domestic investments - Türkiye Petrolleri AO

Transcription

Turkish Petroleum, with its
60 years deep-rooted history, today’s
successes, objectives and
re-construction activities, tags its
name for the future.
Work hand in hand with, not for yourself but for
your nation. This is the supreme labour.
contents
about us 08 organization chart 12 message from the president 14 board of directors 18
general management 20 indicators 24 domestic projects 28 district managements 40
distribution company 42 international projects 46 research center 66 occupational safety and
environmental protection 70 human resources 74 integrated transformation programme 76
finance 80 60th anniversary 97 contact 112
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WHERE DO WE OPERATE? Turkish Petroleum, with its approximately 5,000 employees,
was structured as having its headquarters in Ankara and also District Managements where
oil and natural gas exploration and production activities held intensely in Batman, Thrace
and Adıyaman. To ensure energy supply security of the country, we conduct our investments
and activities also in abroad especially in Caspian Region, North Africa and Middle East. We
carry out our exploration and production activities in Azerbaijan, Kazakhstan, Libya, Iraq,
Turkish Republic of Northern Cyprus (TRNC), Afghanistan, Russian Federation and
Kyrgyzstan.
WHAT DO WE DO? l Crude Oil and Natural Gas Exploration and Production Activities
l Unconventional Production Activities
l Natural Gas Storage and Marketing Activities
l Distribution and Marketing Activities l International Crude Oil and Natural Gas Projects
Partnerships
WHO ARE WE? Turkish Petroleum, one of the pioneer actors of the economy, was founded
in 1954 with the responsibility of being involved in hydrocarbon exploration, drilling, production,
refinery and marketing activities on behalf of the state. In its 60 years history, it has broken new
ground in oil sector.
Turkish Petroleum that brought 17 major institutions like PETKİM, TÜPRAŞ, PETROL OFİSİ to
our country, is still conducting domestic and international activities by involving in important
projects and consortia.
Turkish Petroleum Annual Report 2013
about us
our values
our purposes
Merit Is our principle of respect to labour,
To Develop •To become a pioneer actor in Eurasia and extend international portfolio, • To
discover our country’s hydrocarbon potential,• To step up in Aegean and Mediterranean
with activities following Black Sea, • To share the risk by constituting consortia with major oil
companies,
Effectiveness and Productivity Are our main purposes of investing to right business at right
time and success criteria of economic production and high production rate per employee,
Openness to Change and Innovativeness Are our being user of developing technology to
build tomorrow by learning from past and a way of using new production techniques effectively
and creating our vision according to world balance,
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Environmental Awareness Is our eagerness of bequeathing a clean environment to posterity,
Share of Responsibility, Knowledge, Experience and Authority Are our culture in which
knowledge gains meaning through experience and increases by sharing,
Credibility and Honesty Are our philosophies of developing the cooperation with our domestic
and foreign partners by reflecting the sense of trust to others.
Productivity • To monitor our operational productivity and to develop it,• Applying the
technological innovations gained through consortia,
Integration • To gravitate towards unconventional methods in oil exploration, • To take part
actively in Natural Gas Storage and Pipeline projects,
Employee Development • To transform our man power, our most valuable capital, to high
performance individuals so as to keep up with increasing competition, developing technology
and to increase our efficiency.
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As Turkish Petroleum,
we are eager to
bequeath a better
Turkey to posterity by
expending our energy
independency with
qualified man power,
rooted corporate culture
and self-assurance.
organization chart
Chairman and President (A)
Besim ŞİŞMAN
Member of the Board
Selami İNCEDALCI
Member of the Board
Cumali KINACI
Member of the Board
Murat ALTIPARMAK
Bureau of the Board of Directors
Secretariat to the President
Vice President
Ahmet ADANIR
Vice President
Mehmet Sait KİRAZOĞLU
Vice President
Serdal AZARSIZ
Auditing Committee
Ahmet ASLAN
Batman District Management
Gökhan AKIN
Adıyaman District Management
Savaş BÜTÜN
Department of Finance
Alper YILDIRIM
Department of Business
Development
M. Fehmi KARCI
Legal Advisory
Davut İYRAS
Department of Exploration
Erdal COŞKUN
Thrace District Management
Murat HACIHALİLOĞLU
Department of Machinery
Supply&Construction
Mehmet Talip BEKTAŞ
Department of Strategy
Development
Memet Ali KAYA
Department of Human
Resources
Şeref ASLAN
Department of Drilling
Recai GÜNGÖR
Department of Production
Ali TİREK
Department of Information
Technologies
M. Abuzer OKUTAN
Department of Occupational
Safety&Environmental
Protection
İrfan MEMİŞOĞLU
Department of
Research Center
Süleyman ÇALIK
Department of Well Completion
Enver ÇETİNKAYA
Department of
Support Services
Erkan İNCE
Turkish Petroleum Overseas Co.
(TPOC)
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Advisor to the President
Vice President
Murat ALTIPARMAK
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message from the
president
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Since the early 2000s, it is clear that in hydrocarbon exploration and production sector,
there has been a transformation from conventional methods to unconventional. It is vital
for exploration and production companies to analyze wisely this transformation period
which is also a fierce competition environment and they have to determine proactive
business development strategies in order to position themselves accurately.
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Turkish Petroleum, operates in oil and gas sector that is quite strategic, works hard to
diversify energy sources and to ensure energy supply security of our country. Turkish
Petroleum pulls it weight in order to discharge the responsibility of being a pioneer
energy company and being active in the world in accordance with our country’s benefits.
To ensure the required energy for taking ever-growing Turkey to one step further, Turkish
Petroleum boosts its investments year by year.
In recent years, we accelerated our exploration and production activities with
unconventional methods to reveal the shale gas potential of our country and to contribute
it to the national economy. We maintain unconventional activities by ourselves or by
partnerships in basins like Thrace and Southeast Anatolia which have high potential.
We believe that, by doing so, energy bill of our country will decrease and it surely will
contribute to energy independency.
Putting an end to the energy dependence on foreign sources will ensure that the
development momentum will be sustainable which Turkey has gained in recent years.
Yet, our domestic production and exploration activities demonstrated that, it will be
difficult for us to meet the increasing energy demand by conventional methods in short
period. We are creating Turkish Petroleum, that has more exploration activities on
offshore and onshore, that operates with conventional and unconventional methods all
around the world by itself or via partnerships, that increases it reserves, that evaluates
business development opportunities by keeping abreast of all the developments in the
sector.
Message from the President
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We also concentrated on deep water exploration in recent years in order to meet the oil
and natural gas demand of our country. Data acquired from Black Sea proved that, there
is an oil system in eastern and natural gas system in western Black Sea. To convert this
high potential into reserve and production, we will continue our exploration activities
both with our own resources and with foreign partnerships. We intend to conduct more
efficient and fertile activities in our seas following the same route in Mediterranean
as we accomplished in Black Sea. Moreover, we will contribute significantly for the
transportation of oil and natural gas produced in this region to the international markets.
Considering the fact that we couldn’t reach the reserve and production increase that we
desire even if we boosted our investments in the last decade, we believed that we need
a serious strategy change. As a step for this, we purchased a field in Russia and initiated
our activities. We surely will be aggressive in international area in the new period. Our
fundamental strategy is, to position ourselves according to the ever-changing business
environment and sectoral conditions, to consociate with foreign companies and to
spread to new regions. From now on we will not confine ourselves with the present. By
pushing the limits of our budget, we will sign for new field purchasing. Thereby, we will
increase total reserve, production and profitability.
In Shah Deniz Field, providing Caspian Sea hydrocarbon potential’s transportation to
world market, we purchased the share of TOTAL (10%) and increased our share to 19%,
therefore have the second highest share after BP in the consortium. Turkish Petroleum’s
income mostly depends on Shah Deniz, and it is a very significant project that enables
us to be an active player on Caspian Region. With our state’s great support, we intend
to maintain and strengthen our presence in current countries that we have business.
Turkish Petroleum’s target in this new period is to launch new projects with domestic/
foreign consortia and to spread to new regions by getting the support of our state and
giving more importance to business development activities.
I would gladly like to express that we have the honor of being the host for World
Petroleum Council in 2017 in Istanbul. This council has 65 member countries meeting
the 95% oil and natural gas demand of the world and it hosts more than 5,000 delegates,
50 Presidents/Ministers, 500 CEOs and 10,000 participants. World Petroleum Council
brings us the advantage of transferring know-how and technology, sharing information
and experience and mutual investments in the market in which there are such active
and multinational companies.
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As Turkish Petroleum, we will render our Corporation to one of the pioneer player in the
world in 100th anniversary of our Republic by bringing the projects into effect that will
abolish our energy dependency on foreign sources. For this purpose, we spread the seeds
for the activities that will make Turkish Petroleum as one of the 10 Turkish companies
in world’s leading brands in 2023. We conduct branding activities meticulously that will
transform our corporation to one of the most loved and well regarded companies in
national and international public opinion. To create a perception of Turkish Petroleum as
reformist, technological, human oriented, environmental friendly, employee satisfaction
oriented, open to change and innovation, we set off on an onerous journey 60 years
ago and we are quite sure that we will seize our objectives with the impulse of our
employees and great effort.
By optimizing the geopolitical advantage of our country, we pull out all the stops to
provide the energy supply security and to assure stability and we will forever. To become
a powerful Turkish Petroleum befitting Turkey which set off with the objective to become
one of the greatest economy in the world, our best motivation sources are our passion
to our country, our faith in our employees, our determination and our belief in success.
Besim ŞİŞMAN
We do our best for our national
supply security. In this context, we
endeavor to reveal oil and natural
gas sources, considered as national
wealth, and contribute it to the
national economy to provide the best
added-value.
Board of Directors
He graduated from Istanbul Technical
University Petroleum Engineering in 1988.
He was assigned as a Member of the
Board and Vice President in 2009. Since
28 February 2013, He has been Acting
Chairman and President.
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Selami İncedalcı
Member of the Board
He graduated from Ankara University
Geology Engineering in 1981. He studied
his master’s degree in the same branch in
1993.
Since 23 January 2013, He has been a
Member of the Board of TP.
Cumali Kınacı
Murat Altıparmak
University
Civil
Engineering.
He
studied master’s degree in Istanbul
Technical University Institute of Science,
Environmental Engineering in 1982 and
doctorate in the same program in 1987.
University Petroleum Engineering in 1979.
Member of the Board
Vice President and
Member of the Board
Since 2003, He has been the Vice
President of TP and since 2010 He has
been a Member of the Board.
Since 2003, He has been a Member of
the Board of TP.
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Besim Şişman
General Management
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Besim Şişman
Murat Altıparmak
Ahmet Adanır
Mehmet Sait Kirazoğlu
Serdal Azarsız
Vice President and
Member of the Board
Vice President
Vice President
Vice President
He graduated from Istanbul
Technical University Petroleum
Engineering in 1988.
