SCPC Commercial Operation

Starting from 1st of May 2015 SOCAR Midstream Operations Ltd. fulfils the role with respective obligations and activities as Commercial Operator of SCPC. The Commercial Operatorship was transitioned from STATOIL who was holding this role since 2007. Following are key activities performed by SCPC Commercial Operator for SCPC, HoldCo and OptionCo in accordance with the Operator Services Agreement.

• Budgeting, Accounting, Taxation, Reporting and Administrative Activities;
• Statistics activities related to gas transportation by means of IT-systems;
• Gas allocation and Gas sales and tariff invoicing;
• Operation of OptionCo gas sales;
• Governance of SCPC, SCP HoldCo and SCP OptionCo by means of regular meetings with Partners, the Boards and Shareholders;
• Representative Activities;
• Commercial and Legal function via of interpretation of contracts and development/execution of additional contractual arrangements;
• Communication with various state authorities;
• Business Development for future gas transportation arrangements and the expansion of the SCP.

Commercial Operations of SCPC includes various interface activities with different stakeholders. On a regular basis there is a communication line established with:

1. Azerbaijan Gas Sales Company (AGSC) for the coordination of the gas volumes transported via SCPC system to Georgia and Turkey with subsequent invoicing;
2. BP (SCPC Technical Operator) for alignment of technical and commercial aspects and system integrity to secure non-stop operation of the asset for the gas transportation and delivery;
3. Georgian Oil and Gas Company (GOGC) for the alignment of delivered gas volumes to Georgia;
4. BOTAS for the alignment of delivered gas volumes to Turkey.