the storage of CO2, O2 and CH4.

Again within the context of energy storage, Geostock has continued its research into Compressed Air Energy Storage (CAES) in mined caverns, lined or not, and in salt caverns.

Geogreen is also extremely active in R&D, with subsidised collaborative R&D projects.

Three projects are currently on-going (ENOS, CO2DISSOLVE, FLUIDSTORY), focussing on the following innovative directions: b Coupling of geomechanical and fluid

dynamics digital simulation tools, b Quantification of risks, b Investment strategy estimates based

on real options.

With its Research and Development programme, Geostock has improved the solutions it offers to its clients in terms of risk management, the integrity of storage facilities and improved performance.

Research and Innovation are a priority for Geostock in order to improve Safety, Reliability & Performance.

Salt cores


Well InspectionLoenhout (Belgium)

Operation ShaftLavéra (France)

Mined Cavern ConstructionJurong (Singapore)

Our Commitments

Our commitments are focused on the Health & Safety of our Personnel, on Environmental Protection, on Customer Satisfaction through Technical Excellence and Professionalism and a high level of Ethics & Integrity.

Our Commitments

To achieve these objectives, Geostock remains in an ongoing process of constant improvement and has initiated a process to promote the Group of the “HSE ESSENTIALS”.

Our HSE performance is supported by a strong HSE Management System and a network of professional HSE Teams working in the various Geostock companies, involved in applying HSE standards at every stage of projects: Design, Construction and Operation.

Health, Safety, Security and Environmental Awareness have always been and remain a core value and a priority policy for all Geostock activities .

OUR PERMANENT OBJECTIVEZero Lost Time AccidentZero Major AccidentZero Environmental Damage

LES 10 FONDAMENTAUX HSEpour atteindre nos objectifs

■ zéro accident de travail■ zéro incident ayant des conséquences majeures ■ zéro pollution

THE 10 GEOSTOCK HSE ESSENTIALSto achieve our objectives

■ zero accidents at work■ zero accidents with major consequences ■ zero pollution

Every day, through

my exemplary behaviour and my dedication, i pledge to respect

and implement the 10 GEOSTOCK HSE ESSENTIALS.

!

WORK PERMITI know and apply all Work Permit instructions

and its supplementary authorisations.

HSE VIGILANCEI actively take part in risk prevention by passing on pertinent information. I am vigilant when carrying

out my tasks, every day.LOCKOUT-TAGOUT

The correct lockout-tagout procedure is used, checked and reported to all involved.

SIMULTANEOUS OPERATIONS Risks associated with simultaneous operations and interference are analysed and appropriate

preventive measures are de�ned.

PERSONAL PROTECTIVE EQUIPMENT

I always wear my basic PPE. I wear PPE speci�cally adapted to the risks to which I am exposed.

WARNING / EMERGENCY INSTRUCTIONS

I know what to do if there is an emergency. I can identify the meeting points, emergency

communication devices and emergency exits.

ROAD RISKSI respect the Highway Code and speci�c driving and parking regulations on building sites and work sites.

I take into account the risks in each country.

SECURITYIdentity and access checks on work sites are

mandatory. My overseas travel is properly organised. I protect my business data.

ALCOHOL / DRUGS / ADDICTIONI do not drink alcohol or take drugs where I work.

Addiction of any type is forbidden.

ENVIRONMENTAL PROTECTIONPollution risks (dangerous products, hydrocarbon

leaks, etc.) are systematically identi�ed and appropriate preventive measures are de�ned.

AN ONGOING PROCESS OF CONSTANT IMPROVEMENT


QUALITY MANAGEMENTGeostock Management has taken the decision to implement a Quality Management System in accordance with the internationally recognized ISO9001 standard. Implementation of this system requires compliance with the following principles:

b Customer satisfaction,b Safety of personnel and property,b Respect for the environment,b Staff motivation.

Geostock Management therefore commits itself to ensure that implementation of the Quality Management System remains an absolute priority.