Technical University Petroleum
Engineering in 1979.
Technical University Faculty of
Mines in 1980.
He was assigned as a Member of
the Board and Vice President in
2009. Since 28 February 2013,
He has been Acting Chairman and
President.
President of TP and since 2010
He has been a Member of the
Board.
President of TP.
He graduated from Ankara
University Faculty of Political
Science in 1998. He studied
master’s
degree
of
Public
Administration
in
Syracuse
University (Maxwell School) in
USA in 2011.
He graduated from Middle East
Technical University Engineering
Faculty Petroleum Engineering in
1985.
Since 29 July 2013, He has been
the Vice President of TP.
President of TP.
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the deeper,
the stronger
we are
With the labour and the path we passed,
we sign on significant activities…
Indicators
2013
2012
3,479,710
3,527,909
454,753
1,139,680
total current assets
2,142,200
2,832,123
total fixed assets
4,976,560
4,504,740
shareholder’s equity
5,524,698
5,591,168
short-term foreign liabilities
753,211
887,627
long-term foreign liabilities
840,851
858,068
current ratio (%)
2.84
3.19
shareholder’s equity/total assets
0.78
0.87
gross sales revenue/ net sales revenue
0.49
0.45
sales revenues
net profit
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domestic investments
million dollars
2010
2011
2012
389
579
502
396
2013
international investments
2010
million dollars
2011
2012
350
370
487
714
activities
geology
seismic
2D
3D
drilling
production
2013
2012
(km²)
5,687
10,220
onshore (km)
1,233
585
offshore (km)
12,533
-
onshore (km²)
413
835
offshore (km²)
3,583
539
onshore (thousand m)
197.1
172.6
offshore (thousand m)
-
3.6
14.1
13.6
international (million barrels oe) 12.7
10.9
domestic (million barrels oe)
25
2013
thousand dollars
We know the value of the
effort spent in sixty years and
we advance successfully with
the signs of the past.
domestic projects
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Main purpose of Turkish Petroleum, while producing significant projects in and abroad for 60
years with its strong staff, is the energy independence of our country.
Turkish Petroleum operates in many fields range from crude oil and natural gas exploration to
production, from storage to transportation via pipelines and renewable energy sources.
With its developing economy, our country is in need of energy and it has the highest energy
demand rate in OECD countries. Accordingly, in parallel to its important investments for the
energy supply security of Turkey in the last decade, it increased its activities and also involved
in significant and major activities to reveal new oil sources of our country.
Since the beginning of 2000s, our Corporate has given importance to hydrocarbon exploration
and production on offshore fields as well as on onshore fields. In accordance with this strategy,
it has realized an intense seismic program by its own and with foreign partners in the context of
exploration projects in our seas, especially in the Black Sea and in the Mediterranean. 97,500
km 2D and 20,000 km2 3D seismic data acquisition was performed between 2003-2013.
In 2013, 12,533 km 2D and 3,583 km2 3D seismic program was realized in our offshore fields.
It was completed by Barbaros Hayreddin Paşa seismic ship. In this context, 9,824 km 2D and
1,542 km2 3D seismic activities in the Black Sea and 2,709 km 2D and 2,041 km2 3D seismic
activities in Mediterranean were completed.
Domestic Projects
On the other hand, a “Joint Operating Agreement”
was signed between Turkish Petroleum and Shell for
3 exploration fields in Antalya offshore.
We also continue our farm-out activities covering
Mersin and İskenderun Bays.
Our activities for production via unconventional
methods like shale gas continue with Shell, which
is a first in country. We have conducted important
activities to reveal the unconventional source
potential in Thrace and Southeast Anatolia Region.
“Seismic data acquisition” has been carried out
by our Corporation with three seismic crews and a
seismic ship. Non-seismic data acquisition surveys
are carried out by one gravity - magnetic acquisition
crew.
In 2013, 28 13/30 man/month field geology activities
were held in 16 different oil exploration area. In total
5,687 km2 area was geologically evaluated.
We bent on maintaining our drilling activities without
any cease both at home and abroad. In 2013, we
performed 197,123 m. drilling in 115 wells. With our
highly experienced staff, the wells are drilled in a
safe, secure and high quality manner with low cost
by applying the everchanging technology.
Activities in this context;
• Drilling Experiences in 3,022 wells,
• Deep Well Experience,
• Directional and Horizontal Wells,
• Multi-Lateral Well Drillings,
• Extended Reach Drilling,
• Unconventional Drillings.
With these activities, we discovered 62 oil and 6
natural gas wells.
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We signed many
joint exploration
and production
agreements with
international
oil companies
for our oil and
natural gas
exploration
studies.
In this context,
a) Onshore Fields
TP-NVT PERENCO; Within the framework of TP-NVT Perenco joint venture agreement,
geological and geophysical evaluations continued in XI. Oil Field. Production from
Miyadin-2 and G.Kırtepe-14 wells went on. Under Perenco’s operatorship, geological and
geophysical evaluations continued in X. field. Production from Kedil-1 well went on. In the
context of the partnership, production from Kastel, Karaali, Yalankoz and G.Kırtepe Fields
went on likewise.
TP-TIWAY OIL; Within the framework of Cendere Field Development Project the drilling of
Cendere-24 well was completed. The drilling of Cendere-25 well is planned to be initiated
in 2014.
TP-AMITY OIL; Within the framework of Thrace Basin Joint Operating Agreement between
TP-Amity Oil, natural gas and condensate production continue from Göçerler, Adatepe,
D.Adatepe, Reisdere, Eskitaşlı, Dikilitaş, Paşaköy, Kumdere, Yenibağ and Pelit Fields.
Exploration activities continue in exploration fields of the partnership.
TP-SHELL; Within the context of farm-in and “Joint Operating Agreement” between
TP and Shell (Mediterranean), following the completion of geological, geophysical and
environmental assessment activities, Konacık-1 well’s drilling was conducted.
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Domestic Projects
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b) Offshore Fields
TP-EXXONMOBIL; “Joint Exploration and Operating Agreement” signed on 17 August
2006 for Sinop-Ayancık-Çarşamba subblocks. Exxonmobil became a partner to this
agreement on 11 January 2010. This agreement was withdrawn after “The Settlement
Protocol” signed between TP-Petrobras on 27 May 2013.
TP-SHELL BATI TOROS PROJECT; Within the context of the farm-in and Joint Operating
Agreement between TP and Shell, the process of the 2D seismic data was completed. Well
location feasibility studies initiated. Farm-out studies to find a partner to the project was
held by Shell in December 2013. In this context, with a revision, decision for obligation well
drilling was postponed for six months following February 2014.
TP-SHELL KARADENİZ; Within the context of the
Black Sea farm-in and Joint Operating Agreement
taken effect on 21 May 2013 for AR/TPO/3920
block, 1,500 km2 3D seismic data was acquired by
Shell in the block as planned. Istranca technical
study was completed by Shell and shared with our
Corporation and other technical evaluation studies
are still going on.
TP-TRNC; Interpretation studies covering 12,000
dots on TRNC onshore fields, process of 690 km
2D seismic data was completed and interpretation
initiated.
TP-PETROL OFİSİ E&P-TIWAY OIL-FOINAVON; Production from Ayazlı, D.Ayazlı,
Akkaya and Akçakoca Fields in joint licenses continue. Following the TCM and OCM held
on 30 May 2013, perforation was made in Akçakoca-3 well. Revision tender studies for
booster compressor in Çayağzı continued.
Domestic Projects
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In 2013, TP produced 12,3 million barrels of crude oil domestically. 74% of our total oil
production is from Batman Region, 25% from Adıyaman Region and 1% from Thrace
Region.
The total number of production wells reached to 1,112 by the end of 2013 with addition of
68 new and 14 re-completed wells and abandonment of 17 wells.
Reservoir improvement and production activities carried on in 2013. Various reservoir
activities, which requires special technical implementations, started in order to avoid
decreasing production trend within the fields includes heavy crude oil.
In 2013, our total natural gas production was 307.6 million sm³, 95% of which is from
Thrace Region, 4% from Batman Region and 1% from Adıyaman Region. The oil equivalent
of natural gas output is 1,8 million barrels.
In the context of Western Black Sea Joint Exploration and Development Project under TP
(operator), Petrol Ofisi Exploration and Production Inc., Tiway Turkey Ltd. and Foinavon Energy
Inc. Partnership, natural gas production is going on from 3 sea production platforms.
Since April 2007 when the production started from sea platforms, approximately 985 million m³
(TP share 502 million m³) natural gas has been produced and the average daily production is
280,000 m³.
Double-deck Akçakoca Platform, put into use with 2.1 million sm3 daily production capacity and
an average of 360,000 sm3 natural gas per day is being produced from production levels.
Natural gas produced from Akçakoca, Ayazlı and Akkaya fields in Western Black Sea is being
processed in Çayağzı Process Facilities. Approximately 1 billion sm3 natural gas has been
produced cumulatively.
Turkish Petroleum produced 14,1 million
petroleum equivalent hydrocarbon
domestically in 2013.
Crude Oil and Natural Gas Production
Domestic Projects
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488 thousand barrels of crude oil produced from 47 exploration and appraisal wells in the
context of production enhancement projects in 2013. 90,253 barrels of crude oil produced
from 12 re-completed wells, 5 of which in Raman, 1 in B. Raman, 1 in G. Kayaköy, 2 in
Beykan, 2 in Kurkan and 1 in Yananköy field.
Polymer gel injection executed in 10 wells of Raman field in order to avoid water inundation.
1 well is re-completed and 38 thousand barrels of crude oil produced from aforesaid wells
till the end of 2013 as a result of polymer gel injection.
In 2013, 129 million barrels of produced water was injected into safe zones in different
fields by 106 waste water injection wells.
9 new natural gas production wells, 1 in Kavakdere, 1 in Değirmenköy, 2 in Karatepe, 1 in
Alacaoğlu, 1 in Müsellim, 1 in Tulumba, 1 in B. Pelit and 1 in Ceylanköy, were put into use
in 2013 in the context of natural gas production enhancement Project.
2.6 million barrels of crude oil produced within the year by Batı Raman Crude Oil
Production Enhancement Project. Water injection carried on, on the purpose of increasing
the effectiveness of CO2 and 106 thousand of water and gas alternately injected to 4
different wells.
Garzan-B and Garzan-C fields are among the most productive fields of Turkey, with 300
million barrels of crude oil reservoir.
A total 1,8 million barrels of water injected to 10 injection wells of Garzan-B field in 2013.
Currently, 4,800 barrels of water per day is being injected and 505 barrels of crude oil per
day is being produced from 21 wells.
