1

Contents

SOCAR Global and SOCAR Turkey

STAR Refinery

Petkim

Human Resources

2

SOCAR (State Oil Company of Azerbaijan Republic) is an integrated NOC with business in chemicals

Exploration & Production Main export pipelines Refining &

petrochemicals Supply logistics & trading

Marketing and distribution

▪  Oil: –  ACG –  Oil rocks –  Onshore oilfields –  Various supporting

industrial activities ▪  Gas:

–  Shah-Deniz –  Absheron –  Umit

▪  Other offshore fields in the Caspian basin

▪  Oil: –  NREP –  WREP –  BTC

▪  Gas: –  Baku-Mozdok –  SCP and SCPx –  TANAP –  TAP

▪  Refining: --Heydar Aliyev refinery

▪  Petrochemicals: –  Azerikimya –  SOCAR Polymer –  SOCAR GPC

▪  Azerigas Processing

▪  SOCAR Trading: –  Switzerland –  UK –  Singapore –  UAE –  Canada

▪  Various terminal logistics, e.g., –  Kulevi –  Fujairah –  Ust-Luuga

▪  Oil product marketing –  Azerbaijan –  Georgia –  Ukraine –  Romania –  Switzerland

▪  Gas distribution –  Azerbaijan –  Georgia

SOCAR Turkey and its subsidiaries detailed on the next page

3

SOCAR is committed to further advance its synergic, integrated downstream business presence in Turkey

SOCAR has already invested/committed significantly to Turkey…

▪  Expansion in fuel distribution ▪  Further completion of logistics

infrastructure ▪  Growth in promising Turkish

petrochemicals market ▪  Integration/synergy projects on

commercial and operational topics

…and will further advance its integrated downstream business

Investments to Turkey US$ billions, 2008-2018 total planned1

9.5 Gas pipeline (TANAP)

5.72

18.1 Total

2.4

0.5

Petchem (Petkim acquisition and investments)

Port (Petlim)

Refinery (STAR) ▪  STAR refinery will: –  Capture diesel and jet

opportunity in Turkey –  Create synergies within

large downstream complex

1 With partnerships 2 initial investment

4

PETKİMWindPowerPlant

STARRefinery

PETKİM

PETLİM

SOCARTurkeyAkaryakıtDepolamaA.S

EfficientlyIntegratedSOCARAliağaPeninsula

‘SpecialSecurityZone’‘SpecialProjectZone’superceedesmostofthelocalandregularprocesses

Feedstockcosts↓LogisPccosts↓Sustainablequality↑Inventorycosts↓

Sharedservicessuchas:FirefighPng,maintenance,laboratory,R&D,IT,watersupplyandsecurity

5

SOCAR has a growth-oriented geographic coverage, with a range of activities covering all of the value chain

SOCAR's regional presence is intensive in Europe with a focus on Black Sea basin… … and strengths are on upstream, trading and piping

Activities Assessment

Refining

Petrochemicals

Upstream

Pipeline

LNG & CNG

Marketing1

Pipeline

Refining

Petrochemicals

Gas

Exploration & Production

Switzerland Romania

Ukraine

Turkey

Georgia

Azerbaijan

1 Wholesale and/or distribution 2 Trading offices in UAE, Switzerland, Singapore, UK, Canada

Marketing1

Trading2

Greece Albania

Italy

6

Contents

SOCAR Global and SOCAR Turkey

STAR Refinery

Petkim

Human Resources

7

Brief Description Of Refinery

Capacity 10 mtpa (214,000 bbl/day )

Configuration Deep Conversion (Coking)

Refinery Complexity NCI: 9.0

Design Basis Kirkuk (50%) and Iran Heavy (50%)

Crude Processing Range 28-36 API

Storage Capacity 1,630,000 m3 (Nominal)

CO2 Footprint 2.3 mtpa (30.56 kg/barrel)

Initial Investment value USD 5.7 billion

8 8

STAR Site View- 2014

PETLİM

TOTAL AREA – 2,81 mio m2 (281 Ha)

