AGRIAGRI –– The first LNG Project to beThe first LNG Project to beAGRI AGRI The first LNG Project to be The first LNG Project to be developed in the Black Sea developed in the Black Sea

Converting ideas into realityConverting ideas into realityConverting ideas into realityConverting ideas into reality

AGRIAGRI bringsbrings togethertogether::

thethe keykey rolerole ofof AzerbaijanAzerbaijan asas aa majormajorhydrocarbonshydrocarbons producerproducer inin thethe CaspianCaspian regionregion;;yy pp pp ggGeorgia’sGeorgia’s importanceimportance asas anan energyenergy transittransit

countrycountry;;Romania’sRomania’s potentialpotential toto ensureensure aa directdirect accessaccess

towardstowards Europe,Europe, asas aa bridgebridge overover thethe BlackBlack SeaSea;;thethe addedadded valuevalue ofof Hungary,Hungary, forfor thethe westernwesterndimensiondimension developmentdevelopment ofof thethe projectproject..

Progress ReportProgress Report –– Partners’ political supportPartners’ political supportProgress Report Progress Report Partners political supportPartners political supportMemorandumMemorandum ofof UnderstandingUnderstanding forfor cooperationcooperation inin thethe fieldfield ofof LNGLNG andand itsitstransportation,transportation, amongamong Azerbaijan,Azerbaijan, GeorgiaGeorgia andand Romania,Romania, signedsigned onon AprilApril1313thth 20102010 inin BucharestBucharest1313 ,, 20102010,, inin BucharestBucharest..ProtocolProtocol regardingregarding thethe establishmentestablishment ofof AGRIAGRI projectproject developmentdevelopmentcompanycompany amongamong thethe MinistryMinistry ofof Economy,Economy, TradeTrade andand BusinessBusinessEnvironmentEnvironment ofof Romania,Romania, thethe MinistryMinistry ofof IndustryIndustry andand EnergyEnergy ofof thetheRepublicRepublic ofof AzerbaijanAzerbaijan andand thethe MinistryMinistry ofof EnergyEnergy ofof Georgia,Georgia, signedsigned ononRepublicRepublic ofof AzerbaijanAzerbaijan andand thethe MinistryMinistry ofof EnergyEnergy ofof Georgia,Georgia, signedsigned ononMayMay 1212thth,, 20102010,, inin TbilisiTbilisi..PoliticalPolitical DeclarationDeclaration ofof thethe PresidentsPresidents ofof Azerbaijan,Azerbaijan, Georgia,Georgia, RomaniaRomaniaandand thethe PrimePrime--ministerminister ofof Hungary,Hungary, signedsigned onon SeptemberSeptember 1414thth,, 20102010,, ininBakuBaku..ArticlesArticles ofof AssociationAssociation ofof AGRIAGRI LNGLNG Company,Company, betweenbetween companiescompaniesROMGAZ,ROMGAZ, GeorgianGeorgian OilOil andand GasGas CorporationCorporation (GOGC)(GOGC) andand StateState OilOilCompanyCompany ofof AzerbaijanAzerbaijan RepublicRepublic (SOCAR),(SOCAR), signedsigned inin Baku,Baku, September,September,20102010MemorandumMemorandum ofof UnderstandingUnderstanding betweenbetween companiescompanies ROMGAZ,ROMGAZ,GeorgianGeorgian OilOil andand GasGas CorporationCorporation (GOGC)(GOGC) andand StateState OilOil CompanyCompany ofofAzerbaijanAzerbaijan RepublicRepublic (SOCAR),(SOCAR), Baku,Baku, signedsigned inin Baku,Baku, September,September, 20102010

TheThe projectproject waswas wellwell receivedreceived atat EUEU andand USUS level,level, andand inin thethe samesame timetime severalseveralcountriescountries andand companiescompanies expressedexpressed theirtheir interestinterest forfor thisthis initiativeinitiative..