820 thousand barrels of water injected to 4 injection wells in Garzan-C field in 2013. 2,240
barrels of water per day is being injected and 350 barrels of crude oil per day is being
produced from 12 wells.
By the end of 2013, cumulative gas injection reached to 169 million m³ and cumulative
water injection reached to 831,383 barrels in Batı Kozluca Field Water Alternating Gas
Injection (WAG) Project.
Production Enhancement Projects
Domestic Projects
Kuzey Marmara ve Değirmenköy Fields Underground
Natural Gas Storage Project
In terms of energy planning of countries, having a
natural gas storage facility is crucial for energy strategy
in order to balance the supply-demand equilibrium in
case of a possible supply limitation caused by pipeline
maintenance or other reasons. By taking the necessity
of a natural gas storage facility into consideration for the
wealth and development of our country, Turkish Petroleum
contributed the first and the only natural gas storage
facility “Kuzey Marmara and Değirmenköy Underground
Natural Gas Storage Facilities” to the economy in 2007
with the capacity of 1.6 billion sm3. It is a first for Turkey
and additional facility productions are now brought to
Turkey’s agenda in order to increase the supply security.
The project was planned in 3 phases and had a 1.6 billion
sm³ of capacity and this was increased to 2.66 billion sm³
in 2010.
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With the completion
of Değirmenköy and
Surroundings Natural
Gas Storage Project
(Phase II) and Kuzey
Marmara Natural Gas
Project (Phase III),
it is planned that,
total capacity will
reach to 4.29 billion
m³, daily withdrawal
capacity will reach
to 75 million m³
and injection capacity
will reach to
40 million sm³/day.
district managements
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Our District Managements, while
conducting their activities, have a great
role in the development of the social
and economic life of the regions.
Our Corporation is structured as
Batman, Thrace and Adıyaman District
Managements.
In Batman District Management exploration, drilling and production activities of crude
oil and natural gas, which are vital inputs of national economy, have been carried out
continuously since 1954.
The first oil discovery in Turkey was realized at Raman Field, in 1945 by MTA and the
first production in economical means was realized in Raman-8 well in 1948. After the
foundation of TP in 1954, Batman District Management played a leading role in the
exploration, drilling, production and refinery activities of the country.
TP initiated its exploration and drilling activities in Thrace Basin with Uluman-1 well, in
1960. As a result of the operations performed in Thrace District, the first economical
natural gas discovery was made in 1970 at the Hamitabat and Kumrular fields, and the
first oil discovery was realized in K. Osmancık and Deveçatak wells which were drilled in
1973-1974.
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A total amount of 294.3 million sm3 natural gas and 86.1 thousand barrels of crude oil
produced while 5 exploration and appraisal wells completed as natural gas wells in 2013.
In 1954, after the adoption of the Petroleum Law No. 6326 foreign companies came to
Turkey for oil exploration and in 1958, the first petroleum exploration of Adıyaman Region
was made by California Asiatic Oil and Texaco Overseas Petroleum at Kahta-1 well in
Adıyaman District.
A total amount of 2.2 million sm3 natural gas and 3.1 million barrels of crude oil produced
while 12 exploration and appraisal wells completed as oil gas wells in 2013.
A total amount of 11.1 million sm3 natural gas and 9.11 million barrels of crude oil produced
while 11 exploration and appraisal wells completed as oil wells in 2013.
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distribution company
With “CrediTP” card, started in 2010, 3% instant discount is being made in
fuel purchasing. It gives the opportunity of instant discount instead of score
based discount.
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Vehicle fuel system, one of the other applications of TPPD, was put into use as
dealer-based vehicle identification system throughout the country. Its trading
volume increases by gaining corporate account.
TPPD was founded by TPIC on 16 May 2006. It was devolved to TPOC from TPIC by
cabinet decree in February 2013. Since 16 July 2009, it has carried on as TP Petroleum
Distribution Inc. Its purposes are; to expand its dealer network in every region, to ensure
the regulation in the sector and to work for public welfare. Since its foundation, it has a
balancing role in the sector. By participating in large scale tenders, it creates rivalry and
thus contributes to consumers. TPPD, founded by public capital 100%, cares most about
the quality and reliance principle.
TPPD, providing a reliable, principled service and state assurance to its customers,
expanded its dealers to 231 by the end of 2013. TPPD is among the 6 companies with
largest trading volume in fuel sales. According to 2013 records, it’s the 6th in 73 registered
distribution companies with its 3.7% market share.
TPPD, providing reliable, fertile, clean product and service to its customers, contribute to
our country’s growth and development process. In this context, with its Dörtyol (Hatay),
Kırıkkale and Kocaeli (İzmit/Körfez) fuel terminals, it provides world class products to its
dealers and consumers.
TPPD, ever-growing in the fuel sector, also appeared in mineral oil sector in
2013. TP mineral oils, presented in Petroleum 2013 fair, attracted significant
attention with its product range and innovative design.
TPPD owns all quality certificates by accomplishing all the requirements of
ISO 9001, ISO 14001 and OHSAS 18001 in order to increase the quality and
productivity. TPPD, assisting its employees in line with these standards, is
sensitive to safety, environment and health. Nourished by these values, it
seeks for development by its motto “capital belongs to state, gain belongs to
public”.
According to 2013 records, it’s the 6th
in 73 registered distribution companies
with its 3.7% market share.
TP Petroleum Distribution Inc. (TPPD)
We open our doors wide to
become a worldwide company
and walk towards to reach our
goals…
international projects
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ACG
SHAH DENIZ
BTC
SCP
ALOV
KAZAKHSTAN
KAZAK TÜRKMUNAY
IRAQ
LIBYA
BLOK 147
KYRGYZSTAN
MAİLU-SU VE
EAST İZBASKENT
MANSURIA
BADRA
MISSAN
SIBA
AFGHANISTAN
MEZAR-I SERIF
SANDIKLI
47
To achieve our strategic targets, it is necessary for us to add new reserves and turn
them into production immediately. For this reason, international activities have become
gradually more important. Being aware of the strategic importance of energy, for ensuring
Turkey’s security of supply, we have set up the roadmaps and action plans for achieving
its objectives in the years ahead.
RUSSIA
BAYTUGAN
We have become an important actor in the region with the international exploration,
production and development projects since 1990s. Within the context of these activities,
most of our international production is generated from Azeri-Chirag-Guneshli Project in
Azerbaijan.
BTC Main Export Crude Oil Pipeline started its operations in 2006. Thanks to this, the oil
produced in Azerbaijan is sold to the world markets by TP. Following the completion of
SCP Gas Pipeline in 2006 and the proceeding operations, our first international natural
gas production as a shareholder of Shah Deniz Project started in March 2007.
AZERBAIJAN
In the context of territory and country priorities resulted by the global evaluation studies we
have conducted in recent years, as Turkish Petroleum, we not only focus on the countries
in our nearby geography but also attach importance to increase our reserves. Our business
development activities continue in Caspian Region, Russian Federation, Middle East,
Africa and South America. We believe that our activities have a great importance to secure
our energy supply.
International Projects
Kazakhstan
48
As TP, we conduct our activities in Kazakhstan through a joint venture company,
KazakhTurkMunai (KTM) Ltd. in which we hold 49% while KazMunaiGas holds 51% of
the shares. KTM Ltd. has one concession license in Aktau Region and two in Aktubinsk
Region of the Western Kazakhstan.
The exploration and production activities have been proceeding in 7 fields in line with
these three licenses. In 2013, average production of KTM Ltd. was 1,927 barrels/day in
Aktau Region and 2,864 barrels/day in Aktubinsk Region with a total number of 4,791
barrels/day.
In 2013, the annual crude oil
production of TP is 945 thousand
barrels while the cumulative crude oil
production is 19 million barrels.
Azerbaijan
It is estimated that, Caspian Region holds 4%
of the world oil reserves and 6% of the gas
reserves. Because of the cultural and historical
ties, Caspian Region has a special importance
and value for Turkey.
49
As a result of our country’s being a potential
market, having the significant role in transportation
of energy resources to western markets and
becoming an energy hub, Turkey’s strategic
and geopolitical power in the area will increase
accordingly.
We are currently a participant of three exploration,
development and production projects which are
Azeri-Chirag-Guneshli (6.75%), Shah Deniz (19%)
and Alov (10%) Projects in Azerbaijan.
Furthermore, we have a share of 6.53% in the BTC
Co. which is carrying out all activities of BakuTbilisi-Ceyhan Main Export Crude Oil Pipeline
Project and 19% share in South Caucasus Natural
Gas Pipeline Project which transports Shah Deniz
gas to Turkish-Georgian border.
Shah Deniz Project
The project has been signed in 1997 and after the completion of the Minimum Obligatory Work
Program of the Exploration and the Extended Exploration Periods in 2001, commerciality of
natural gas and condensate has been declared.
Azeri-Chirag-Guneshli (ACG) Project
“The Joint Development and Production Sharing Agreement” for ACG Project was signed
in Baku among the State Oil Company of the Azerbaijan Republic (SOCAR) and the
consortium constituted by the foreign companies in 1994.
Azeri-Chirag-Guneshli structure is located in the south of Caspian Sea and about 100
km east of Baku. The license area of Azeri-Chirag-Guneshli is almost 432 km² with water
depth varying between 100 and 300 m.
TP’s share is increased to 19% after
the agreement realized on 26 May 2014
related with purchasing TOTAL’s 10% of
share in Shah Deniz and SCP Projects.
51
The Shah Deniz Structure is located in the offshore South Caspian Sea, 70 km southeast of
Baku and 70 km southwest of the Azeri- Chirag-Guneshli Field. The concession has area
coverage of approximately 860 km² with water depth varying between 150 and 600 m.
Within the scope of the project, 450 billion m³ natural gas and 640 million barrel condensate
reserves, the produced gas has been exported to Turkey, Azerbaijan and Georgia.
ACG Project has been developed in phases. The production has started from Chirag Field
(the early oil project) in November 1997. Chirag Oil Project (COP) which aims to produce oil
from undepleted area between the existing platforms in Chirag and Deep Water Guneshli
is on the execution phase and production started in January 2014.
By the end of 2013, the cumulative produced natural gas is 47.96 billion m³ (TP share is 3.43
billion m³) and produced condensate is 99.5 million barrels (TP share is 7.12 million barrels).
For 2013, the amount of them was 9.7 billion m³ (TP share is 662 million m³) and 19.6 million
barrels (TP share is 1.3 million barrels), respectively.
The oil reserves of the project is estimated to be 4.65 billion barrels to the end of 2024
and around 2.39 billion barrels of crude oil has been produced from the area by the end
of 2013. 2013 production of the project is 239 million barrels. Our share from the area
was 5.8 million barrels in 2013 while the number is 94.8 million barrels in total from the
beginning of the project.