9

STAR Current Project Status

Text

Coke drums

Kerosene hydrotreater

Refinery marine terminal

HC / DHT feed tanks

Cooling tower and utilities

Crude/Vacuum Distillation Unit

EPC Progress (Mar’17)

Engineering: 99.9%

Procurement: 99.0%

Construction: 72.6%

Overall: 86.9%

10

STAR Site View– 2017

11

MotorFuels

Diesel 4,770

JetFuel 1,625*

LPG 320

FeedstocksforPetrochemicals

Naphtha 1,520

Reformate 1,005

Others

PetroleumCoke 691

Sulfur 159

TotalProduct 10,089

FuelGas/Loss 453

*Withflexibilitytoconvertupto1,000ktpaofJetFueltoDiesel

Feedstocks

CrudeOil 10,277

NaturalGas 265

Total 10,542

Original Production Plan kton/year

12

CDUU-100

VDUU-100

SGPU-110 NHT

U-120

CCRU-160

KHTU-130

DHTU-140

HCUU-150

DCUU-190

SRCTU-410

UGPU-116

URCTU-415

HGUU-450

REFINERYSIMPLEFLOWDIAGRAM

SRUU-430

NG LPG320KTA

LIGHT NAPHTHA1,520KTA

REFORMATE1005KTA

JET A-11,625KTA

ULSD4,770 KTA

SULPHUR159KTA

PETCOKE691KTA

CRUDEOIL

13 13

Products RefineryProductm3 TerminalProductm3 FutureExpansionm3 TotalPlannedm3

Diesel 184.300 141.500 173.600 499.400

Jet 70.000 25.400 67.000 162.400

Naphtha 193.000 - 193.000

Reformate 81.800 - 67.000 148.800

LPG 18.900 45.000 63.900

FuelOil - - 80.000 80.000

Liquidsulphur 1.600 - 1.600

Gasoline - 24.500 52.000 76.500

TOTAL 549.600 236.400 439.600 1.225.600

Intrm.Products 439.500 439.500

Crudeoil 637.700 240.000 877.700

TOTAL 1.626.800 236.400 679.600 2.542.800

OperationStorageCapacitiesm3

RefineryFeedstockm3

RefineryIntermediateFeedstockm3

Jedy1 :35,000–165,000DWTCrudeoil,dieselJedy2 :5,000–35,000DWTDiesel,mixedxylenes,lightnaphtha,reformate,jetfuel

Jedy3 :1,000–35,000DWTLPG,reformate,mixedxylenes,diesel,jetfuel

Jedy :1,000–40,000DWTDiesel,jet,gasolineGantry :8Gantry(4Top,3BoVom,1HybridType)

TankCapacity

Refinery(Un)LoadingCapacity

Terminal(Un)LoadingCapacity

Storage and Logistics System

14 30

Sept

embe

r 10

2008

July

23

2010

October 25th 2011

Dec

embe

r 5 2

012

May

20

2013

Dec

embe

r 2o

2012

June

4

2008 2010 2011 2012

Febr

uary

2

012

2013 2014

June

6

2015 2016 `

STAR Rafineri AŞ was founded STEAŞ founded STAR Rafineri A.Ş. in order to eliminate Turkey’s raw material import needs and to put on the market refinery products which are not manufactured in Turkey.

Groundbreaking ceremony of STAR Refinery was performed The groundbreaking ceremony of STAR Refinery, which is known as the biggest localization project in Turkey and the greatest investment made at a single point, was performed. Azerbaijan Republic President İlham Aliyev and Turkish President Recep Tayyip Erdoğan attended the ceremony.

First investment incentive certificate goes to SOCAR Turkey First “Strategic Investment Incentive Certificate” of Turkey was given to SOCAR Turkey. The amount of investment that is connected to incentive certificate is 6,6 billion TL.

NTP was given to EPC Consortium.

STAR refinery project finance was awarded " Best refinery finance of the year" and Best

refinery finance of the world"

Finished engineering and procurement scope over 99% and progressed construction over 60%

The biggest and the longest-term project financing credit agreement in the history of

Turkish real sector

Signatures were held for STAR Refinery financing The biggest and the longest-term project financing credit agreement, with the value of 3,29 billion dollars, in the history of Turkish real sector had singed. Project financing package is a consortium of 23 banks as ; Exim banks of USA, Japan, Korea, Spain and Italy and 17 commercial and development banks from all over the world, one local bank.

