2015 Activity Report - Entrepose Groupwebprod.entrepose.com/.../2017/03/Geostock-2015-Activity-Report_B… · P 2_2015 ACTIVITY REPORT GEOSTOCK 50 YEARS ... b Sandia Technologies

2015 ACTIVITY REPORT

50 YEARS OF UNDERGROUND STORAGE EXPERTISE

P 2_2015 ACTIVITY REPORT GEOSTOCK

50 YEARS OF UNDERGROUND STORAGE EXPERTISE

WE HAVE STRONG BELIEF IN OUR FUTURE

GEOSTOCK 2015 ACTIVITY REPORT_P 3

Throughout these fifty years, a single word has summed up the major principles underlying the activities and values of Geostock: CONFIDENCE. Confidence amongst clients and business partners, amongst shareholders, amongst authorities and between management and staff. This is the foundation on which Geostock was built.

Geostock’s fiftieth anniversary was celebrated with two events that brought together 500 employees and clients:

April 9, 2015 in the wonderful venue of the Ecole Nationale Supérieure des Beaux Arts in Paris, where a retrospective of Geostock’s history was presented and followed by dinner.

May 21, 2015 for staff and clients in the South of France, in the imposing surroundings of Carrières de Lumières in Baux-de-Provence, a former stone quarry, which served as the setting for a slide show projected onto the stone walls, tracing the major steps in the life of the company. This was followed by a festive dinner.


A word from the CEO . . . . . . . . . . . . . . . . . . 04International structure and team . . . . . . . 06Key figures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08Full range of services . . . . . . . . . . . . . . . . . . . 10All techniques, all products . . . . . . . . . . . . . 12Innovative solutions . . . . . . . . . . . . . . . . . . . . 14Commitments . . . . . . . . . . . . . . . . . . . . . . . . . 16Worldwide activities . . . . . . . . . . . . . . . . . . . 18Contacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

CONTENTSTHE RESILIENCE OF GEOSTOCK... IS AN OUTSTANDING ASSET WHEN FACING ADVERSE SITUATIONS


A WORDFROM THE CEO

In 2015, the Oil & Gas industry was impacted by low oil prices, resulting in a severe reduction of investment. Activities were also affected by the slowdown in Asian countries in the wake of China. Geostock did, however, manage to steer its way through this difficult context.

Geostock is well established, reaching in 2015 the mark of 50 years of existence. Throughout its long history, Geostock has always focused on the same core business – underground storage – meaning that the group is now undoubtedly considered as a worldwide reference in its field of activity. This is a unique demonstration of the company's ability to adapt itself to a changing context. Geostock's resilience, based on professionalism and dedication of its staff, the confidence the clients have in it, its dual expertise in consulting & engineering and in management & operation and its worldwide presence, is an outstanding asset when facing adverse situations.

Such was the case in 2015, a year which can be ranked as satisfactory: b Geostock SAS demonstrated strong performance,b Sandia Technologies produced outstanding results,b Géométhane, in which Geostock holds a minority

equity, delivered an excellent year,b BCSS, operator of the Jurong Rock Caverns in

Singapore showed a clear round in every respect,b And Geostock de México and Geostock do Brazil,

the two latest arrivals, showed an encouraging start.

Meanwhile: b After a slight rebound in 2014, UGS suffered from

a slack German market and had to adapt its structure to the new conditions,

b Geostock US and Geostock Asia did not perform as expected,

b Unfortunately Geogreen's activities were quite slow in the field of CO₂ storage,

b The Spanish market is extremely sluggish.

Several decisions have been taken: b Geostock Iberia has been closed, in the absence

of activities in Spain,b Sandia Technologies and Geostock US have been

consolidated into the new Geostock Sandia company, and there are great hopes for this new entity.

Geostock is thus well prepared to face the future challenges, particularly in Mexico, where Shalapa LPG underground storage facilities in Veracruz State are under construction, Turkey, where together with its major shareholder Entrepose it is targeting a large-scale underground natural gas storage project, and Brazil where several projects will be initiated in the very near future, not to mention Europe where a large underground storage project is being started close to Milan.