The expected annual plateau production in Phase-1 is specified as 8.6 billion m³ and 6.6
billion m³ of this amount is segregated to Turkey for 15-years period.
For Phase-2, it is estimated that construction decision will be taken in 2013 and first gas
delivery will be realized in late 2018.
50
52
53
Alov Project
Pipeline Projects of TP Contributing to the Energy Corridor
Turkish Petroleum Overseas Company (TPOC), a wholly
owned subsidiary of TP, joined the Project after signing
EDPSA, by an “Agreement on Participating Interest to be
Vested” on 29 July 1998. As of 21 December 2011 TPOC
was assigned as the operator of the Alov Exploration
Project.
Turkey resides at the intersection of Middle East and Caspian Regions having the
major portion of the world oil reserves. The basis of the energy corridor to carry the
energy resources to the world market was initiated by the constructions of BTC
and SCP Pipeline Projects.
In this regard, our Corporate is taking its own part in meeting the natural gas and
oil demand of our country and we also continue our activities of increasing our
efficiency and control through the east-west energy corridor.
Alov Exploration Project covers three different prospective
structures named Araz-Alov-Sharg in the Middle of the
Southern Caspian Sea. In this Project which has threeyear exploration period, 1,400 km² 3D seismic surveys
completed. The first exploration well drilling is waiting for
the legal status determination of Caspian Sea.
Following the determination of the Black Sea hydrocarbon potential, it will be
transported through our country to the markets in safe way on time.
Afghanistan
Within the scope of the Project, an approximately 1,768 km long pipeline, with a
nominal capacity of 50 million tons/year, starting from Sangachal Terminal close to
Baku-Azerbaijan passing by Tbilisi-Georgia and reaching to the Mediterranean Sea at
Ceyhan-Turkey, has been constructed and operating since 3 June 2006. By the end of
year 2013, 1,836 million barrels of crude oil carried by 2,390 vessels.
TP Afghanistan Ltd. was founded on 30 May 2013 for the purpose of carrying out oil activities and
trade according to laws and regulations of foreign state for oil and gas Exploration-Production
Project in Afghanistan.
Currently, transportation of a large portion of ACG oil, all of Shah Deniz condensate and
some Kazakh Tengiz and Turkmenian oil is proceeding and 250.3 million barrels of oil
was loaded to 329 tankers from Haydar Aliyev Terminal in 2013.
South Caucasus Natural Gas Pipeline (SCP) Project
Within the scope of SCP Project, Shah Deniz natural gas is being transported to GeorgianTurkish border. The SCP passing through the same corridor with BTC is about 690 km
in length. After commencement of the construction of the pipeline physically in 2004,
construction activities have been completed. In line with the production activities of Shah
Deniz, continuous gas transportation was started on 7 March 2007.
The pipeline has a transportation capacity of 9 billion m³ of natural gas to Turkish border
with one compressor station in Sangachal Terminal according to the terms of AGSCBOTAŞ Sales and Purchasing Agreement (SPA). However, it is possible to expand this
capacity up to 24 billion m³ annually by adding new compressor stations and/or looping.
In 2013, totally 9.7 billion m³ natural gas was transported and 4.1 billion m³ of this amount
was sold to BOTAŞ. The main target of the project is to transport the gas produced from
Caspian Region to Europa via Turkey in the future.
In this respect, Mezar-ı Şerif (TP is operator) and Sandıklı (Dragon Oil is operator) licence tenders
were won by consortium of TP (40%), Dragon Oil (40%) and Gazanfar (20%).
Oil & Gas Exploration, Production and
Sharing Agreement was signed on
8 October 2013.
55
Libya
TP Libya Ltd. was founded on 30 May 2013
for the purpose of carrying out oil activities
and trade according to laws and regulations of
foreign state for Libya Oil and Gas ExplorationProduction Project .
Within the scope of Block 147 Project, forced
major announcement was realized in the block
because of negative security conditions in the
region.
54
Baku-Tbilisi-Ceyhan Main Export Crude Oil Pipeline (BTC) Project
Iraq
Badra Project
Mansuria Project
TP Badra Ltd. was founded on 15 March 2011 for the purpose of carrying out oil activities
and trade according to laws and regulations of foreign state for performing Iraq Badra Oil
Field Oil Production and Development Service Agreement.
56
The consortium including TP as the operator with
50% share, KEC and KOGAS as partners with
respectively 30% and 20% share won the Mansuria
Gas Field on October 2010 in the third round. Up to
now, 3D seismic studies were completed and detailed
interpretation and modeling studies are ongoing.
Siba Project
TP Siba Ltd. was founded on 30 May 2013 for the
purpose of carrying out oil activities and trade
according to laws and regulations of foreign state for
Iraq Siba Oil and Gas Exploration-Production Project.
The consortium, in which the operator, Kuwait Energy
Company (KEC), holds 60% and TP holds 40% of
shares, won the bid in the third round. Project duration
is 20+5 years following the effective date. According
to the contract, it is planned to start production with
25 million scf/day in 2015 and 100 million scf/day in
2017.
In 2013, environmental impact evaluation, mine
extermination, seismic data collection studies and
well completion studies were realized in Siba-1
well. In addition, completion of seismic process &
interpretation and drilling of 7 wells are planned for
2014.
The consortium including Gazprom Operator (40%), Kogas (30%), Petronas (20%) and
TP (10%) has maintained its activities since 18 February 2010. Within the scope of work
programme of 2014, drilling and surface facility construction studies are ongoing.
Missan Project
TP Missan Ltd. was founded on 10 August 2010 for the purpose of carrying out oil activities
and trade according to laws and regulations of foreign state for Iraq Missan Development
and Production Project.
57
TP became the partner with Chinese company CNOOC on 17 May 2010 in Missan
Development-Production Project. According to the agreement, CNOOC is the operator
with its 85% of investment share and TP with its 15% meeting the projects expenses. The
projects income shares are CNOOC 63.75%, TP 11.25% and OEC 25%.
In the project, necessary studies are ongoing to increase 88 thousand barrels/day of
current production to 450 thousand barrels/day until the end of 2016 according to the
contractual liability.
Since the effective date of the project, drilling of 30 wells have been finished, well completion
of 25 wells have been realized and have put into production. Seismic data acquisitions
were finished, process and interpretation studies of these data will be completed in 2014.
TP Mansuria Ltd. was founded on 30 May 2013 for
the purpose of carrying out oil activities and trade
according to laws and regulations of foreign state for
Iraq Mansuria Oil and Gas Exploration-Production
Project.
Russia
Kyrgyzstan
TP Europe Ltd. was founded on 10 August 2010 for the purpose of carrying out oil activities
and trade according to laws and regulations of foreign state in international projects.
TP Kyrgyzstan Ltd. was founded on 30 May 2013 for the purpose of carrying out oil activities
and trade according to laws and regulations of foreign state for Kyrgyzstan projects.
In Russia, within the context of Baytuhan
Project, the process of share purchasing
was completed in April 2014 with the
signing of Share Purchase Agreement (SPA)
and Shareholders’ Agreement (SHA) on
10 October 2013 by both sides, for selling
49% share of Baitex LLC company belongs
to Hungarian company MOL and the
production and field development activities
are being continued.
Within the scope of an agreement planned with a residentiary company, consultation is
realized to provide legal donation and service.
59
58
Turkish Petroleum Overseas Company Ltd. (TPOC)
60
TPOC Ltd. was established in Jersey, Channel Islands in 1996 as an affiliate of TP to carry
out all activities related with technical and commercial oil and gas trade.
61
TPOC Ltd. currently participates in Shah Deniz (19%) and Alov (10%) Projects in Azerbaijan.
TPOC is an operator with 100% share in NCBlock-147/3-4 (Murzuq Basin) in Libya. In
addition, as an operator 50% of share in Mansuria Field, 10% in Badra Field, 11.25% in
Missan Field and 40% in Siba Field. TPOC Ltd. has 2 branch offices in Tripoli-Libya and
Baghdad-Iraq and also a representative office in Baku-Azerbaijan.
KTM
TPBTC Ltd.
TPOC Ltd.
TPSCP Ltd.
TP Oilfield Services Company Ltd. (TPOFS)
In accordance with Framework Agreement of Service Provide, signed between TP and
TPOFS, Service operations are being continued for Gülcihan-2 offshore well.
TPPD
TP Missan Ltd.
TP Kyrgyzstan Ltd.
TP Libya Ltd.
TP Siba Ltd.
TP Afghanistan Ltd.
TP Mansuria Ltd.
TPOFS
TP Badra Ltd.
TP Europe Ltd.
TP Oilfield Service Company Ltd. was founded on 07 June 2013 for the purpose of carrying
out oil activities such as, drilling services, well completion, geophysical operations related
with crude oil and natural gas production according to laws and regulations of foreign
states.
63
World Petroleum Congresses, first of wich was held in 1933, are the most prestigious
organization of the oil and natural gas sector and it is held in every three years. Today,
70 countries including Turkey are the members of the World Petroleum Congress, the
most comprehensive organization in the sector.
İstanbul, carrying its promotion activities with the motto of “this time İSTANBUL”,
was chosen as the host city in this huge organization known as “Olympics” of the oil
and natural gas sector by electing respectively Copenhagen, Astana and Houston in
the contentious voting held in Calgary, Canada on 23 October 2013.
In closing ceremony of 21st WPC held in Moscow between 15-20 June 2014, to which
Minister of Energy of Russian Federation and Minister of Energy and Natural Resources
of Republic of Turkey attended, handover ceremony was also held for Congress take
over from Russia to Turkey.
It is estimated that more than 500 CEOs of several companies, nearly 50 ministerial
level attendee as well as 7,000 delegates and 15,000 visitors will participate to 22nd
World Petroleum Congress in İstanbul in 2017.
İstanbul will host 22nd WPC that
is going to be held in 2017.
By dragging yesterday,
we reinforce our path,
by observing today, we
go through more proper
channels and with our
foresight, we prepare
our future for significant
accomplishments.
research center
Turkish Petroleum has an effective position among major oil companies in its region with
its contemporary, dependable, modern & accredited laboratories at an international level.
TP Research Center, established in 1971, has a capacity to perform over 400 different types
of analyses and tests with its 29 different laboratories and 137 well-trained, experienced
staff.
Research Center participated in various research projects with the other departments of
TP, universities, state institutions and organizations.
These projects are intended to solve problems faced/will be faced during the exploration,
drilling and production activities or to increase the quality and efficiency of the business
process.
Research Center provides projects related to Research and Development studies,
consultancy services and is an efficient Research Center with its expertise experiences.
In this context, a total of 26 projects, which are in collaboration with exploration, production,
occupational safety and environmental protection departments, were performed.
Quality control tests were conducted in the Geology and Engineering Laboratories within
the scope of these projects. 48,311 analyses and quality control tests were conducted.