AGRI ROUTEAGRI ROUTE

PROJECT ROUTE

Pipeline transport through Azerbaijan and GeorgiaLiquefaction process in future LNG terminal in one ofGeorgia’s harborsCrossing the Black Sea by tankersRe-gasification process in future LNG terminal on theRomanian Black Sea CoastPumping the natural gas into Romania’s pipeline system fortransit and domestic consumptionDelivering the rest into Hungary‘s gas transport systemg g y g p ythrough Romania - Hungary Interconnector (Arad-Szeged)Pipeline transport through Hungary either for internal use,or to be transported farther in Europep p

PROJECT PARTNERSPROJECT PARTNERSPROJECT PARTNERSPROJECT PARTNERS

AGRI

SOCAR GOGC ROMGAZ MVMSOCARAZERBAIJAN

GOGCGEORGIA

ROMGAZROMANIA

MVMHUNGARY

Project capacity and estimated costs*Project capacity and estimated costs*Project capacity and estimated costsProject capacity and estimated costs1,2 1,2 billionbillion EuroEuross for a projected capacity of 2 for a projected capacity of 2 b.c.mb.c.m2 82 8 billionbillion EuroEuross for a projected capacity of 5for a projected capacity of 5 b c mb c m2,8 2,8 billionbillion EuroEuross for a projected capacity of 5 for a projected capacity of 5 b.c.mb.c.m4,5 4,5 billionsbillions EuroEuros for a projected capacity of 8 s for a projected capacity of 8 b.c.mb.c.m..

Project developmentProject developmentEstablishmentEstablishment ofof AGRIAGRI companycompany ((underunder thethe RomanianRomanian Law,Law,havinghaving thethe headquartersheadquarters inin BucharestBucharest)) –– COMPLETEDCOMPLETEDConductingConducting thethe feasibilityfeasibility studystudy-- ONGOINGONGOINGInvestmentInvestment decisiondecisionConstructionConstruction phasephase

** TheseThese datadata areare onlyonly estimative,estimative, thethe feasibilityfeasibility studystudy willwill givegive aa moremore clearclear estimationestimation ofof projectproject costscosts andand technicaltechnicaldetaileddetailed projectionsprojections..

ConstructionConstruction phasephase

LNG Delivery ChainLNG Delivery Chain

International Gas SupplyInternational Gas SupplyInternational Gas SupplyInternational Gas Supply

RegasificationRegasificationRegasificationRegasificationTankerTankerTankerTankerLiquefactionLiquefactionLiquefactionLiquefaction

Power PlantPower Plant

The main advantages of the AGRI The main advantages of the AGRI P jP jProjectProject

thethe flexibilityflexibility offeroffer byby usingusing thethe LNGLNG technologytechnology;;shortestshortest routeroute ofof AzerbaijaniAzerbaijani naturalnatural gasgas toto thetheshortestshortest routeroute ofof AzerbaijaniAzerbaijani naturalnatural gasgas toto thethe

EuropeanEuropean marketmarket;;the completion of Interconnector Romania the completion of Interconnector Romania --ppHungary (AradHungary (Arad--Szeged, Szeged, which which represents an represents an important segment in the infrastructure needed important segment in the infrastructure needed for AGRIfor AGRI););););the political support expressed by all four partner the political support expressed by all four partner countries.countries.

GAS TARGET MARKET FOR GAS TARGET MARKET FOR AGRI PROJECT AGRI PROJECT

Principal Target Markets: ROMANIA, Principal Target Markets: ROMANIA, REPUBLIC OF HUNGARYREPUBLIC OF HUNGARYREPUBLIC OF HUNGARYREPUBLIC OF HUNGARY

Secondary Target markets: BULGARIA, Secondary Target markets: BULGARIA, MOLDOVAMOLDOVA, SERBIA, UKRAINE, , SERBIA, UKRAINE, CROATIA, SLOVAKIACROATIA, SLOVAKIA

AGRI LNG PROJECT COMPANYAGRI LNG PROJECT COMPANYAGRI LNG PROJECT COMPANYAGRI LNG PROJECT COMPANY

TheThe ProjectProject CompanyCompany waswas registeredregistered atatthethe endend ofof JanuaryJanuary 20112011 TheThe headquartersheadquartersthethe endend ofof January,January, 20112011..TheThe headquartersheadquartersisis inin BucharestBucharest andand thethe companycompany willwilloperateoperate underunder thethe RomanianRomanian legislationlegislationoperateoperate underunder thethe RomanianRomanian legislationlegislation..