2015 can be seen as a satisfactory year since Geostock held its ground despite the adverse context, as well as taking all necessary measures to be well prepared for the future and to investigate new frontiers. At the dawn of 2016, although we know that the context will continue to be difficult, we are quite confident that Geostock will be successful in all its endeavours.

Jean-Michel NOÉ President and CEO


10%90%

STONORGAZTURKISHBRANCH

BANYANCAVERNSSTORAGE SERVICES

GEOSUD: 50%

CNPASSURANCES:

98%

STORENGY: 50%

IFPEN: 3%BRGM: 1,5%

VTS: 45%JCPL: 20%

VGS: 40%

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

GEOSTOCK GEOSTOCKDE MEXICO

GEOSTOCKASIA

GEOSTOCKDO BRASIL

GEOSTOCKNORTH AMERICA

GEOGREEN GEOSUDUGS

100% 100%

GEOSTOCKSANDIA

GEOSTOCK US FEDERAL SERVICES

100% 100%

GÉOMÉTHANE

100%

INTERNATIONALSTRUCTURE & TEAM

Updated 2016


2 UGS - BERLIN (GERMANY) Matthias HERTER Robert SCHELER Senior Managing Directors

3 GEOSTOCK SANDIA - HOUSTON, TX (USA) Donald STEHLE President and CEO

4 GEOSTOCK DO BRASIL - RIO DE JANEIRO (BRAZIL) Jonathan ROYER-ADNOT Managing Director

5 GEOSTOCK ASIA - (SINGAPORE) Jintang YAN General Manager

4 GEOGREEN - PARIS (FRANCE) Gilles MUNIER CEO

1

1 GEOSTOCK - PARIS (France) MANAGEMENT COMMITTEE From left to right and top to bottomJean-Luc CAMBON Vice President New Developments

Dominique LEBTAHI Director

Pascal BAYLOCQ Executive Vice President

Jean-Michel NOÉ President and CEO

Gilles LE RICOUSSE Vice President Operations

Geostock is a subsidiary of Entrepose Group (Vinci Group) and Total and is established in every continent through its worldwide subsidiaries, offering proximity services to its clients.

2 4

5 6

3

KEY FIGURES

HEADCOUNT PER ACTIVITY

KEY FIGURES

0

20

40

60

80

100

20152014201320122011201020092008

0

3

6

9

12

15

20152014201320122011201020092008

65.1

81 78.7

83.7

88.7

89.7

97.6

84.1

3.1

7.6

11.4

12.2

13.7

11.9

12.4

8.6

OPERATION 58%

ENGINEERING 30%

MISCELLANEOUS 1%

WELL SERVICES 11%

Support

Well services

Engineering

Operation

Miscellaneous

Well services

Engineering

Operation

Miscellaneous

Well services

Operation

Engineering

0 5 10 15 20 25 30 35 40

MISCELLANEOUS

WELL SERVICES

OPERATION

ENGINEERING

LIQUEFIED HYDROCARBONS 17%

OTHERS 23%

LIQUID HYDROCARBONS 21%

NATURAL GAS 39%

OPERATION 34%

ENGINEERING 40%

MISCELLANEOUS 14%

WELL SERVICES 12%

BACKLOG

83.9 M€end 2015

TURNOVER

84.1 M€

CURRENT OPERATING INCOME

+2.9 M€

WORKFORCE

550people

Tuz Golu/ Turkey

GROUP CONSOLIDATED TURNOVER (M€)

CASH AFTER LONG TERM DEBTS (M€)