81 technical reports were prepared related to these activities. Throughout the year, totally
2,670 man/day of field/well activities were carried out in domestic and international
operations.
Applied Well Control Courses given in TP Well Control Training Center are accredited
for Rotary Drilling Well Control Assessment Center and Introductory Rotary Drilling
Well Control Assessment Center by “International Well Control Forum” (IWCF) between
November 2011 and November 2015.
Thus, in the context of 16 courses, 126 IWCF Well Control Certificates, 248 TP Well Control
Certificates were given to 248 personnel. Totally 372 trainees were given occupational and
technical trainings with 31 courses on 10 different subjects.
Research Center Training Activities
67
• Applied Well Control,
• Biostratigraphy,
• Field Course of Sedimentology of Fan Deltas,
• Clay Mineralogy and Microanalysis Techniques
and Their Usage in Exploration,
• Basin Classification and Tectonics Course,
• Applied Drilling Fluids Technology,
• Well Cementing Slurry Design,
• Matrix Acidizing,
• Core Analyses,
• PVT Analyses,
• Oilfield Water Treatment & Injection Quality
Determination,
• Corrosion Control in Oil & Natural Gas
Production,
• Oil and Gas Geochemistry
• Organic Geochemistry
66
Research Center
Research Center Laboratory Services
R&D
In 2013; training, consulting and engineering services were performed on due basis
requests. On behalf of the private domestic and foreign oil companies, sedimentological,
mineralogical, petrographical, biostratigraphical and geochemical analyses were carried
out.
Research Center combined the knowledge gained through R&D studies and new
technology and reflected them to laboratory supported projects in the exploration and
production activities. These technologies are;
In this context;
• Stratigraphy,
• Sedimentology and Reservoir Geology,
• Drilling Technology,
• Organic Geochemistry,
laboratory services were provided.
In Drilling, Reservoir and Production Technologies laboratories, studies and tests related
to drilling fluid and cement program, additives quality control, rock mechanics, well bore
stability simulation, simulation of hydraulic and acid fracturing, basic and special core
analyses, reservoir fluids (PVT) analysis and EOR subjects, corrosion and scale control,
injection water quality, fuel oil analyses, are conducted.
In order to register Research Center Laboratories as contemporary, dependable and
umpire laboratories at international level, studies were carried out accordance with TS
EN ISO/IEC 17025:2005 “General Requirements for the Competence of Calibration and
Testing Laboratories” standards. Total of 25 analyses are being conducted which are Oil
Products Analyses, Water, Drilling Fluids Additives Analyses, Natural Gas Analyses.
69
• Isotope Geochemistry,
• Determination of Oil and Gas Composition,
• Determination of Oil Molecular Parameters,
• Surface Geochemical Prospection,
• Soil Gas Analyses,
• Determination of Source Rock Parameters,
• Scanning Electron Microscope,
• X-Ray Microanalysis Spectrometer,
• Core Gamma Ray Logger,
• Determination of Solid Phase Behavior under Reservoir Conditions,
• Interfacial Tension and Contact Angle Measurements,
• Reservoir Conditions Core Flood System
• GC Analysis to Determine Oxygen Compounds in Gasoline, Fatty Acid in Biodiesel,
• LC Analysis for PAH (Poly Aromatic Hydrocarbons) Measurements,
• Computer-Aided Mud-Cement Systems,
• ICP-MS,
• FTIR.
68
occupational safety
and environmental protection
We know that environmental consciousness
means our future. In this context, by taking
all necessary precautions to mitigate the
risk of our activities, we aim to bequeath a
clean, healthy and dependable environment
to the future.
With the thought that any activity can’t be sustainable if it is hazardous to environment,
we conduct our activities with the latest technology, by not harming the environment in
accordance with environmental legislations.
In 2013, complying with environmental legislation, bioremediation, stabilization and
neutralization activities were performed to prevent environmental contamination resulting
from field activities.
In the context of The Management Project of Waste Water Arising by the Oil and Natural
Gas Production Activities, to dispose the waste water arising from gas production
activities after processing, a pilot treatment facility is being operated and R&D studies
were held to establish a large scale facility. In the context of these studies, pilot scheme
and analyses were realized.
In risk studies; periodic audits are conducted for
detection of risks, researching the accident causes,
determining the hazards, detecting the unsafe
ambience and unsafe actions. Fire Protection Trainings
and drills were conducted to eliminate fire risks.
Deficiencies were detected and eliminated reviewing
the current systems.
71
In 2013, 6,629 staff took part in Occupational Safety
and Environmental Protection trainings. New subjects
were added to our training programmes. These are;
working on height courses for Derrickmen, Emergency
Intervention Planning courses for three Shore Facility
employees and BOSIET (Basic Offshore Safety
Induction and Emergency Training) & HUET (Helicopter
Underwater Escape Training) trainings for deep water
off-shore projects.
Since 2013, ISO 14001-OHSAS 18001 Occupational
Health,
Safety
and
Environment
Integrated
Management Systems were started to be implemented
in District Managements. IMS Certificate application to
TSE for General Directorate and District Managements
is going to be made.
70
In parallel with increasing exploration, drilling and production activities, `Human Health,
Occupational Safety and Environmental Protection` activities are carried out extensively
with ISO 14001-OHSAS 18001 Integrated Management Systems applications.
By working devotedly in unity
and solidarity, we strengthen with
our great effort…
human resources
74
75
With the honor of having a dynamic Human Resources System, we believe that success
can only be achieved through highly motivated, expert individuals.
We have been conducting our activities for 60 years with our worldwide technological
infrastructure and qualified manpower that represented our Corporation successfully in
international projects.
TP’s qualified and experienced staff (1,471 uncovered and 3,327 covered), having the
values of team work, communication, innovativeness and sense of responsibility, will
carry our Corporation to great success in the future.
In this context, TP continuously invests in human resources development in line with its
vision to become regionally effective “World-class Energy Company”.
In 2013, training and development programs continue for the staff to follow up-to-date
information and developing technology. In this context, our staff participated in 7,370 in
Turkey and 340 abroad, a total of 7,710, training programs.
16 students in UK, 209 in USA, in total 225 students study for master degree on behalf
of our Corporate by the end of 2013.
In TP, having a rooted company culture with its staff’s great endeavour and dedication,
total number of employees is 4,798; 1,672 in General Directorate, 1,675 in Batman, 959
in Adıyaman and 492 in Thrace District Management by the end of 2013.
T P2023
integrated transformation programme
76
It is considered that, projects decreasing our energy dependency on foreign sources will
be the most efficient contribution to Turkey on its becoming one of the greatest economies
in the world. Comprehending and catching the global trends in rapidly developing world,
keeping up with the financial development trend that Turkey has gained in recent years,
being an active player in oil sector that became more competitive with the new petroleum
law, contribution to the energy supply security of our country become more of an issue.
The added-value of TP is an input for any goods or services in energy sector. Hence its
effect is foreseen to be significant.
new generation
new Turkey
new Turkish Petroleum
77
Created by these facts, TP2023 Integrated Transformation Programme “Strategy
Roadmap” is designed as two main dimensions as Core Competence and Corporate
Competence. Core Competence represents the growth model formed by main activities
which are exploration and production activities of Turkish Petroleum. Whereas Corporate
Competence represents sustainability model defining business manner, corporate
infrastructure and management. “TP2023 Integrated Transformation Programme”
aims to reposition the corporate with a proactive approach in ever changing world by
consisting a corporate infrastructure and management considering the posterity. By
means of this, Turkish Petroleum is considered to be a company that has a stronger
corporate infrastructure, that is more sensitive to human, society and environment, that
is active in a wider area and that creates a more added value to the national economy.
Advancing successfully to the future
by investments bearing our sign…
Finance
TP and its Subsidiaries Consolidated Balance Sheets as of
31 December 2013 and 31 December 2012 (thousand dollars)
2013
2012
306,360
468,086
Bank Loans
61,402
142,062
57,952
32,288
327,497
245,191
753,211
887,627
51,358
67,597
287,948
367,942
Provision for Employment Termination Benefits
142,224
156,733
Deferred Tax Liabilities
305,390
236,463
53,931
29,333
840,851
858,068
980,349
980,349
2,804,886
2,532,058
(41)
-
Liabilities and Equity
Assets
2013
2012
Current Assets
Trade Payables
1,234,169
1,820,412
Trade Receivables
318,298
450,407
Current Tax Liabilities
Inventories
437,899
374,085
Other Payables and Expense Accruals
Other Receivables and Current Assets
151,834
187,219
Total Current Liabilities
2,142,200
2,832,123
Non-Current Liabilities
Cash and Cash Equivalents
Total Current Assets
Non-Current Assets
80
Current Liabilities
Bank Loans
740,331
740,331
Trade Receivables
71,559
7,224
Investments in Associates
26,636
20,331
Property, Plant and Equipment
3,625,629
3,219,426
Intangible Fixed Assets
261,453
289,836
Investment Property
114,581
95,688
Other Non-Current Assets
136,371
131,904
4,976,560
4,504,740
Cushion Gas and Line-fill
Total Non-Current Assets
Total Assets
Asset Retirement Obligation
Other Non-Current Liabilities
Total Non-Current Liabilities
Equity
Capital
Legal Reserves
Accumulated Remeasurement Gain/Loss
of Defined Benefit Pension Plan
7,118,760
7,336,863
Foreign Currency Translation Reserve
(37,600)
(11,398)
1,777,104
2,090,159
Total Equity
5,524,698
5,591,168
Total Liabilities and Equity
7,118,760
7,336,863
Retained Earnings
81
TP and its Subsidiaries Consolidated Balance Sheets as of
31 December 2013 and 31 December 2012 (thousand dollars)
Finance
TP and its Subsidiaries Consolidated Statement of Comprehensive
Income as of 31 December 2013 and 31 December 2012 (thousand dollars)
2013
3,479,710
3,527,909
(1,773,518)
(1,942,858)
1,706,192
1,585,051
(256,136)
(232,989)
Exploration Expenses
(71,505)
(136,039)
Marketing and Sales Expenses
(79,414)
(84,303)
96,605
49,571
6,305
(475)
Translation Adjustment
(145,951)
43,020
Other Gain / (Loss)
(414,268)
163,707
Profit Before Taxation
841,828
1,387,543
(387,075)
(247,863)
454,753
1,139,680
(26,202)
242
Accumulated Remeasurement Gain/Loss
of Defined Benefit Pension Plan
(41)
-
Total Comprehensive Income
428,510
1,139,922
Revenue
Cost of Sales
Gross Profit
General Administrative Expenses
Finance Income / Expense (Net)
Share of Profit of Associates
82
2012
Income Tax
Profit for the Year
83
Other Comprehensive Income / (Expenses)
Change in Foreign Currency Translation Reserve
Current Ration (Working Capital Ratio) 2.84
Acid - Test Ratio
2.26
Financial Leverage 0.22
The Ratio of Equity to Total Assets
0.78
The Ratio of Equity Capital to Liabilities 3.47
Gross Sales Revenue / Net Sales Revenue 0.49
Net Profit / Assert Ratio 0.06
Financial Ratios Derived from Consolidated
Financial Statements of TP for 2013
84
Finance
85
Finance
Significant Accounting Policies
1 Statement Of Compliance
2 Basis Of Preparation
The consolidated financial statements have been prepared on the historical cost basis. Historical cost is
generally based on the fair value of the consideration given in exchange for assets.