This means that everyone concerned, at every level, does not merely apply the rules but also fully adheres to this quality policy.

The simplification of our management system continued in 2016 with a more explicit approach to risk management in order to prepare for the new version of the ISO 9001 standard.

Geostock and UGS are ISO 9001:2008 certified.

In 2016, Banyan Cavern Storage Services (BCSS) in which Geostock has a 35% share, was certified as being in compliance with ISO 9001:2015 requirements.

MAJOR HSE ACHIEVEMENTS FOR TWO GEOSTOCK COMPANIES

Our German subsidiary UGS GmbH has been awarded an “Appreciation by the German Social Accident Insurance Institution for the Materials and Chemical Industry” for 1000 days (at mid-2016) without any reportable accident at work.

20 years without accident at the Sennecey Plant (France) operated jointly by Geostock and the owner. On 13th May, the operation site at Sennecey-le-Grand reached its 20th anniversary (i.e. 7305 days) without any work accident with days off.

These results confirm the involvement and professionalism of everyone in terms of everyday compliance with HSE good practice.

Water curtain test

GEOSTOCK P 19

Our Activities

A PRESENCE IN 25 COUNTRIES IN 2016b Algeriab Argentinab Australiab Belgiumb Brazilb Bulgariab Chinab Franceb Georgiab Indiab Italyb Japanb Mexicob Morocco

b Omanb Portugalb Spainb Singaporeb South Koreab Swedenb Switzerlandb Turkeyb United Arab

Emiratesb United Kingdomb United States

of America

SOME MAJOR ON-GOING PROJECTSb Georgia (Samgori South Dome) - Natural gas in Depleted gas fieldb Italy (Cornegliano) - Natural gas in Depleted gas fieldb Mexico (Shalapa) - LPG in salt cavernsb Middle-East - Mined cavern b Tuz Gölu (Turkey) - Natural gas in salt cavernsb United Kingdom (Hilltop) - Natural gas in salt caverns

New markets are emerging for liquid hydrocarbons storage in the Middle East, due to geopolitical tensions in this region.

Liquid Hydrocarbons

IN BRAZIL, Geostock provided consulting services to DTA ENGENHARIA in PONTE NEGRA for site investigation and a prefeasibility study for a mined cavern project.

IN FRANCE, Geostock continued to provide full operation management for the GEOSEL liquid underground storage facility comprising 30 salt leached caverns.

IN INDIA, in MANGALORE for EIL (acting on behalf of ISPRL, the storage owner), tests and commissioning of one mined cavern were successfully completed and filling of the cavern began.

MANGALORE’s underground storage is a strategic two unit crude oil storage, each consisting of two parallel one kilometer long galleries with a total capacity of 1.5 MT of crude oil.

IN SWEDEN, in NYNÄSHAMN, Geostock signed a contract for a study for the conversion of an existing mined cavern into a fuel oil storage.

IN THE UNITED KINGDOM, in NORTH TEES, Geostock was contracted by SABIC for the review of a brine re-saturation operation and well integrity tests for salt caverns,

NEW OPPORTUNITIES IN THE MIDDLE EAST:2016 was a year for new market areas in this region, with the signature of two contracts:

b A Prefeasibility Study for a Crude Oil project in Mined Rock Caverns in RAZ MARKAZ for OTTCO (Oman Tank Terminal Company).

b Preliminary studies for a large Crude Oil underground storage project in Mined Rock Caverns.

MINED ROCK CAVERNS LIQUID STORAGE IN SINGAPORE UNDER JURONG ISLANDGeostock continued its prime contractor assistance activities, on behalf of JTC Corporation, on the JURONG ROCK CAVERNS project and its assistance with operation of the first built caverns through BANYAN CAVERNS STORAGE SERVICES (BCSS), a company located in SINGAPORE in which Geostock has a 35% share.

Mined CavernVisakhapatnam (India)


The LPG market, rather dynamic, is driven by petrochemical and chemical activities and offers interesting prospects.

