Transcript STATOIL TURKEY - YASED Uluslararası Yatırımcılar Derneği

A Supplier’s Insights on
“Invest-ability”
of
the Turkish Gas Market
YASED February 22, 2007
Per Myrvang, Statoil Turkey GM
This is Statoil
Integrated oil and
gas company
represented in 33
countries.
Global Norwegian
energy champion to
be the world’s largest
offshore operator w/
Hydro merger.
HQ Stavanger,
Norway. 33,000
employees with
Hydro.
3rd largest seller of
crude oil +substantial
supplier of natural
gas to Europe.
Turkey is a “key” country for Statoil
Large market for LPG –Statoil one of the leading suppliers
Core market for our Caspian resources –largest market for Shah Deniz gas
Phase I @ 6.6 bcm/p.a.
“Key” for transit in both BTC Oil and Shah Deniz Gas for markets beyond
Turkey
Statoil’s strategic agenda
Deregulation
awakens
potential
Continued growth on the
NCS
A unique gas position
Strong international
platforms
Strengthened downstream
Need for
private
capital
Security of Gas Supply to Europe
There is no supply shortage
 Gas reserves in Europe, Central Asia, Caspian
Region, Middle East and Africa have increased
over the last few years.
Statoil as a gas producer and marketer is more
concerned that the high level of demand will
continue
 increasing competition from coal and nuclear in
the power sector
Regulations Must Meet Market Needs
Instead of worrying over long term supplies,
we should worry about short-sighted politics
and regulations—both in transit and consumer
countries.
For instance, EU regulations on gas marketing
are not in harmony with PSA regulations in
many producing countries.
Gas Dis-Co’s Tendering Process
Implications for Gas & Safety
Local gas distribution tenders tangent to zero margin
Long Term Business Safeguard reputation of gas as
clean, safe & RELIABLE fuel requires commitment &
competence  COST FACTORS
Lowest bid is not necessarily conducive to SAFETY first
operations.
Experience
Investment Horizon
People Focus
should be prioritized
Investments in Transit Pipelines
Best solution will be found by:
Happy Producer <<---------->>Happy Customer
Happy Producer will require the understanding of all
political and regulatory frameworks in the region
Only then will the Producer invest in necessary
transit arrangements