3 Basis Of Presentation Of Consolidated Financial Statements
The Company other than foreign branches and its Turkish subsidiaries maintain their books of account
and prepare their statutory financial statements in accordance with accounting principles in the Turkish
Commercial Code and tax legislation. Subsidiaries that are registered in foreign countries maintain their books
of account and prepare their statutory statements in accordance with the prevailing accounting principles in
their registered countries. The accompanying consolidated financial statements are based on the statutory
records, with adjustments and reclassifications, for the purpose of fair presentation in accordance with IFRS.
The consolidated financial statements of the Group are prepared on a going concern basis, which presumes
the realization of assets and settlement of liabilities in the normal course of operations and in the foreseeable
future.
Income and expenses of subsidiaries acquired or disposed of during the year are included in the consolidated
statement of profit or loss and other comprehensive income from the effective date of acquisition and up to
the effective date of disposal, as appropriate. Total comprehensive income of subsidiaries is attributed to the
owners of the Company and to the non-controlling interests even if this results in the non-controlling interests
having a deficit balance.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting
policies into line with those used by other members of the Group.
All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.
5 Investments In Associates
4 Basis Of Consolidation
An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an
interest in a joint venture. Significant influence is the power to participate in the financial and operating policy
decisions of the investee but is not control or joint control over those policies.
The details of the Company’s subsidiaries and branches as at 31 December 2013 and 31 December 2012 are
as follows:
The details of the Company’s investment in associates as at 31 December 2013 and 31 December 2012 are
as follows:
86
Name of Subsidiary and Branches
Place of
Incorporation
and Operation
Azerbaijan
Türkiye Petrolleri Anonim Ortaklığı Azerbaijan Branch
Turkish Petroleum Overseas Com.
Jersey
Turkish Petroleum Overseas Com. Azerbaijan Branch
Azerbaijan
Turkish Petroleum Overseas Com. Libya Branch
Libya
Turkish Petroleum Overseas Com. Cyprus Branch
Cyprus
Turkish Petroleum Overseas Com. Iraq Branch
Iraq
Turkish Petroleum BTC. Ltd.
Cayman Islands
Turkish Petroleum SCP. Ltd.
Cayman Islands
TP Badra Ltd.
Jersey
TP Missan Ltd.
Jersey
Turkish Petroleum International Com. Ltd. (“TPIC”)(*)
Cayman Islands
Türkiye Petrolleri Petrol Dağıtım A.Ş. (“TPPD”)
Turkey
TP Afghanistan Ltd.(**)
Jersey
TP Kyrgyzstan Ltd.(**)
TP Libya Ltd.(**)
Jersey
TP Mansuria Ltd.(**)
Jersey
TP Siba Ltd.(**)
Jersey
Turkish Petroleum Oil Field Services Com. Ltd ("TPOFSCO" (**) Jersey
TP Europe Ltd.(**)
Jersey
Jersey
The consolidated financial statements incorporate the financial statements of the Company and entities
controlled by the Company (its subsidiaries). Control is achieved where the Company has the power to govern
the financial and operating policies of an entity so as to obtain benefits from its activities.
Proportion of
Ownership
Interest and
Voting Power
Held by the
Group
2013
2012
%
%
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
-
Name of Associate
Place of
Incorporation
and Operation
Principal Activity
Petroleum Activities
Oil Transportation
Natural Gas Transportation
Petroleum Distribution&Sales
Petroleum Service Activities
(*) In 2013, TPIC’s share capital has been increased from USD 150 million to USD 500 million and shares of TPIC are transferred to BOTAŞ free of charge
based on the decision of Council of Ministers published in the Official Gazette dated 22 January 2013. In addition, again based on the decision of Council
of Ministers TPPD’s shares which belong to TPIC are transferred to TPOC, a subsidiary of the Company.
(**) These subsidiaries are established in 2013 and none of them is operational as of 31 December 2013; therefore these companies are not consolidated in
the accompanying consolidated financial statements.
Kazakhturkmunai LLP (“KTM”)
Kazakhstan
Proportion of Ownership
Interest and Voting Power
Held By The Group
2013
2012
%
%
49
49
87
Principal Activity
The results and assets and liabilities of associates are incorporated in these consolidated financial statements
using the equity method of accounting, except when the investment is classified as held for sale, in which case
it is accounted for in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations.
Under the equity method, an investment in associate is initially recognized in the consolidated balance sheet
at cost and adjusted thereafter to recognize the Group’s share of the profit or loss and other comprehensive
income of the associate.
When the Group's share of losses of an associate exceeds the Group's interest in that associate (which
includes any long-term interests that, in substance, form part of the Group's net investment in the associate),
the Group discontinues recognizing its share of further losses.
Additional losses are recognized only to the extent that the Group has incurred legal or constructive obligations
or made payments on behalf of the associate.
Any excess of the cost of acquisition over the Group’s share of the net fair value of the identifiable assets,
liabilities and contingent liabilities of the associate recognized at the date of acquisition is recognized as
goodwill which is included within the carrying amount of the investment. Any excess of the Group’s share of
the net fair value of the identifiable assets, liabilities and contingent liabilities over the cost of acquisition, after
reassessment, is recognized immediately in profit or loss.
The consolidated financial statements have been prepared in accordance with International Financial
Reporting Standards (IFRS).
Finance
The requirements of IAS 39 are applied to determine whether it is necessary to recognize any impairment loss
with respect to the Group’s investment in an associate. When necessary, the entire carrying amount of the
investment (including goodwill) is tested for impairment in accordance with IAS 36 Impairment of Assets as a
single asset by comparing its recoverable amount (higher of value in use and fair value less costs to sell) with
its carrying amount. Any impairment loss recognized forms part of the carrying amount of the investment. Any
reversal of that impairment loss is recognized in accordance with IAS 36 to the extent that the recoverable
amount of the investment subsequently increases.
The Group accounts for the assets, liabilities, revenues and expenses relating to its interest in a joint operation
in accordance with the IFRSs applicable to the particular assets, liabilities, revenues and expenses.
Upon disposal of an associate that results in the Group losing significant influence over that associate, any
retained investment is measured at fair value at that date and the fair value is regarded as its fair value on
initial recognition as a financial asset in accordance with IAS 39. The difference between the previous carrying
amount of the associate attributable to the retained interest and its fair value is included in the determination
of the gain or loss on disposal of the associate. In addition, the Group accounts for all amounts previously
recognized in other comprehensive income in relation to that associate on the same basis as would be
required if that associate had directly disposed of the related assets or liabilities.
Therefore, if a gain or loss previously recognized in other comprehensive income by that associate would be
reclassified to profit or loss on the disposal of the related assets or liabilities, the Group reclassifies the gain
or loss from equity to profit or loss (as a reclassification adjustment) when it loses significant influence over
that associate.
When a group entity transacts with a joint operation in which a group entity is a joint operator (such as a
purchase of assets), the Group does not recognise its share of the gains and losses until it resells those assets
to a third party.
6 Interests In Joint Operation
88
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights
to the assets, and obligations for the liabilities, relating to the arrangement. Joint control is the contractually
agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities
require unanimous consent of the parties sharing control.
The details of the Company’s interests in joint ventures at 31 December 2013 and 31 December 2012 are as
follows:
Name of Joint-Operation
Place of
Incorporation
and Operation
Azerbaijan International Operating Company
Azerbaijan Gas Supply Company Limited
Baku-Tbilisi-Ceyhan Pipeline Holding B.V. (“BTC Ho.”)
The Baku-Tbilisi-Ceyhan Pipeline Company (“BTC Co.”)
Baku-Tbilisi-Ceyhan Pipeline Finance B.V.
The South Caucasus Pipeline Company (“SCP Co.”)
The South Caucasus Pipeline Holding Company (“SCP Ho.”)
Proportion of Ownership
Interest and Voting Power
Held By The Group
Azerbaijan
Cayman Islands
Cayman Islands
Cayman Islands
Cayman Islands
Cayman Islands
Cayman Islands
2013
2012
%
6,75
7,20
6,53
6,53
6,53
9,00
9,00
%
6,75
7,20
6,53
6,53
6,53
9,00
9,00
Principal Activity
Natural Gas Activities
Finance
Petroleum Transportation
Finance
Natural Gas Transportation
Administration
When a group entity undertakes its activities under joint operations, the Group as a joint operator recognises
in relation to its interest in a joint operation:
• Its assets, including its share of any assets held jointly.
• Its liabilities, including its share of any liabilities incurred jointly.
• Its revenue from the sale of its share of the output arising from the joint operation.
• Its share of the revenue from the sale of the output by the joint operation.
• Its expenses, including its share of any expenses incurred jointly.
When a group entity transacts with its jointly controlled entity, profits and losses resulting from the transactions
with the jointly controlled entity are recognized in the Group's consolidated financial statements only to the
extent of interests in the jointly controlled entity that are not related to the Group.
7 Goodwill
Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of
the business less accumulated impairment losses, if any.
For the purposes of impairment testing, goodwill is allocated to each of the Group's cash-generating units (or
groups of cash-generating units) that is expected to benefit from the synergies of the combination. A cashgenerating unit to which goodwill has been allocated is tested for impairment annually, or more frequently
when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating
unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any
goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount
of each asset in the unit.
Any impairment loss for goodwill is recognized directly in profit or loss in the consolidated income statement.
An impairment loss recognized for goodwill is not reversed in subsequent periods.
89
On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the
determination of the profit or loss on disposal.
8 Revenue Recognition
Revenue from the sale of crude oil and natural gas is recorded when the significant risks and rewards of
ownership of the product is transferred to the buyer which is usually when legal title passes to the external
party.
Revenues associated with the transportation of oil are recorded when oil passes the related export meter.
The tariff revenue of the Group is recognized as the amount of tariffs for the volume of throughput measured
at the redelivery points.
In the distribution business, revenues from Group’s own filling stations are recognized when products are
supplied to the customers. In the case of non-Group filling stations, revenues are recognized when the
products are delivered to dealers in the fuel terminals.
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Group and
the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received,
or receivable, net of discounts, value-added tax (“VAT”), or other sales-related taxes.