Liquefied Hydrocarbons

IN FRANCE, the company has continued to work in PETIT-COURONNE for SHELL, supervising the abandonment process of LPG caverns and studying their conversion to CAES (Compressed Air Energy Storage).

In SENNECEY-LE-GRAND, Geostock assisted BUTAGAZ with mothballing their propane mined cavern facility.

In LAVERA for PRIMAGAZ, and in DONGES for TOTAL, Geostock prepared the supervision programme for the 2017 decennial inspections.

The company also provided Full Operation Management for the GEOGAZ LAVERA LPG mined storage.

IN USA, in MORRIS, IL, our subsidiary Geostock Sandia has carried out studies for the conversion of an ethane mined cavern to EP mix.

IN AUSTRALIA, INDIA, JAPAN, PORTUGAL, SOUTH KOREA, UNITED KINGDOM AND THE UNITED STATES, Geostock continued with its technical operation assistance activity for underground storage facilities.

LPG STORAGE IN SHALAPA (VERACRUZ STATE) - MEXICOGeostock continued to provide engineering services to CYDSA (and its subsidiary ASSE) for project management assistance during the construction of its propane underground storage in a salt leached cavern.

In addition to these services, our subsidiary Geostock de México and CYDSA signed a 20-year contract in April 2016 (as from the commercial operation commencement date) for Operation & Maintenance of the facility. A preliminary phase of this contract started mid-2016 to prepare for future operation (recruitment, training, organization, set-up) and participate in the first gas fill and performance test. As of end of 2016 about 50% of final staff (33 people) were already on board.

Geostock and Geostock Sandia also provided assistance to CYDSA for the leaching of caverns which will be converted into storage at a later date, and to ENTREPOSE for the underground part of the on-going project.

Mined CavernNingbo (China)

GEOSTOCK P 23

Due to a growing worldwide market, new projects are emerging in this field.

Natural Gas

IN BELGIUM, in Loenhout for an aquifer underground gas storage for FLUXYS, for which Geostock has a long-term operational assistance contract, two well corrosion and logging programmes, supervision and interpretation were successfully carried out.

IN CHINA, our subsidiary Geostock Asia provided technical assistance for the construction of a natural gas storage cavern in YUNYING for WEGPC.

IN FRANCE, for GEOMETHANE in Manosque, Geostock continues to work at project management level for the development and improvement of existing facilities.

IN GEORGIA, in SAMGORI SOUTH DOME, after completion of the feasibility study obtained by Geostock after a call for tender, the next phase in the project, which involves engineering and the supervision of exploration works in a depleted gas field, was awarded to Geostock by GOGC (GEORGIAN OIL

AND GAS CORPORATION). This contract, which started in September 2016 for a period of eighteen months, is managed with close cooperation between Geostock and UGS.

IN ITALY, in CORNEGLIANO for ITAL GAS STORAGE, Geostock continued its technical assistance and supervision of subsurface construction for the conversion of a depleted gas field into natural gas storage. At the end of the year it was awarded a contract for 3D seismic survey management during the pre-drilling phase.

IN MEXICO, in SHALAPA for ASGO, Geostock reviewed the design and construction of two salt caverns for their conversion into natural gas storage.

IN THE UNITED KINGDOM, Geostock provided technical services for UNIPER at the HOLFORD salt cavern underground gas storage site, mainly on wells.

TUZ GÖLU NATURAL GAS STORAGE - TURKEYGeostock continued its assistance with the construction of a natural gas underground storage in salt leached caverns in TUZ GÖLU for TIANCHEN ENGINEERING CORPORATION (TCC), the EPC contractor for BOTAS, owner of this project.

This project, which involves twelve caverns in two phases of six caverns, with a total working volume of 1 Billion M3 is situated in Aksaray province, 40km south of Tuz Gölu.

Cornegliano, Italy(Depleted Gas Field)


Geostock remains on the look-out for opportunities to store other products, such as compressed air, hydrogen and helium.