KEY FIGURES

0

20

40

60

80

100

20152014201320122011201020092008

0

3

6

9

12

15

20152014201320122011201020092008

65.1

81 78.7

83.7

88.7

89.7

97.6

84.1

3.1

7.6

11.4

12.2

13.7

11.9

12.4

8.6

OPERATION 58%

ENGINEERING 30%

MISCELLANEOUS 1%

WELL SERVICES 11%

Support

Well services

Engineering

Operation

Miscellaneous

Well services

Engineering

Operation

Miscellaneous

Well services

Operation

Engineering

0 5 10 15 20 25 30 35 40

MISCELLANEOUS

WELL SERVICES

OPERATION

ENGINEERING


OTHERS 23%


NATURAL GAS 39%

OPERATION 34%

ENGINEERING 40%

MISCELLANEOUS 14%

WELL SERVICES 12%

KEY FIGURES

0

20

40

60

80

100

20152014201320122011201020092008

0

3

6

9

12

15

20152014201320122011201020092008

65.1

81 78.7

83.7

88.7

89.7

97.6

84.1

3.1

7.6

11.4

12.2

13.7

11.9

12.4

8.6

OPERATION 58%

ENGINEERING 30%

MISCELLANEOUS 1%

WELL SERVICES 11%

Support

Well services

Engineering

Operation

Miscellaneous

Well services

Engineering

Operation

Miscellaneous

Well services

Operation

Engineering

0 5 10 15 20 25 30 35 40

MISCELLANEOUS

WELL SERVICES

OPERATION

ENGINEERING


OTHERS 23%


NATURAL GAS 39%

OPERATION 34%

ENGINEERING 40%

MISCELLANEOUS 14%

WELL SERVICES 12%

GROUP SALES PER ACTIVITY (% OF GROSS INCOME)

GROUP SALES PER PRODUCT LINE (% OF GROSS INCOME)

KEY FIGURES

0

20

40

60

80

100

20152014201320122011201020092008

0

3

6

9

12

15

20152014201320122011201020092008

65.1

81 78.7

83.7

88.7

89.7

97.6

84.1

3.1

7.6

11.4

12.2

13.7

11.9

12.4

8.6

OPERATION 58%

ENGINEERING 30%

MISCELLANEOUS 1%

WELL SERVICES 11%

Support

Well services

Engineering

Operation

Miscellaneous

Well services

Engineering

Operation

Miscellaneous

Well services

Operation

Engineering

0 5 10 15 20 25 30 35 40

MISCELLANEOUS

WELL SERVICES

OPERATION

ENGINEERING


OTHERS 23%


NATURAL GAS 39%

OPERATION 34%

ENGINEERING 40%

MISCELLANEOUS 14%

WELL SERVICES 12%

KEY FIGURES

0

20

40

60

80

100

20152014201320122011201020092008

0

3

6

9

12

15

20152014201320122011201020092008

65.1

81 78.7

83.7

88.7

89.7

97.6

84.1

3.1

7.6

11.4

12.2

13.7

11.9

12.4

8.6

OPERATION 58%

ENGINEERING 30%

MISCELLANEOUS 1%

WELL SERVICES 11%

Support

Well services

Engineering

Operation

Miscellaneous

Well services

Engineering

Operation

Miscellaneous

Well services

Operation

Engineering

0 5 10 15 20 25 30 35 40

MISCELLANEOUS

WELL SERVICES

OPERATION

ENGINEERING


OTHERS 23%


NATURAL GAS 39%

OPERATION 34%

ENGINEERING 40%

MISCELLANEOUS 14%

WELL SERVICES 12%

GEOSTOCK 2015ACTIVITY REPORT_P 9


FULL RANGE OF SERVICES ADAPTED TO CUSTOMER NEEDS

Loenhout / Belgium © Fluxys Belgium / P. Henderyckx


Geostock is an engineering group and world leader in underground storage. It provides solutions to store liquid, liquefied and gaseous hydrocarbons but also other products such as effluents, compressed air, CO2 or hydrogen.