8.1 Sale of Goods
Revenue from sale of goods is recognized when all the following conditions are satisfied:
• The Group has transferred to the buyer the significant risks and rewards of ownership of the goods;
• The Group retains neither continuing managerial involvement to the degree usually associated with
ownership nor effective control over the goods sold;
• The amount of revenue can be measured reliably;
Where a group entity transacts with its associate, profits and losses resulting from the transactions with the
associate are recognized in the Group’s consolidated financial statements only to the extent of interests in the
associate that are not related to the Group.
When a group entity transacts with a joint operation in which a group entity is a joint operator (such as a sale
or contribution of assets), the Group is considered to be conducting the transaction with the other parties
to the joint operation, and gains and losses resulting from the transactions are recognised in the Group’s
consolidated financial statements only to the extent of other parties’ interests in the joint operation.
Finance
Dividend income from investments is recognized when the shareholder's right to receive payment has been
established (provided that it is probable that the economic benefits will flow to the Group and the amount of
income can be measured reliably).
For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group’s
operations having functional currency other than USD are translated into USD using exchange rates prevailing
at the end of each reporting period. Income and expense items are translated at the average exchange rates
for the period, unless exchange rates fluctuated significantly during that period, in which case the exchange
rates at the dates of the transactions are used. Exchange differences arising, if any, are recognized in other
comprehensive income and accumulated in equity.On the disposal of an operation whose functional currency
is different than USD, all of the exchange differences accumulated in equity in respect of that operation
attributable to the owners of the Company is reclassified to profit or loss.
Interest income from a financial asset is recognized when it is probable that the economic benefits will flow
to the Group and the amount of income can be measured reliably. Interest income is accrued on a time basis,
by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that
exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's
net carrying amount on initial recognition.
In addition, in relation to a partial disposal of a subsidiary that does not result in the Group losing control
over the subsidiary, the proportionate share of accumulated exchange differences are re-attributed to noncontrolling interests and are not recognized in profit or loss. For all other partial disposals (i.e. partial disposals
of associates or jointly controlled entities that do not result in the Group losing significant influence or joint
control), the proportionate share of the accumulated exchange differences is reclassified to profit or loss.
8.3 Rental Income
Rental income from investment properties is recognized on a straight-line basis over the term of the relevant
lease.
Goodwill and fair value adjustments on identifiable assets and liabilities acquired arising on the acquisition of
a foreign operation are treated as assets and liabilities of the foreign operation and translated at the rate of
exchange prevailing at the end of each reporting period. Exchange differences arising are recognized in other
comprehensive income and accumulated in equity.
9 Exploration Expenses
11 Borrowing Costs
Exploration expenses relate exclusively to oil and gas exploration and production operations and comprise the
costs associated with unproved reserves. These include geological and geophysical costs for the identification
and investigation of areas with possible oil and gas reserves, administrative, legal and consulting costs in
connection with exploration. They also include all impairments on exploration wells no proved reserves could
be demonstrated. Depletion of economically successful exploration wells forms part of cost of sales.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which
are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are
added to the cost of those assets, until such time as the assets are substantially ready for their intended use
or sale. All other borrowing costs are recognized in the statement of income / (loss) in the period in which they
are incurred.
10 Foreign Currency Transactions
12 Inventories
The individual financial statements of each Group entity are presented in the currency of the primary economic
environment in which the entity operates (its functional currency). For the purpose of the consolidated
financial statements, the results and financial position of each entity are expressed in USD, which is the
functional currency of the Company, and the presentation currency for the consolidated financial statements.
The functional currency of TPPD is TRY, since the functional and presentation currency of the Group is USD,
financial statements of the TPPD is expressed in USD.
Inventories are stated at the lower of cost and net realizable value. Costs, including an appropriate portion of
fixed and variable overhead expenses, are assigned to inventories held by the method most appropriate to
the particular class of inventory, with the majority being valued on a weighted average basis. Net realizable
value represents the estimated selling price less all estimated costs of completion and costs necessary to
make the sale. When the net realizable value of inventory is less than cost, the inventory is written down to
the net realizable value and the expense is included in statement of income/(loss) in the period the write-down
or loss occurred. When the circumstances that previously caused inventories to be written down below cost
no longer exist or when there is clear evidence of an increase in net realizable value because of changed
economic circumstances, the amount of the write-down is reversed. The reversal amount is limited to the
amount of the original write-down.
8.2 Dividend and Interest Income
90
In preparing the financial statements of the individual entities, transactions in currencies other than USD
(foreign currencies) are recorded at the rates of exchange prevailing on the dates of the transactions. At the
end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates
prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are
retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that
are measured in terms of historical cost in a foreign currency are not retranslated.
Exchange differences are recognized in profit or loss in the period in which they arise except for:
• Exchange differences on foreign currency borrowings relating to assets under construction for future
productive use, which are included in the cost of those assets where they are regarded as an adjustment to
interest costs on those foreign currency borrowings;
• Exchange differences on transactions entered into in order to hedge certain foreign currency risks (see
below for hedging accounting policies); and
• Exchange differences on monetary items receivable from or payable to a foreign operation for which
settlement is neither planned nor likely to occur, which form part of the net investment in a foreign operation,
and which are recognized in the foreign currency translation reserve and recognized in profit or loss on
disposal of the net investment.
91
13 Intangible Assets and Property, Plant and Equipment
Intangible assets and property, plant and equipment are carried at cost of acquisition or construction (where
and to the extent applicable) less accumulated depreciation, amortization and any accumulated impairment
losses. Land is not depreciated and carried at cost less accumulated impairment.
Properties in the course of construction for production, rental or administrative purposes, or for purposes
not yet determined, are carried at cost, less any recognized impairment loss. Such properties are classified
to the appropriate categories of property, plant and equipment when completed and ready for intended use.
Depreciation of these assets, on the same basis as other property assets, commences when the assets are
ready for their intended use.
Depreciation and amortization is recognized so as to write off the cost or valuation of assets, other than
freehold land and properties under construction, less their residual values over their estimated useful lives,
using the straight-line method except for oil and gas production assets; where depletion occurs to a large
• It is probable that the economic benefits associated with the transaction will flow to the entity; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Finance
Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned
assets. However, when there is no reasonable certainty that ownership will be obtained by the end of the
lease term, assets are depreciated over the shorter of the lease term and their useful lives.
An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits
are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or
retirement of an item of property, plant and equipment is determined as the difference between the sales
proceeds and the carrying amount of the asset and is recognized in profit or loss.
The Group accounts for its oil and gas exploration, development and production activities under the successful
efforts method of accounting, having regard to the requirements of IFRS 6 Exploration for and Evaluation of
Mineral Resources. Under this method, costs of acquiring properties (including the cost of rights to operate
a license area), costs of drilling development wells, and costs of drilling successful exploratory wells are
capitalized.
Costs without any identifiable future benefit are expensed, like geological and geophysical costs, and the costs
of drilling exploratory wells that do not find proved reserves are expensed. Costs for future abandonment, or
asset retirement obligations, of the offshore and onshore facilities are capitalized as part of the investment,
and the present value of future liability accrued as a liability.
92
Development and production assets are accumulated on a field by field basis and represent the cost of
developing the commercial reserves discovered and bringing them into production, together with the
exploration expenditures incurred in finding commercial reserves transferred from intangible assets.
Capitalized costs and production equipment are depreciated under the units-of-production method based on
estimated proven oil and natural gas reserves. The depreciation base includes total capitalized costs and it
is reduced with salvage value. Changes in the estimates of commercial reserves or future field development
are accounted prospectively.
In classifying costs, a distinction is made between tangible and intangible assets. This assessment is made on
a field-by-field basis. Costs relating to drilling exploratory wells and costs relating to acquisition of exploration
licenses are initially classified as intangible assets. Such assets will be re-classified to tangible assets when
the technical feasibility and commercial viability of extracting the resources are demonstrable.
13.1 Intangible Assets Acquired Separately
Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated
amortization and accumulated impairment losses. Amortization is recognized on a straight-line basis over
their estimated useful lives. The estimated useful life and amortization method are reviewed at the end of
each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.
Intangible assets with indefinite useful lives that are acquired seperately are carried at cost less accumulated
impairment losses.
14 Impairment of Tangible and Intangible Assets Other Than Goodwill
Assets that have an indefinite useful life, for example goodwill, are not subject to amortization and are tested
annually for impairment. Assets that are subject to amortization are reviewed for impairment whenever events
or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss
is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of
assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash
flows (cash-generating units). Non-financial assets other than goodwill that suffered impairment are reviewed
for possible reversal of the impairment at each reporting date.
Intangible assets like capitalized exploration costs and license acquisition costs are subject to management
review at least annually to confirm that the carrying amount does not exceed the recoverable amount. The
evaluation includes technical, commercial and management reviews and the assessment of whether plans
for future drilling in the license exists or whether a development decision is planned in the near future. When
this is no longer the case, the costs are written off.
15 Investment Property
Investment properties are properties held to earn rentals and/or for capital appreciation, including property
under construction for such purposes. Investment properties are carried at cost less accumulated depreciation
and any accumulated impairment losses. The carrying amount includes the cost of replacing part of an
existing investment property at the time that cost is incurred if the recognition criteria are met; and excludes
the costs of day to day servicing of an investment property. Depreciation is provided on investment property
on a straight line basis.
When the use of a property changes such that it is reclassified as property, plant and equipment, its fair value
at the date of reclassification becomes its cost for subsequent accounting.
If owner occupied property becomes an investment property, the Group accounts for such property in
accordance with the policy stated under property, plant and equipment up to the date of change in use.
An investment property is derecognized upon disposal or when the investment property is permanently
withdrawn from use and no future economic benefits are expected from disposal. Any gain or loss arising
on derecognition of the property (calculated as the difference between the net disposal proceeds and the
carrying amount of the asset) is included in profit or loss in the period in which the property is derecognized.
93
Transfers are made to or from investment property only when there is a change in use. For a transfer from
investment property to owner occupied property, the deemed cost for subsequent accounting is the fair
value at the date of change in use. If owner occupied property becomes an investment property, the Group
accounts for such property in accordance with the policy stated under property, plant and equipment up to
the date of change in use.
No assets held under operating lease have been classified as investment properties.
16 Taxation
Turkish tax legislation does not permit a parent company and its subsidiary to file a consolidated tax return.
Therefore, provisions for taxes, as reflected in the accompanying consolidated financial statements, have
been calculated on a separate-entity basis.
Income tax expense represents the sum of the tax currently payable and deferred tax.
16.1 Current Tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’
as reported in the consolidated statement of profit or loss because of items of income or expense that are
taxable or deductible in other years and it items that are never taxable or deductible. The Group’s liability for
current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the
reporting period.