Finished extensive site preparation works over 90%

EPC Consortium was selected

Excavation work began

License obtained for STAR Refinery The required construction and management license for STAR Refinery, which was going to be built by SOCAR in Petkim Peninsula with a capacity of 10 million tones, was obtained from the EMRA

Signatures with EPC Consortium were put for STAR Refinery Four giant companies signed the EPC consortium for the construction, engineering and procurement processes of STAR. Refinery will be constructed by Consortium of Spanish Tecnicas Reunidas, Italian Saipem, South Korean GS Engineering & Construction and Japanese Itochu firms.

15

Contents

SOCAR Global and SOCAR Turkey

STAR Refinery

Petkim

Human Resources

16

PetkimistheFirstandOnlyPetrochemicalFirminTurkey

51Years

20km2

2500TheTeam

50+Products

15Plants6UPlity

500Ships3MTons

The16thBiggestFirminTurkey

90,000TonsofWaterPerDay

2500Clients

1985

ProducPonCapacity20163.6MT

17

MevcutYalrımlar

PetlimPort:•  1.5millionTEUcontainerhandlingcapacity•  42hectaremainportarea•  8hectareoff-dockserviceareaterminalport

•  APMTandPetlim(Petkim’s70%subsidiary)•  Revenuesharingagreementforthe28yearsofthe

operabonalperiod

•  GoldmanSachshaspurchased30%stakeinPetlimforatotalconsiderabonofUS$250mnin2015

RES:

•  Windpowerplantwithatotalcapacityof51MW

•  200GWhelectricitygenerabonperannum

18

Ø  MajoritystakeheldbySOCARTurkey

Ø  TheonlypetrochemicalcompanyinTurkey,foundedin1965

Ø  15plantsand6auxiliaryplantsonatotalareaof20km2

Ø  Havingitsownport,dam,powerplantandwastetreatmentunits

Ø  Producboncapacity:3.6MTwith87%capacityublizabonin2015

Ø  Abroadproductporgolioincludingmorethan50products

Ø  Initsproductporgolio,approximately20%marketsharewitharevenueof1.6BUSDin2015

Ø  Recentlystrongfinancialperformanceabovethemarketandpeeraverage

Capacibes(T/Y)PVC150,000LDPE350,000HDPE96,000PP144,000

Capacibes(T/Y)MEG89,000ACN90,000PTA105,000

Capacibes(T/Y)CHLORINE

100,000VCM152,000PA49,000

MB 10,000PlasbcProducts 4,000Power(MW) 226

Capacibes(T/Y)ETHYLENE588,000Propylene240,000C4140,000Py-Gas390,000BENZENE150,000P-X136,000O-X50,000

About Petkim

Revenue4.532BlnTL

2015

EBITDA%14.6

NetProfit%14.1

Revenue4.532BlnTL

2016

EBITDA%19.6

NetProfit%16.1

19

Aliaga Petrochemical Complex (Petkim) flow chart

Vinyl Chloride Monomer (VCM) ▪  VCM 152,000

Ethylene ▪  Ethylene 588,000 ▪  Propylene 305,000 ▪  C4 152,000 ▪  Py-Gas 407,000 ▪  Aromatic Oil 95,000 ▪  Fuel Gas, H2 370,000

Aromatics ▪  Benzene 150,000 ▪  Orthoxylene 47,000 ▪  Paraxylene 140,000 ▪  Toluene 16,000 ▪  C5 Mixture 80,000 ▪  Aromatic Naphtha 380,000 ▪  Heavy Aromatics 45,000

Sales

Caustic (100%) 100,000

PVC 150,000

LDPE-T 160,000

LDPE 178,000

HDPE 96,000

Salt 240,000

Raw materials

Ethylene 78,000

FCC Gas 60,000

LPG 160,000

Naphtha (WSRN + HSRN) 2,200,000

HCI ▪  HCI 27% 18,000

Polyvinyl chloride (PVC) 150,000

Low density polyethylene (LDPE-T)