SCOPE OF SERVICES

Thanks to its network of companies around the world, Geostock is able to propose a global offer throughout the full storage life cycle: b Consultancy & engineering, project management, b Construction management,b Well services, b Operation & maintenance, as well as a targeted offer tailored to the needs of the customer, who receives its support right from the start of the project.

The engineering and operational synergy specific to Geostock means that its services are constantly being improved in the design and operation of storage facilities.

ECONOMIC STUDIESMarket survey and evaluation, planning studies, economic feasibility assessment, due diligence, business model evaluation.

DESIGNProject planning, site selection, feasibility studies, exploration, reservoir engineering, permitting, conceptual & basic design, modelling.

CONSTRUCTION Engineering, detailed design, tendering, procurement, construction management, commissioning and start-up.

DRILLING, WORKOVER AND SOLUTION MINING Drilling, well logging, well completion, workovers, solution mining, brine, CO₂ and effluent disposal in deep aquifers, organization of leaching plants.

OPERATIONStorage facility management, operation & maintenance, technical assistance to operation, organisation and safety audits, training of operators, operation & maintenance procedures and documentation.

MAINTENANCE AND REVAMPING Maintenance, revamping, upgrading to new regulations and standards, performance enhancement, risk analysis, Well Integrity Management, Asset Integrity Management.

DECOMMISSIONING, CLOSURE AND ABANDONMENT

A GLOBAL OFFER THROUGHOUT THE FULL STORAGE LIFE CYCLE


MULTI-DICIPLINARY EXPERTISEUnderground Storage is Geostock’s core activity. Whatever the products stored or the techniques used, Geostock’s expert knowledge enables it to provide high quality services and tailor-made solutions at the forefront of technology in the fields of: b Subsurface technologies (Geology, Geophysics,

Geomechanics, Hydrogeology, Reservoir Engineering, Civil Engineering, Mining and Leaching),

b Drilling and well services,b Surface technologies (General installations, Process,

Pipelines, Electricity/Instrumentation, Control Systems),b Management, Operation & Maintenance,b Closure and abandonment of storage sites.

The combined skills and expertise of the multi-disciplinary teams of its worldwide companies enable the group to offer its services in all types of underground storage facilities for a full range of products.

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

HIGH QUALITY SERVICES AND TAILOR-MADE SOLUTIONS

Geosel Manosque / France


ALL TECHNIQUES,ALL PRODUCTS

A network of skills dedicated to your project with fifty years of know-how and expertise in underground storage technologies.

LEACHED SALT CAVERNSSalt cavern storage requires the presence of a significant salt deposit. The cavern is created by dissolving the salt in fresh water (leaching). Its shape and volume are established by sonar. The caverns are elongated in shape, several hundred meters high and several tens of meters in diameter. They are usually located at a depth of between 200 and 2,000 meters and may have a volume of several hundred thousand cubic meters.

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

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

It is usually located at a depth of between 500 and 2,000 meters. During the storage phase, the gas is compressed and injected into the reservoir in gaseous state through a series of production wells. During recovery, the gas is withdrawn under the effect of its own pressure.

The equipment on the surface includes in particular the compression, processing and metering facilities. Monitoring wells are used to check the position of the gas and the tightness of the reservoir.

MINED ROCK CAVERNSA mined cavern consists of one or more tunnels carved out of the rock (limestone, chalk, granite, etc.). The tunnels are usually located at a depth of 50 to 200 meters. Their tightness is based on the principle of hydraulic containment, which defines the depth at which the cavern needs to be located in order for the water naturally contained in the surrounding rocks to constantly flow towards the cavern at all points, thus containing the product inside the storage cavern.

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

STORED PRODUCTSNatural gas,Liquid hydrocarbons,Liquefied hydrocarbons,Compressed air,Hydrogen,Effluents.

STORED PRODUCTSNatural gas,Compressed air,CO2Effluents.

STORED PRODUCTSNatural gas (compressed or liquefied),Liquid hydrocarbons,Liquefied hydrocarbons.


INNOVATIVE SOLUTIONSTo improve Underground Storage Performance, Reliability & Safety.