16.2 Deferred Tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in
the financial statements and the corresponding tax bases which are used in the computation of taxable profit.
Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are
recognized for all deductible temporary differences to the extent that it is probable that taxable profits will
extent on a unit of production basis. The estimated useful lives, residual values and depreciation method are
reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a
prospective basis.
Finance
Deferred tax liabilities are recognized for taxable temporary differences associated with investments in
subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the
reversal of the temporary difference and it is probable that the temporary difference will not reverse in the
foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such
investments and interests are only recognized to the extent that it is probable that there will be sufficient
taxable profits against which to utilize the benefits of the temporary differences and they are expected to
reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to
the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the
asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in
which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from
the manner in which the Group expects, at the reporting date, to recover or settle the carrying amount of its
assets and liabilities.
16.3 Current and Deferred Tax For The Period
94
Current and deferred tax are recognized as in profit or loss, except when they relate to items that are
recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax
are also recognized in other comprehensive income or directly in equity respectively. Where current tax or
deferred tax arises from the initial accounting for a business combination, the tax effect is included in the
accounting for the business combination.
17 Employee Benefits
17.1 Termination and Retirement Benefits
Under Turkish law and union agreements, lump sum payments are made to employees retiring or involuntarily
leaving the Group. Such payments are considered as being part of defined retirement benefit plan as per
International Accounting Standard No. 19 (revised) “Employee Benefits” (“IAS 19”).
The retirement benefit obligation recognized in the consolidated statement of financial position represents the
present value of the defined benefit obligation.
18 Financial Assets
All financial assets are recognized and derecognized on a trade date where the purchase or sale of a financial
asset is under a contract whose terms require delivery of the financial asset within the timeframe established
by the market concerned, and are initially measured at fair value, plus transaction costs except for those
financial assets classified as at fair value through profit or loss, which are initially measured at fair value.
Financial assets are classified into the following specified categories: financial assets as ‘at fair value through
profit or loss’ (FVTPL), ‘held-to-maturity investments’, ‘available-for-sale’ (AFS) financial assets and ‘loans and
receivables’. The classification depends on the nature and purpose of the financial assets and is determined
at the time of initial recognition.
18.1 Cash and Cash Equivalents
Cash and cash equivalents include cash on hand and deposits held on call with banks with maturity less
than three months. Restricted cash balances represent funds held as bank guarantees on certain exploration
licenses and are excluded from cash and cash equivalents for the purposes of the consolidated cash flow
statement. Balances restricted from being exchanged or used to settle a liability are included in other current
assets.
The Group’s cash and cash equivalents are classified under the category of ‘Loans and Receivables’.
19 Financial liabilities and Equity Instruments
19.1 Classification as Debt or Equity
Financial liabilities and equity instruments issued by the Group are classified according to the substance of the
contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An
equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting
all of its liabilities. The accounting policies adopted for specific financial liabilities and equity instruments are
set out below.
19.2 Financial Liabilities
Financial liabilities are classified as either financial liabilities at FVTPL or other financial liabilities.
19.3 Other Financial Liabilities
Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs.
Other financial liabilities are subsequently measured at amortized cost using the effective interest method,
with interest expense recognized on an effective yield basis.
The effective interest method is a method of calculating the amortized cost of a financial liability and of
allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts
estimated future cash payments through the expected life of the financial liability, or, where appropriate, a
shorter period to the net carrying amount on initial recognition.
95
20 Provisions
Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past
event, it is probable that the Group will be required to settle the obligation, and a reliable estimate can be
made of the amount of the obligation.
The amount recognized as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its
carrying amount is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a
third party, the receivable is recognized as an asset if it is virtually certain that reimbursement will be received
and the amount of the receivable can be measured reliably.
Where a material liability for dismantling and removal, asset retirement, soil remediation and site restoration
at the end of the productive life of a field exists, a provision for asset retirement obligation (or “ARO”) is
recognised. Net present value of the estimated ARO is recognized as soon as the obligation to dismantle and
remove production assets, pipelines and other installations exists. The corresponding cost of the retirement
obligation is capitalized as part of the development cost or acquisition cost and depreciated using the unit
of production method. The unwinding of discounting leads to interest expense and accordingly to increased
obligations at each balance sheet date until decommissioning or restoration.
The effects of changes in estimates on the units of production calculation are accounted for prospectively
over the estimated remaining proven reserves of each pool.
be available against which those deductible temporary differences can be utilized. Such deferred tax assets
and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition
(other than in a business combination) of other assets and liabilities in a transaction that affects neither the
taxable profit nor the accounting profit.
a sixty
year
intense
experience
since 1954, there have been the signs of
Turkish Petroleum on this land...
60 SECONDS 1 MINUTE
60 MINUTES 1 HOUR
60 HOURS 2,5 DAYS
60 DAYS 2 MONTHS
60 MONTHS 5 YEARS
99
numerous people,
employment, labour, power,
sweat and success...
Turkish Petroleum is a
heirloom for its each
employee.
milestones
1954-1963
Batman Refinery was founded
Turkish Petroleum was founded on 10 December 1954
First strike of Turkish Petroleum, Germik-1
First district management of our Corportaion was founded in Batman
100
İstanbul Petrol Rafinerileri A.Ş. (İPRAŞ) was founded
Turkish greatest reserve Batı Raman Field
Gas stations were founded
101
1964-1973
Petro Kimya A.Ş. (PETKİM) was founded
ISILİT Ltd. was founded
İPRAGAZ was founded
Oil business themed “Toprağın Kanı” (The Blood of the Land) movie
was shooted in Batman
First pipeline inauguration (Batman-Dörtyol, İskenderun)
102
Research and Etude Project (Gölbaşı) was founded
Turkish Petroleum Batman Orchestra earned Golden Microphone
Annual production exceeded 1 million barrels
Türk Mühendislik ve Müteahhitlik A.Ş. (TÜMAŞ) was founded
Offshore exploration of our Corporation started, Payas-1
First natural gas was discovered, Hamitabat
First oil discovery in Adıymanan, Adıyaman-2
İstanbul Gübre Sanayii (İGSAŞ) was founded
İPRAŞ was devolved totally upon Turkish Petroleum
Adıyaman-Sarıl Oil Pipeline came on stream
Data Process Center was founded
103
1974-1983
Deniz İşletmeciliği ve Tankerciliği A.Ş. (DİTAŞ) was founded
Research Center was founded in Ankara
Boru Hatları ile Petrol Taşıma A.Ş. (BOTAŞ) was founded
Akaryakıt Dağıtım A.Ş. (ADAŞ) was founded
104
Kıbrıs Türk Petrolleri Ltd. Şti. was founded
Kerkük-Yumurtalık Pipeline put into operation
100 millionth barrel in production
Libya Arap- Türk Ortak Mühendislik ve Müşavirlik Hizmetleri A.Ş. was founded
The title for “Corporation of Highest Production in Turkey”
105
1984-1993
Thrace District Management was founded
Adıyaman District Management was founded
Turkish Petroleum, was 63rd in greatest companies of the world
Güllük Service Center became active
106
Kırıkkale Refinery was founded
Drilling Record; 224,000 meters in 123 wells with 31 rigs
Turkish Petroleum is expanding overseas
Turkish Petroleum International Company (TPIC) was founded
Modernization in Interpretation Systems – 3 Dimesional Interpretation
Golden year – record of 50 years in production – discovery of Karakuş oil field
Turkish Petroleum in Kazakhstan
Associated Company KazakTurkMunay (KTM) Ltd. was founded
Turkish Petroleum is in Azerbaijan, departure gate of Eurasia
107
1994-2003
Turkish Petroleum Overseas Company (TPOC) was founded
First offshore production – Kuzey Marmara Field
Applied Well Control Training Center
First oil discovery in West Anatolia – Alaşehir-1
108
International well control certificate was given to our Corporation
TPIC Oil and Oil Products Trade
Kuzey Marmara and Değirmenköy Underground Natural Gas Storage Project
Baku–Tbilisi–Ceyhan (BTC) Pipeline Project
South Caucasus Natural Gas Pipeline (SCP) Project
109
2004-2013
First economical natural gas discovery in the Black Sea territorial waters of our
country – Ayazlı-1 (shallow)
Türkiye Petrolleri Petrol Dağıtım A.Ş. (TPPD) was founded
Inauguration of Silivri Natural Gas Storage Facilities
The deepest well of Turkey, Yuvaköy-1 (7,216 m)
110
Oil discovery in Libya
Turkish Petroleum in Iraq
First seismic vessel Barbaros Hayreddin Paşa was purchased
First field purchase in Russian Federation, Baytuhan Project
111
Contact Information
Headquartes
Turkish Petroleum Corporation
Söğütözü, 2180th Avenue, No: 10
06100 Çankaya / Ankara / TURKEY
Phone : +90 312 207 20 00
Fax : +90 312 286 90 00 - 312 286 90 01
e-mail : [email protected]
web : www.tpao.gov.tr
District Managements
72100, Batman / TURKEY
Phone : +90 488 213 27 10
Fax : +90 488 213 41 49 - 488 213 39 14
112
39750, Lüleburgaz / Kırklareli / TURKEY
Phone : +90 288 417 38 90
Fax : +90 288 417 22 03
02040, Türmüs Yolu Üzeri /
Adıyaman / TURKEY
Phone : +90 416 227 28 11
Fax : +90 416 227 28 07 - 18
Subsidiary
TPPD, Turkish Petroleum Distribution Inc.
Söğütözü Ave., No: 27
06520 Ankara / TURKEY
Phone : +90 312 218 58 00
Fax : +90 312 287 51 24
cytasarım / www.cytasarim.com
International Offices
Azerbaijan TP / TPOC / TPBTC / TPSCP Office
340, Nizami str, 37000 ISR Plaza, 4th Floor,
AZ 1005 Baku - AZERBAIJAN
Phone : (00 99 412)498 95 26 - 493 14 98
Fax : (00 99 412)498 14 35
TPOC Libya Office
Tripoli Tower 1, 10th Floor, No: 101
Tripoli - LIBYA
Phone : (00 218 21) 335 14 94 - 335 14 96 / 97
Fax : (00 218 21) 335 14 95
TPOC Iraq Office
Waziriyah. M 301. S 5.-H. 6
Baghdad / IRAQ
KazakTurkMunai Ltd. Joint Company
Ramada Plaza Hotel Business Center, 6th floor
Abay Ave., 010000, Astana / KAZAKHSTAN
Phone : 00 7 (7172) 39 10 25
Fax : 00 7 (7172) 39 10 26
TPOC Afghanistan Office
Bandar Saripul Sarak, 2. Dast-i Rast Manzil,
Sheberghan, AFGHANSITAN

domestic investments - Türkiye Petrolleri AO

Transcription

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