Other Products

IN THE UNITED KINGDOM,in Northern Ireland for MOTT MACDONALD, Geostock provided a Front End Engineering Study for a Compressed Air Energy Storage in a salt leached cavern.

IN THE UNITED STATES, b Geostock Sandia signed its first

contract with SHELL for the evaluation of the SORRENTO Salt Dome and its surroundings in Louisiana. The company performed geological studies and geomechanical modeling to address points in regulations covering Salt Dome caverns.

b Geostock Sandia was the successful bidder on a project for JBS SWIFT to install a new injection well for the disposal of effluent from a beef processing facility dealing with 5,000 head of cattle per day.

HELIUM UNDERGROUND STORAGE GRONAU-EPE IN GERMANYOur subsidiary UGS GmbH completed in July a large Helium storage facility located in Gronau-Epe in the North Rhine-Westphalia region, 120km from Düsseldorf.

Pure Helium is stored underground at a depth of 1300m in a salt leached cavern. The most important challenge was to develop a new well completion design for helium storage.

This storage which is a World Premiere will allow Air Liquide, worldwide Helium market leader since its acquisition of Airgas, to respond better to its customers’ requirements for a reliable and predictable supply of Helium.

WorkoverShalapa (Mexico)

GEOSTOCK P 25

Contacts

FRANCEGEOSTOCK HOLDING SA2, rue des MartinetsCS 7003092569 RUEIL-MALMAISON CedexTel.: +33 1 47 08 73 00Fax: +33 1 47 08 73 73 www.geostockgroup.com---Jean-Michel NOÉCEOPascal BAYLOCQManaging Director

GEOSTOCK SAS2, rue des MartinetsCS 7003092569 RUEIL-MALMAISON CedexTel.: +33 1 47 08 73 00Fax: +33 1 47 08 73 73 www.geostockgroup.com---Pascal BAYLOCQPresident and CEO

GEOGREEN SA2, rue des MartinetsCS 7003092569 RUEIL-MALMAISON CedexTel.: +33 1 47 08 73 00Fax: +33 1 47 08 73 73 www.geogreen.eu---Gilles MUNIERCEO

BRAZILGEOSTOCK DO BRASIL Ltda.Avenida Rio Branco, n°20, 3° andar, centro, Cidade do RIO DE JANEIRORJ, CEP: 20090-000Tel.: +55 21 9 8039 9090---Jonathan ROYER-ADNOTCountry Manager

GERMANYUGS GmbHBerliner Chaussee 215749 MITTENWALDE Tel.: +49 337 64820Fax: +49 337 648280www.ugsnet.de ---Matthias HERTERRobert SCHELERSenior Managing Directors

MEXICO GEOSTOCK DE MÉXICO SA de CVAv. Paseo de la Reforma 300, piso 3Col. Juárez, Del. Cuauhtémoc06600 CIUDAD DE MÉXICO

SINGAPORE GEOSTOCK ASIA Pte Ltd.3 International Business Park#03-27 Nordic European CentreSINGAPORE 609927Tel.: +65 6896 0659Fax: +65 6563 6839---Jintang YANGeneral Manager

TURKEYGEOSTOCK ANKARAc/o OPALIT Tic. ve San. LtdŞti. Kırçiçeği S. 134 G.O.P ANKARATel.: +90.312. 446 12 77 (3 Hat) Fax: +90.312. 436 73 56---Haluk AYDEMIRBranch Manager

USAGEOSTOCK SANDIA, LLC8860 Fallbrook DriveHOUSTON, Texas 77064Tel.: +1 (346)314-4347Fax: +1 (832) 286-0477www.geostocksandia.com---Donald STEHLEPresident and CEO


Photos credits : Geostock picture library - Yves Chanoit - Franck Beloncle.


2, rue des Martinets - CS 7003092569 Rueil-Malmaison Cedex • FranceTel.: +33 1 47 08 73 00 • Fax: +33 1 47 08 73 73www.geostockgroup.com De

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