THREE PRIORITY THEMES Efforts made by R&D made it possible for Geostock to develop three new products in 2015 which are now available to its clients: b A thermodynamic simulation digital model

for salt leached caverns, b An asset integrity management

methodology and,b A new approach to induced seismicity

risk assessment.

These three star products are part of the priority themes selected by Geostock for the coming years: HSE and Risk Management, Asset Integrity management (AIM) and Performance Management.

SIMULATION OF GAS THERMODYNAMICS IN SALT CAVERNSGUSTS V2: a significant improvement in thermodynamic simulation of gas storage in salt leached caverns.

Launched in 2014, this development program led to the production in 2015 of a controlled and efficient version of a new simulation tool called GUST V2. This software is used to inventory the gas present in the cavern, to determine how much gas can be injected or withdrawn and at what rate, and to optimize the quantity of stored gas and the cavern energy capability. In terms of performance, this software provides good accuracy, short calculation times, a complete range of situations, ease of use and the possibility of testing simulation scenarios as well as full and relevant reporting.

GEOSTOCK REMAINS AT THE CUTTING EDGE OF TECHNOLOGY

Mined cavern 3D modelisation


ASSET INTEGRITY MANAGEMENT SYSTEMThe AIM methodology developed by Geostock is inspired by practices used in oil wells. We have adapted this methodology to underground storage, and more precisely to storage in salt leached caverns and porous environments.

Initiated in 2013, the approach has been improved every year. Based on three pillars (data, assessment and documentation), the method is iterative and makes it possible to provide a complete view of installation conditions. It is based on various international standards or recommendations: API, SPE, SMRI, OGP, etc. Primarily a risk assessment tool for operators, Geostock’s AIM approach also anticipates the tightening of regulations covering underground storage.

ANALYSIS AND MITIGATION OF INDUCED SEISMICITYThe Castor underground storage facility in Spain caused Geostock to conduct research into induced seismicity. In 2015 Geostock decided to invest in new analysis tools based on its decades of experience in the seismic monitoring of underground storage. Named A-MINDS (Analysis and Mitigation of Induced Seismicity), this new approach developed by Geostock combines observation (seismic monitoring), analysis (high performance statistical tools, modelling tools) and feedback on the operating mode (operating rules). The resulting toolbox developed in 2015 is unique in the world. Once again, Geostock has given its clients the possibility of anticipating changes to regulations that may have far reaching consequences.

Alongside these three star products, Geostock has continued to innovate in various aspects of its core business (flows in fissured rocks, blow-out, gas-brine exchanges, surface equipment, well equipment, etc.) and on its working tools (databases, software watch, regulatory watch, etc.).

In addition to the themes identified at the Group level to which it has contributed, UGS has continued its research on:b Automated casing and tubing welding,b Continuous stress measurement systems

for casing and tubing in salt leached cavern operating wells,

b Energy storage related to renewable energy programs.

Our subsidiary Geogreen was a partner in the R&D collaborative project CO2DISSOLVE R&D launched in January 2013 and completed at the end of 2015. Coordinated by BRGM, this project was part of the SEED (Efficient and Decarbonized Energy Systems) program of the ANR (French National Research Agency). The innovation of this project lies in the synergy between geothermal doublet and CO₂ storage. The future phase of the project is part of the Geodenergies French initiative, which groups several Research and Academic entities together with industrial stakeholders, among which is the Entrepose Group. Geodenergies is aimed at creating added value in the field of energy related to the subsoil.

Control room Geosel / France


COMMITMENTS

All Group companies have together committed to Quality, Health, Safety, Security and Environmental Awareness.

QUALITY MANAGEMENTGeostock systematically applies a Quality Management System compliant with the ISO 9001 standard, which is essential to the group’s success and future. The implementation of this system aims to comply with the following:b Client satisfaction,b General and client safety,b Respect for the environment and,b Staff motivation.

