turkish petroleum, with its - türkiye petrolleri a.o · who are we? turkish petroleum, one of the...
TRANSCRIPT
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.
08 12about us 14organization chart message from the president 18board of directors20general management 24indicators 28domestic projects 40
42 46district managements
distribution company international projects 66research center70
occupational safety andenvironmental protection 74human resources integrated transformation programme
8076
97 112finance 60th anniversary contact
contents
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.
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.
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about us
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.
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Merit Is our principle of respect to labour,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,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.
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,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.
our values our purposes
Vice PresidentMehmet Sait KİRAZOĞLU
Vice PresidentSerdal AZARSIZ
Adıyaman District ManagementSavaş BÜTÜN
Department of FinanceAlper YILDIRIM
Thrace District ManagementMurat HACIHALİLOĞLU
Department of Support ServicesErkan İNCE
Turkish Petroleum Overseas Co.(TPOC)
Department of Information TechnologiesM. Abuzer OKUTAN
Chairman and President (A)Besim ŞİŞMAN
Vice PresidentAhmet ADANIR
Department of ProductionAli TİREK
Department of Machinery Supply&ConstructionMehmet Talip BEKTAŞ
Department of OccupationalSafety&Environmental Protectionİrfan MEMİŞOĞLU
Department of Business DevelopmentM. Fehmi KARCI
Department of Well CompletionEnver ÇETİNKAYA
Department of Strategy DevelopmentMemet Ali KAYA
Vice PresidentMurat ALTIPARMAK
Batman District ManagementGökhan AKIN
Department of DrillingRecai GÜNGÖR
Department of ExplorationErdal COŞKUN
Department of Research CenterSüleyman ÇALIK
Department of Human ResourcesŞeref ASLAN
Auditing CommitteeAhmet ASLAN
Legal AdvisoryDavut İYRAS
Member of the BoardCumali KINACI
Member of the BoardMurat ALTIPARMAK
Member of the BoardSelami İNCEDALCI
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organization chart
Bureau of the Board of Directors
Secretariat to the President
Advisor to the President
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.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.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. 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.
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message from the president
Message from the President
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.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 ŞİŞMANChairman and President (A)
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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
Besim ŞişmanChairman and President (A)
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.
Murat AltıparmakVice President and Member of the Board
He graduated from Istanbul Technical University Petroleum Engineering in 1979.
Since 2003, He has been the Vice President of TP and since 2010 He has been a Member of the Board.
Cumali KınacıMember of the Board
He graduated from Istanbul Technical 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.
Since 2003, He has been a Member of the Board of TP.
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.
Selami İncedalcıMember of the Board
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General Management
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Chairman and President (A)
Besim Şişman
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.
Murat Altıparmak
He graduated from Istanbul Technical University Petroleum Engineering in 1979.
Since 2003, He has been the Vice President of TP and since 2010 He has been a Member of the Board.
Vice President and Member of the Board
Vice President
Ahmet Adanır
He graduated from Istanbul Technical University Faculty of Mines in 1980.
Since 2004, He has been the Vice President of TP.
Vice President
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.
Since 2011, He has been the Vice President of TP.
Mehmet Sait Kirazoğlu Serdal Azarsız
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.
Vice President
the deeper, the stronger we are
With the labour and the path we passed, we sign on significant activities…
Indicators
3,527,909
1,139,680
2,832,123
4,504,740
5,591,168
887,627
858,068
3.19
0.87
0.45
3,479,710
454,753
2,142,200
4,976,560
5,524,698
753,211
840,851
2.84
0.78
0.49
2012 activities2013
sales revenues
net profit
total current assets
total fixed assets
shareholder’s equity
short-term foreign liabilities
long-term foreign liabilities
current ratio (%)
shareholder’s equity/total assets
gross sales revenue/ net sales revenue
thousand dollars
geology
seismic
drilling
production
2D
3D
(km²)
onshore (km)
offshore (km)
onshore (km²)
offshore (km²)
onshore (thousand m)
offshore (thousand m)
10,220
585
-
835
539
172.6
3.6
13.6
10.9
5,687
1,233
12,533
413
3,583
197.1
-
14.1
12.7
domestic (million barrels oe)
international (million barrels oe)
20122013
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million dollarsdomestic investments
million dollarsinternational investments2010389
579502396
2011
2012
2013
2010350370487714
2011
2012
2013
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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2928Main 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
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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 6natural gas wells.
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.
We signed many joint exploration and production agreements with international oil companies for our oil and natural gas exploration studies.
Domestic Projects
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b) Offshore Fields
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.
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.
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Crude Oil and Natural Gas Production
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.
Domestic Projects
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Production Enhancement Projects
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.
Domestic Projects
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38Kuzey 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.