AGRI LNG Company AGRI LNG Company H d tH d tHeadquartersHeadquarters

Calea Plevnei no. 141, block 1, entrance A,Calea Plevnei no. 141, block 1, entrance A,Calea Plevnei no. 141, block 1, entrance A, Calea Plevnei no. 141, block 1, entrance A, apartment 1, district 6, apartment 1, district 6,

BucharestBucharestBucharestBucharest

OnOn December,December, 20112011,, thethe shareholdersshareholders ofof SCSC AGRIAGRIGG O CO C CO ACO A SS ("AG ")("AG ")LNGLNG PROJECTPROJECT COMPANYCOMPANY SRLSRL ("AGRI")("AGRI")

publishedpublished thethe RequestRequest forfor ProposalsProposals ("Request("Request forforProposals")Proposals") relatedrelated toto thethe achievementachievement ofof aa feasibilityfeasibilityProposals )Proposals ) relatedrelated toto thethe achievementachievement ofof aa feasibilityfeasibilitystudy,study, thethe scopescope ofof whichwhich isis toto assessassess thethe technical,technical,financialfinancial andand economicaleconomical viabilityviability ofof thethe energyenergy

titi j tj t dd A b ijA b ij G iG icooperationcooperation projectproject namednamed AzerbaijanAzerbaijan -- GeorgiaGeorgia --RomaniaRomania -- HungaryHungary InterconnectorInterconnector.. BasedBased onon thesethesedocumentsdocuments itit waswas organizedorganized thethe tendertender forfor thetheggselectionselection ofof thethe consultantconsultant whowho willwill elaborateelaborate thethefeasibilityfeasibility studystudy ofof thethe projectproject..

Companies who submitted offers are as follows :Companies who submitted offers are as follows :Companies who submitted offers are as follows :Companies who submitted offers are as follows :

- KEMA (Nederland ) BV; - SOFREGAZ (France) + ILF (Germany) as subcontractor; - FICHTNER (Germany);

PENSPEN (U K ); - PENSPEN (U.K.); - GL NOBLE DENTON (Germany) +Energy Contract Company Ltd (EEC) (U.K. )- SIEMENS (Germany); - RAMBOLL OIL&GAS (Denmark); - TECHNIP (Italy) + Poten&Partners (U.K.) + TRACTEBEL (Belgium) - SAIPEM (Italy);

KPMG (R i ) - KPMG (Romania); - GAS NATURAL FENOSA (Spain) ; - DELOITTE ( France ) + SNC LAVALIN (Romania).

The selected ConsultantThe selected ConsultantThe selected ConsultantThe selected Consultant

FurtherFurther toto thethe analysisanalysis andand evaluationevaluation ofof thethe offersoffersFurtherFurther toto thethe analysisanalysis andand evaluationevaluation ofof thethe offersofferssubmittedsubmitted byby thethe tenderers,tenderers, PENSPENPENSPEN CompanyCompany––UU..KK.. havehave beenbeen designateddesignated asas thethe SelectedSelectedggTendererTenderer..TheThe initialinitial deadlinedeadline forfor thethe elaborationelaboration ofof thetheTheThe initialinitial deadlinedeadline forfor thethe elaborationelaboration ofof thethefeasibilityfeasibility studystudy proposedproposed byby PENSPENPENSPEN:: 2020weeksweeks fromfrom thethe signingsigning datedate ofof thethe contractcontract withwithg gg gAGRIAGRI companycompany..EstimatedEstimated DateDate :: EndEnd ofof January,January, 20132013y,y,

Thank you for your attentionThank you for your attention