In its pursuit of continuous improvement and progress, the sharing of best practices has gradually been implemented within the Group.

The simplification of our management system continued throughout 2015 and will be even more marked in 2016 when the new version of the ISO 9001 standard is implemented.

GEOSTOCK AND UGS ARE ISO 9001 QUALITY CERTIFIED

Géogaz / France Fire safety system


A core value and a priority policy for Geostock in all its activities.

HEALTH, SAFETY, SECURITY AND ENVIRONMENTAL PROTECTION

TWO GEOSTOCK GROUP TEAMS REWARDED FOR THEIR HSE INITIATIVES

Integration of the use of biodegradable sticks by Geostock team at worksites:Award for the initiative of replacing the PVC sticks used to identify the numerous borings along a pipeline by a biodegradable material based on corn starch. This initiative helps to protect the environment as part of a waste reduction policy as well as reducing costs during removal operations.

Safety Net Innovation by UGS team:UGS has been awarded the Vinci Europe Innovation prize as well as the Entrepose HSE Challenge for their "Safety Net" invention. While removing pipes from a salt cavern, a mineral coating deposits on the pipes and may fall on the staff present on the rig platform. The “Safety Net” system consists in wrapping the tubings with a net that prevents the deposits from falling down. This invention contributes to staff safety, and also reduces exposure to noise which was due to pipe cleaning.

Biodegradable sticks

Safety Net

Staff committed to HSE values:Our excellent HSE performance is mainly due to our staff, their professionalism, their care and their commitment to HSE, which contribute to establishing our Group workforce. This was recognized in 2015 with safety awards won by two Geostock employees who participated in the Entrepose Health, Safety & Environment Challenge and one from UGS who took part in the Vinci Innovation Prize.

In 2015, we succeeded in achieving our permanent HSE objectives:b Zero Lost Time Accident, b Zero Major Incident b Zero Environmental Damage.

Supported by a strong HSE Management System: Based on an ongoing process of constant improvement.

And a professional HSE Coordination Team: Involved in the various Geostock companies working in design, construction and operational stages, for example:

b HSE in engineering & construction: continuous development of a system to integrate HSE matters in all project processes.

b SAFETY at operation plants: contingency plans updated and tested to deal with any hazardous situation occurring on a site operated by Geostock. Three drills were held by activating the Crisis Centre at Geostock headquarters , one of which in collaboration with media training.

b SECURITY at operation plants: verification and reinforcement of all plants with specific measures.

b ENVIRONMENT during pipelines construction: Geostock won the specific Entrepose Environmental Challenge Award with a biodegradable stick to identify pipeline removal operations.


WORLDWIDE ACTIVITIES

Algeria Argentina Azerbaidjan Australia Belgium Brazil Bulgaria Canada China France Germany Georgia India Italy

Japan Mexico Morocco Netherlands Portugal Singapore South Korea Spain Turkey United Kingdom United States of America

PRESENCE IN 25 COUNTRIES IN 2015



NATURAL GAS

The Natural Gas underground storage market is currently focused on mature countries but it is also developing in emerging countries.

IN ARGENTINA,in the Chubut province (Patagonia), and within the framework of the technical operational assistance contract in force since 2002 on the DIADEMA storage site for YPF, Geostock continued to develop the 3D dynamic model of the storage facility with a view to extending its capacity from 100 to 200 Msm3.

IN BRAZIL, Geostock continued to provide reservoir engineering services for SANTANA OIL&GAS as part of natural gas storage in the depleted SANTANA field, in collaboration with our local subsidiary Geostock Do Brasil.

IN GERMANY, UGS was awarded two operating contracts for the KATHARINA project in BERNBURG for EPG -Joint Venture between VGS (Germany) and GAZPROM (Russia) -as well as for the JEMGUM storage facility for ASTORA.

It also provided various drilling and works activities on wells in BAD LAUCHSTADT, OHRENSEN and STASSFURT and

continued to operate the EPE storage facility for ENECO.