Domestic Projects
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.
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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.Batman District Management
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.
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.
Thrace District Management
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.
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.
Adıyaman District Management
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.
district managements
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TP Petroleum Distribution Inc. (TPPD)
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.
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.
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, 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”.
distribution company
According to 2013 records, it’s the 6th in 73 registered distribution companies with its 3.7% market share.
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We open our doors wide to become a worldwide company and walk towards to reach our goals…
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AZERBAIJANACG
SHAH DENIZBTCSCPALOV
IRAQMANSURIA
BADRAMISSAN
SIBA
LIBYABLOK 147
AFGHANISTANMEZAR-I SERIF
SANDIKLI
KYRGYZSTANMAİLU-SU VE
EAST İZBASKENT
KAZAKHSTANKAZAK TÜRKMUNAY
RUSSIABAYTUGAN
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.
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.
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.
international projects
International Projects
4948
Kazakhstan
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.
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.
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 Baku-Tbilisi-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.
In 2013, the annual crude oil production of TP is 945 thousand barrels while the cumulative crude oil production is 19 million barrels.
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International Projects
5150
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.
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.
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.
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.
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. 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.
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 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.
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International Projects
5352
Alov Project
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.
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 three-year exploration period, 1,400 km² 3D seismic surveys completed. The first exploration well drilling is waiting for the legal status determination of Caspian Sea.
Pipeline Projects of TP Contributing to the Energy Corridor
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.
Following the determination of the Black Sea hydrocarbon potential, it will be transported through our country to the markets in safe way on time.
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.
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International Projects
5554
Baku-Tbilisi-Ceyhan Main Export Crude Oil Pipeline (BTC) Project
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.
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.
Afghanistan
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.
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%).
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 Exploration-Production Project .
Within the scope of Block 147 Project, forced major announcement was realized in the block because of negative security conditions in the region.
South Caucasus Natural Gas Pipeline (SCP) Project
Within the scope of SCP Project, Shah Deniz natural gas is being transported to Georgian-Turkish 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 AGSC-BOTAŞ 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.
Oil & Gas Exploration, Production and Sharing Agreement was signed on 8 October 2013.
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International Projects
5756
Iraq
Mansuria Project
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.
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.
Badra 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.
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.
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.
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International Projects
5958 Russia
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.
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.
Kyrgyzstan
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.
Within the scope of an agreement planned with a residentiary company, consultation is realized to provide legal donation and service.
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International Projects
6160
Turkish Petroleum Overseas Company Ltd. (TPOC)
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.
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
TPPD
TP Kyrgyzstan Ltd.
TP Libya Ltd. TP Siba Ltd.TP Mansuria Ltd. TPOFS
TP Badra Ltd.TP Europe Ltd.
TP Afghanistan Ltd.
TP Missan Ltd.
TPBTC Ltd. TPOC Ltd. TPSCP Ltd.
TP Oilfield Services Company Ltd. (TPOFS)
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.
In accordance with Framework Agreement of Service Provide, signed between TP and TPOFS, Service operations are being continued for Gülcihan-2 offshore well.
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İstanbul will host 22nd WPC that is going to be held in 2017.
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.
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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.
6766
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
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 GeochemistryOrganic Geochemistry
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Research Center
6968 Research Center Laboratory Services
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.
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.
R&D
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;
• 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.
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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.
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.
7170
occupational safety and environmental protection
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.
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.
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By working devotedly in unity and solidarity, we strengthen with our great effort…
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 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.
7574
human resources
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.
In this context, TP continuously invests in human resources development in line with its vision to become regionally effective “World-class Energy Company”.
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.
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7776 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.
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.