Low density polyethylene (LDPE) ▪  LDPE (Autoclave)

190,000

Plastic processing ▪  Masterbatch

10,000

High density polyethylene (HDPE)

Ethylene Oxide/ Ethylene Glycol (EO/ EG) 89,000 MEG

Polypropylene (PP) 144,000

Acrylonitrile (ACN) 90,000

Phthalic Anhydride (PA) 49,000

Pure Terephthalic Acid (PTA) 105,000

Ammonia 47,000

WSRN 1,600,000

HSRN 600,000

Caustic

Chlorine 100,000

Ethylene 79,000

Ethylene

P-X

O-X

Aro

mat

ic

Nap

htha

38

0,00

0

Aro

mat

ic

Ligh

ts

60,0

00

Py-

Gas

34

0,00

0

Propylene

To the complex 14,000

VCM waste 5,400

VCM 152,000

Ethylene 164,000

Ethylene 198,000

12,000

Ethylene 100,000

Ethylene 57,000

PGP 148,000

CGP 100,000

47,000

69,000

3,000

To the complex 2,000

Masterbatch 7,000

Bag 1,000

MEG 89,000

DEG 8,000

C4 152,000 Aromatic Oil 95,000

Pygas 67,000 PP 144,000

Propylene 57,000

PTA 105,000

Paraxylene 71,000

PA 49,000

Cutter Stock 30,000 C5 Mix 80,000

Benzene 150,000

ACN 90,000

Tons/year

Chlorine Alkali (CA) ▪  Chlorine 100,000 ▪  Caustic (100%) 114,000

To the complex

Product

Semi - Product

20

Petkim plants start – up and major capacity expansion dates Startup date Expansion date

1985 1990 1995 2000 2005 2010 2015

90,000 tons/year

▪  PP

▪  Aromatics

144,000 tons/year

▪  EO/ EG

▪  HDPE

▪  ACN

▪  PVC 150,000 tons/year

588,000 tons/year

Capacity Plants

105,000 tons/year

▪  LDPE - T

10,000 tons/year

100,000 tons/year chlorine

▪ MBE

▪  PTA

▪  LDPE

96,000 tons/year

▪  BAG

89,000 tons/year MEG

190,000 tons/year

▪  CA

4,000 tons/year FFS roll film

▪  VCM

▪  PA

▪  NSC

49,000 tons/year

150,000 tons/year benzene

152,000 tons/year

160,000 tons/year

21 SOURCE:ICIS,McKinsey

1Top25countriesintermsofPetchemconsumpbonexcludingTurkey

160

140

130

180

170

120

18 191513 17161412 201090

11

110

100

150

TurkeyGDPvs.PetrochemicalsConsumpbonDevelopment100=Indexedtoitsyear2010value

GDP(real)

PetrochemicalsConsumpbon

1.4x1.4xTurkey,xGDP

1.2x1.4xGlobaltop25countries1,xGDP

Ø  Turkeyisasignificantpetrochemicalsmarket,withconPnuinghealthygrowthexpectaPonsintothefuture,exceedingthegrowthinGDP

TurkishPetrochemicalMarketisGrowing

22

Ø Halfofthemarketprovidedbynon-feedstockadvantagedcountries

1PP,HDPE,LDPE,PSSOURCE:UNcommiVee,IHS,McKinsey

SOURCE:IHS,Petkim,McKinsey

1AveragepricepertonofpetrochemicalsisassumedtobethesameasPetkimaveragepricepertonin2015

2Allpetrochemicalsmarket(excludingfibersandotherextensions)

TurkeyisOneoftheMarketswiththeHighestShareofImportsinPetrochemicals

23

PetkimveStarRafineriSinerjisi

39

16

15

125

55

Aromabcs-PTAchain Otherflows,infrastructureandservices

AromaPcsfeedstocksupply

2

Sharedinfrastructure,servicesanduPliPes4

TotalpotenPalofshort-termsynergies

Feed-stockopPmi-zaPon

OtherflowintegraPon3

Lightnaphthasupply

1

▪  1.6MTAlightnaphthasupplyfromSTARtoPetkim’sethylenecracker▪  EliminaPonoflightnaphthatransportaPoncost