IN GEORGIA, for GEORGIAN OIL AND GAS CORPORATION (GOGC), Geostock won an international tender for a feasibility study for the conversion of a depleted oil field into a natural gas storage facility in SAMGORI SOUTH DOME. The study, which began mid-2015, will continue into 2016, in collaboration with UGS.

IN AZERBAIDJAN, in 2014 Geostock signed a contract with SOCAR (STATE OIL COMPANY OF AZERBAIDJAN REPUBLIC) for a pre-feasibility study for a natural gas storage facility in salt leached caverns which was completed in 2015.

IN TURKEY, the building assistance activities on the TUZ GOLU underground storage site continue for TIANCHEN ENGINEERING CORPORATION (TCC) which won the EPC contract to build twelve salt leached caverns of a total working volume of 1 Billion M3. Since 2014, Geostock has

provided leaching assistance and various study services. The project owner is BOTAS, the national gas transport company.

IN FRANCE, in MANOSQUE for GEOMETHANE underground natural gas storage in salt leached caverns, Geostock continues to work at project management level for all the ongoing work at this site.

Geostock is continuing its operational assistance activities for many storage facilities such as the LOENHOUT aquifer natural gas storage facility for FLUXYS.

IN THE UNITED STATES, the services provided by our subsidiary Geostock US (now Geostock Sandia) in 2015 mainly covered geological studies and reservoir studies, more especially in Texas and Louisiana, as well as in CANADA, in NOVA SCOTIA, for a natural gas storage facility being developed in salt leached caverns.

CORNEGLIANO LAUDENSE, ITALY FOR ITAL GAS STORAGE S.p.A (IGS) in the Lodi province – Lombardy, 30 km South West of Milan, within the context of the conversion of a depleted gas field into natural gas storage.

Geostock is the project owner’s engineer for the underground part of this future storage facility. The horizons of the underground reservoir are located at a depth of over 1300 m under a sealed clay cover over 500 m thick.

The storage facility, which will have a working capacity of 1.3 billion m3, with a maximum injection productivity and production of 28 million m3 per day, is to be operated using 14 wells in two clusters.

Starting from 2016, Geostock will supervise the drilling of the 14 wells and the update of the static (geological) and dynamic (reservoir) models.


NATURAL GAS

Diadema / Argentina


LIQUEFIEDHYDROCARBONS

2015 was the year for starting new projects, both in North America and in Asia.

SHALAPA (Veracruz), MEXICOFollowing the 2014 signature of a contract between PEMEX and CYDSA to build and operate underground LPG storage in salt leached caverns, Geostock's involvement increased in 2015 with a view to a long term relationship with CYDSA.

Geostock provided engineering services for the underground part (cavern and well) and project management assistance which will continue until the planned commissioning of the installations in 2017.

Entrepose won the EPC contract to build the surface installations, which made it possible to have a first project in Mexico benefiting from the combination of different Group trades.

In parallel, Geostock was awarded a contract through its Geostock de Mexico subsidiary to operate the site for twenty years once it has been commissioned.

Geostock also provides CYDSA assistance in the monitoring of the leaching of new caverns that will be converted to storage in the future.

IN CHINA, Geostock, through its subsidiary Geostock Asia, has continued to work on various projects in the country, including the commissioning of the mined storage project of YANTAI for WANHUA, the completion of the construction of the QINGDAO project for QINGDAO DRAGON GAS and the completion of the Basic Design for a mined storage project in NINGBO for ORIENTAL ENERGY for which investigation works has already been carried out.

IN FRANCE, Geostock has continued to work in PETIT-COURONNE near ROUEN for SHELL, and in SENNECEY-LE-GRAND for BUTAGAZ.

The company also provides operational management for LPG storage in mined caverns for GEOGAZ in LAVERA.

AND,Geostock also pursued its technical operation assistance activity for underground storage in the following countries: AUSTRALIA, INDIA, JAPAN, PORTUGAL, SOUTH KOREA, UNITED KINGDOM, and UNITED STATES.