new generationnew Turkey
new Turkish Petroleum
integrated transformation programmeT P2023
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Advancing successfully to the future by investments bearing our sign…
Finance
2012
Current Assets
Cash and Cash Equivalents
Trade Receivables
Inventories
Other Receivables and Current Assets
Total Current Assets
Non-Current Assets
Cushion Gas and Line-fill
Trade Receivables
Investments in Associates
Property, Plant and Equipment
Intangible Fixed Assets
Investment Property
Other Non-Current Assets
Total Non-Current Assets
Total Assets
TP and its Subsidiaries Consolidated Balance Sheets as of 31 December 2013 and 31 December 2012 (thousand dollars)
Assets2012
2013
1,234,169
318,298
437,899
151,834
2,142,200
740,331
71,559
26,636
3,625,629
261,453
114,581
136,371
4,976,560
7,118,760
1,820,412
450,407
374,085
187,219
2,832,123
740,331
7,224
20,331
3,219,426
289,836
95,688
131,904
4,504,740
7,336,863
Liabilities and Equity
Current Liabilities
Trade Payables
Bank Loans
Current Tax Liabilities
Other Payables and Expense Accruals
Total Current Liabilities
Non-Current Liabilities
Bank Loans
Asset Retirement Obligation
Provision for Employment Termination Benefits
Deferred Tax Liabilities
Other Non-Current Liabilities
Total Non-Current Liabilities
Equity
Capital
Legal Reserves
Accumulated Remeasurement Gain/Loss of Defined Benefit Pension Plan
Foreign Currency Translation Reserve
Retained Earnings
Total Equity
Total Liabilities and Equity
2013
306,360
61,402
57,952
327,497
753,211
51,358
287,948
142,224
305,390
53,931
840,851
980,349
2,804,886
TP and its Subsidiaries Consolidated Balance Sheets as of 31 December 2013 and 31 December 2012 (thousand dollars)
8180
(37,600)
1,777,104
5,524,698
7,118,760
(41)
468,086
142,062
32,288
245,191
887,627
67,597
367,942
156,733
236,463
29,333
858,068
980,349
2,532,058
(11,398)
2,090,159
5,591,168
7,336,863
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Finance
TP and its Subsidiaries Consolidated Statement of Comprehensive Income as of 31 December 2013 and 31 December 2012 (thousand dollars)
Revenue
Cost of Sales
Gross Profit
General Administrative Expenses
Exploration Expenses
Marketing and Sales Expenses
Finance Income / Expense (Net)
Share of Profit of Associates
20122013
Profit Before Taxation
Income Tax
Profit for the Year
Other Comprehensive Income / (Expenses)
Change in Foreign Currency Translation Reserve
Accumulated Remeasurement Gain/Loss of Defined Benefit Pension Plan
Total Comprehensive Income
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
Translation Adjustment
Other Gain / (Loss)
8382
3,479,710
(1,773,518)
1,706,192
(256,136)
(71,505)
(79,414)
96,605
841,828
(387,075)
454,753
(26,202)
(145,951)
(414,268)
(41)
428,510
3,527,909
(1,942,858)
1,585,051
(232,989)
(136,039)
(84,303)
49,571
1,387,543
(247,863)
1,139,680
242
43,020
163,707
-
1,139,922
6,305 (475)
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Finance
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Finance
8786
Significant Accounting Policies1 Statement Of Compliance
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS).
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.
4 Basis Of Consolidation
The details of the Company’s subsidiaries and branches as at 31 December 2013 and 31 December 2012 are as follows:
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.
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
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 investment in associates as at 31 December 2013 and 31 December 2012 are as follows:
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.
Principal Activity
(*) 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.
Proportion of Ownership Interest and
Voting Power Held by the
Group
Place of Incorporation and OperationName of Subsidiary and Branches
Türkiye Petrolleri Anonim Ortaklığı Azerbaijan BranchTurkish Petroleum Overseas Com.Turkish Petroleum Overseas Com. Azerbaijan BranchTurkish Petroleum Overseas Com. Libya BranchTurkish Petroleum Overseas Com. Cyprus BranchTurkish Petroleum Overseas Com. Iraq BranchTurkish Petroleum BTC. Ltd.Turkish Petroleum SCP. Ltd.TP Badra Ltd.TP Missan Ltd.Turkish Petroleum International Com. Ltd. (“TPIC”)(*)Türkiye Petrolleri Petrol Dağıtım A.Ş. (“TPPD”)TP Afghanistan Ltd.(**)TP Kyrgyzstan Ltd.(**)TP Libya Ltd.(**)TP Mansuria Ltd.(**)TP Siba Ltd.(**)Turkish Petroleum Oil Field Services Com. Ltd ("TPOFSCO" (**)TP Europe Ltd.(**)
AzerbaijanJersey
AzerbaijanLibya
CyprusIraq
Cayman IslandsCayman Islands
JerseyJersey
Cayman IslandsTurkeyJerseyJerseyJerseyJerseyJerseyJerseyJersey
2013%
100100100100100100100100100100
-100100100100100100100100
2012%
100100100100100100100100100100100100
-------
Petroleum ActivitiesPetroleum ActivitiesPetroleum ActivitiesPetroleum ActivitiesPetroleum ActivitiesPetroleum ActivitiesOil TransportationNatural Gas TransportationPetroleum ActivitiesPetroleum ActivitiesPetroleum ActivitiesPetroleum Distribution&SalesPetroleum ActivitiesPetroleum ActivitiesPetroleum ActivitiesPetroleum ActivitiesPetroleum ActivitiesPetroleum Service ActivitiesPetroleum Activities
Principal Activity
Proportion of Ownership Interest and Voting Power
Held By The Group
2013
%
2012
%
Place of Incorporation and OperationName of Associate
Kazakhturkmunai LLP (“KTM”) Kazakhstan Petroleum Activities49 49
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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.
