Today, in Ankara, at the Botas Headquarters Gazprom export and Bosphorus Gas A.S. have entered into a Contract to supply Russian natural gas to Turkey.

Pursuant to the accord achieved Gazprom receives an opportunity to annually supply 750 mcm of Russian gas to Turkey until 2021.

The contract was signed due to the results of a tender for the partial transfer by Botas of the existing contract on purchasing Russian gas within the current gas market liberalization process in Turkey.

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Russian-Turkish cooperation in the gas industry began back in 1984, when the Governments of the Turkish Republic and USSR entered into an Agreement on natural gas supplies to Turkey. A total of some 138.7 bcm of natural gas was exported inclusively from Russia to Turkey until 2005.

Russian gas exports to Turkey have been on an annual rise. In 2005, 2006 gas deliveries were estimated at more than 18 bcm, 20 bcm, respectively.

On December 6, 2004, Gazprom and BOTAS inked a Memorandum of cooperation deepening in the gas sector. The Memorandum stipulates the possibility of direct or through subsidiaries deliveries of Gazprom’s gas to Turkish end-use consumers as well as potential joint involvement in gas supply & distribution and underground gas storage & gas-driven power plant development projects in Turkey.

In the frames of the current gas market liberalization process in Turkey, on November 30, 2005, Botas announced a tender to partially transfer the existing gas supply contract between Botas and Gazprom export (as of February 18, 1998) to other companies. The tender resulted in transferring of said contract to Bosphorus Gas Corporation A.S.

In accordance with the document signed and the accord achieved between Gazprom and Botas, Bosphorus Gas Corporation A.S. undertakes the rights and obligations of Botas.

Bosphorus Gas Corporation A.S. was established in Istanbul in 2003. The company provides gas marketing in Turkey.