▪  ReformatesupplyfromSTAR’sCCRintoPetkim’sexisPngaromaPcsplant(insteadofMixedXylenessupplycapturedinSTAR`sbasecasecurrently)

▪  ImprovedsalesvalueandreducedoperaPngcostsforSTAR▪  Increasedandimprovedoutputproductmixduetohigherquality

feedstockforPetkim

▪  UsingrefinerySGPfuelgasstreamandUGPsweetoff-gasesascrackerfeedstock

▪  Costsynergiesfromsharedmaintenance&laboratorystaffing(annual)

▪  One-offpurchasecostreducbonduetocommonsharedmaintenanceparts,sharedEquipment(FireFighbng/MaintenanceEquipment/Cranes)

▪  Waterandsteamsupply,cogeneraPonandpowernotincludedyetinthepotenPalupside

AnnualEBITDAimpactBasedonaverage2012-2016marketfigures1,US$MnTypeofshort-termsynergy ExplanaPon

1Source:ICISpricesdatabase

PetkimveStarRafineriSinerjisiSynergiesfromPetkimandSTARİntegraPon

SOCAR Turkey Human Resources

25

SOCAR TURKEY HUMAN RESOURCES What we are doing? Main Responsibilities

Recruitment

The main responsibility of Human Resources policy is to pay attention to its employees’ recommendations and expectations and to provide them with a safe and healthy work place where ethical values exist.

Performance Management

Talent Management

Learning & Development

Our motto is right people in a right place

Performance evaluation process for fairness and equal opportunities

•  Gap analysis, PDP •  Competency based career movements •  Succession Planning for high potential employees and positions •  Talent management

Wide range of training programs where soft skills courses as well as technical trainings are taking important part of Learning and Development program

26

SOCAR TURKEY Internship Program

Internship Duration: 40 days Period: Mid June - September Send your updated CV to hr@socar.com.tr until 22.04.2017

General Ability Test, Personality Inventory and Englısh language test will be applied to all applicants. All candıdates have to go through assessment process ın order to get internship chance in SOCAR Turkey

25.04.2017 / Bakı Ali Neft Mektebi 26.04.2017 / Azerbaycan Devlet Neft Akademisi

Training Site Tours Projects & Tasks Evaluation Awards

Application Methodology

Assesment Dates

The Internship Program covers

This program is designed to equip interns by professional and personal development training programs. Within this program interns are actively involved in the projects and have chance to simulate the business life.

27

SOCAR TURKEY New Graduate Engineering Program We are lookıng for outstanding, energetic and driven group of high potential engineering graduates to join SOCAR Turkey New Graduate Engineering Program. The aim of our Graduate Program is not only to develop talent for now, but also to prepare talent for a productive career in SOCAR Turkey with strategic objectives for Azerbaıjan

Send your updated cv to hr@socar.com.tr until 22.04.2017 General Ability Test, Personality Inventory and English Language tests will be applied to all applicants. Applicants who get through the tests will attend to Case Study Assesments. Only successful candidates wıll be selected for SOCAR Turkey New Graduate Engineering Program 25.04.2017 / Bakı Ali Neft Mektebi 26.04.2017 / Azerbaycan Devlet Neft Akademisi

Unique opportunity for refinery experience Professional Development Capability Development Networking

Application Methodology

Assesment Dates

Advantages of Graduate Program

28

Assesment Details

General Aptitude Test This test measures an analytical and deductive skills. It will last 50 min.

This inventory measures your strengths and weaknesses in general. Personality test is expected to demonstrate reliability and validity, duration ıs 35-40 min.

English Language Test

This test is multiple choice test that measures your English level, duration is about 45 min.

This session will be only for graduated engineering candidates. Candidates who get through the tests will attend to Case Study Assessments. Further details will be shared with participants.

Internship Assessment includes

Engineering Assessment includes

General Aptitude test, Personal Inventory, Technical Test and English Language Test

General Aptitude test, Personal Inventory, Technical Test and English Language Test, Case Studies.

Personality Inventory

Case Study session

Technical Test This test measures your technical skills, duration is about 60 minutes