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.
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.
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 cash-generating 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.
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;
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.
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.
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.
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.
6 Interests In Joint Operation
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:
Principal Activity
Proportion of Ownership Interest and Voting Power
Held By The Group
2013
%
2012
%
Place of Incorporation and OperationName of Joint-Operation
Azerbaijan International Operating CompanyAzerbaijan Gas Supply Company LimitedBaku-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.”)
Azerbaijan Cayman Islands Cayman Islands Cayman Islands Cayman Islands Cayman Islands Cayman Islands
Petroleum ActivitiesNatural Gas ActivitiesFinancePetroleum TransportationFinanceNatural Gas TransportationAdministration
6,757,206,536,536,539,009,00
6,757,206,536,536,539,009,00
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• It is probable that the economic benefits associated with the transaction will flow to the entity; andthe costs incurred or to be incurred in respect of the transaction can be measured reliably.
8.2 Dividend and Interest Income
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).
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.
8.3 Rental Income
Rental income from investment properties is recognized on a straight-line basis over the term of the relevant lease.
9 Exploration Expenses
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.
10 Foreign Currency Transactions
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.
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.
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.
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 non-controlling 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.
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.
11 Borrowing Costs
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.
12 Inventories
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.
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
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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.
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.
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.
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
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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.
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
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.
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.
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since 1954, there have been the signs of Turkish Petroleum on this land...
a sixty year intense experience
numerous people, employment, labour, power,
sweat and success...
Turkish Petroleum is a heirloom for its each
employee.
60 SECONDS 1 MINUTE60 MINUTES 1 HOUR
60 HOURS 2,5 DAYS60 DAYS 2 MONTHS
60 MONTHS 5 YEARS99
milestones
101
1954-1963Batman 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
İstanbul Petrol Rafinerileri A.Ş. (İPRAŞ) was founded
Turkish greatest reserve Batı Raman Field
Gas stations were founded
100
103
1964-1973Petro 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)
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
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1974-1983Deniz 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
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”
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1984-1993Thrace District Management was founded
Adıyaman District Management was founded
Turkish Petroleum, was 63rd in greatest companies of the world
Güllük Service Center became active
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
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1994-2003Turkish 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
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
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2004-2013First 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)
Oil discovery in Libya
Turkish Petroleum in Iraq
First seismic vessel Barbaros Hayreddin Paşa was purchased
First field purchase in Russian Federation, Baytuhan Project
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Batman District Management72100, Batman / TURKEYPhone : +90 488 213 27 10Fax : +90 488 213 41 49 - 488 213 39 14
Thrace District Management39750, Lüleburgaz / Kırklareli / TURKEYPhone : +90 288 417 38 90Fax : +90 288 417 22 03
Adıyaman District Management02040, Türmüs Yolu Üzeri / Adıyaman / TURKEYPhone : +90 416 227 28 11Fax : +90 416 227 28 07 - 18
Headquartes
District Managements
Subsidiary
International OfficesTurkish Petroleum CorporationSöğütözü, 2180th Avenue, No: 1006100 Çankaya / Ankara / TURKEYPhone : +90 312 207 20 00Fax : +90 312 286 90 00 - 312 286 90 01e-mail : [email protected] : www.tpao.gov.tr
Azerbaijan TP / TPOC / TPBTC / TPSCP Office340, Nizami str, 37000 ISR Plaza, 4th Floor, AZ 1005 Baku - AZERBAIJANPhone : (00 99 412)498 95 26 - 493 14 98Fax : (00 99 412)498 14 35 e-mail : [email protected]
TPOC Libya OfficeTripoli Tower 1, 10th Floor, No: 101 Tripoli - LIBYAPhone : (00 218 21) 335 14 94 - 335 14 96 / 97Fax : (00 218 21) 335 14 95e-mail : [email protected]
TPOC Iraq OfficeWaziriyah. M 301. S 5.-H. 6Baghdad / IRAQ
KazakTurkMunai Ltd. Joint CompanyRamada Plaza Hotel Business Center, 6th floorAbay Ave., 010000, Astana / KAZAKHSTAN Phone : 00 7 (7172) 39 10 25Fax : 00 7 (7172) 39 10 26e-mail : [email protected]
TPOC Afghanistan OfficeBandar Saripul Sarak, 2. Dast-i Rast Manzil, Sheberghan, AFGHANSITANe-mail : [email protected], Turkish Petroleum Distribution Inc.
Söğütözü Ave., No: 27 06520 Ankara / TURKEYPhone : +90 312 218 58 00 Fax : +90 312 287 51 24e-mail : [email protected]
cytasarım / www.cytasarim.com
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Contact Information
Turk
ish P
etro
leum
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ual R
epor
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