Shalapa/Mexico Civil works


LIQUEFIEDHYDROCARBONS

Inchon / South Korea Mined Rock Cavern


LIQUID HYDROCARBONS

The worldwide business of underground storage of liquid hydrocarbon essentially involves the securing of Strategic Petroleum Reserves, mainly in Asia.

IN SINGAPORE, Geostock continued its prime contractor assistance activities, on behalf of JTC on the JURONG ROCK CAVERNS project with the signature in 2015 of a contract to study increased export capacities and a study on product contamination. In parallel, the assistance to operation of the first two commissioned caverns continued through BANYAN CAVERNS STORAGE SERVICES located in Singapore in which Geostock has a 35% share.

IN CHINA, the group confirmed its presence in the two projects relating to the Chinese Strategic Reserve.

IN FRANCE, Geostock provided project management and delegate project owner missions in the initial conversion to diesel of a SAGESS pipeline and modifications to the relevant surface installations.

Geostock is also continuing the management of storage operations on the GEOSEL site in MANOSQUE which includes 30 salt leached storage caverns.

EPE SITE, GERMANY UGS carried out investigative work and rehabilitation work on crude oil salt leached caverns reserved for strategic storage and carried out tests for NWKG, operators of the German strategic reserve.

UGS has thus shown its ability to work successfully on ageing installations and to implement Well Integrity Management methodology.

Jurong/Singapore


OTHERS

Strong focus has been placed on effluent disposal and aging facilities.

IN USA, In 2015 our US subsidiary Sandia Technologies (now Geostock Sandia) –positioned on core activities in injection wells for disposal, CO2 sequestration and product storage - carried out several projects mainly for chemical manufacturing clients.

Consulting: In Texas and Louisiana for the renewal of permits on existing and new wells.

The company has been awarded a contract by the Department of Energy (DOE) for a major Carbon Capture Sequestration investigative project looking especially at carbon dioxide injected into deep porous media formations.

Well operations: In Texas, Louisiana, Mississippi and Oklahoma, involving:b The major rework of one injection well,

preventing loss of mechanical integrity,b On a gas facility concerning the

abandonment on two storage caverns, the running of numerous gamma ray density logs, perforation of several wells for product recovery and the cleanout of one salt water injection well.

b Salt water injection well.

Mohammedia/Morocco


CONTACTS

FRANCE

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

Jean-Michel NOÉPresident and CEOPascal BAYLOCQExecutive Vice President

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

Gilles MUNIERCEO

GERMANY

UGS GmbHBerliner Chaussee 215749 MITTENWALDE Tel.: +49 337 64820Fax: +49 337 648280www.ugsnet.de

Matthias HERTERRobert SCHELERSenior Managing Directors

SINGAPORE

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

Jintang YANGeneral Manager

TURKEY

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

Haluk AYDEMIRBranch Manager

USA

GEOSTOCK SANDIA, LLC8860 Fallbrook DriveHOUSTON, TEXAS 77064Tel.: +1 (832) 286-0471Fax: +1 (832) 286-0477

Donald STEHLEPresident and CEO

BRAZIL

GEOSTOCK DO BRASIL LtdaAvenida Rio Branco, n°20, 3° andar, centro, Cidade do Rio de JaneiroRJ, CEP: 20090-000BRAZILTel.: +55 21 9 8039 9090

Jonathan ROYER-ADNOTCountry Manager Brazil


2, rue des Martinets - CS 70030 • 92569 Rueil-Malmaison Cedex • FranceTel.: +33 1 47 08 73 00 • Fax: +33 1 47 08 73 73www.geostockgroup.com De

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Documents

2015 Activity Report - Entrepose Groupwebprod.entrepose.com/.../2017/03/Geostock-2015-Activity-Report_B… · P 2_2015 ACTIVITY REPORT GEOSTOCK 50 YEARS ... b Sandia Technologies