Hyundai Engineering in Turkmenistan

Hyundai Engineering in Turkmenistan Turkmenistan Gas Congress 2014 Avaza, Turkmenistan May 2014 Mr. JUNGMO JANG Vice President / Head of Marketing Office Hyundai Engineering Co., Ltd.

CONTENTS Ⅰ Ⅱ Ⅲ Company Overview 1. Hyundai Motor Group 2. Company s History 3. Company Organization 4. Scope of Business 5. Global Network 6. Business Lines & Projects - Process Plants Hyundai Engineering in Turkmenistan 1. Projects in Turkmenistan 2. Ethane Cracker and PE/PP Plant Project - Ground Breaking Ceremony Video Partnership with Turkmenistan 1. Mutual Cooperation 2. Financing Plan 3. Development Structure

Ⅰ. Company Overview

Ⅱ. Hyundai Engineering in Turkmenistan

Projects in Turkmenistan Project Name Ethane Cracker and PE/PP Plant Project Location Turkmenbashi, Turkmenistan Project Name Gas Desulfurization Project Location South Yoloten, Turkmenistan Project Name Oil Refinery Expansion Project Location Turkmenbashi, Turkmenistan Project Name Gas Treatment Plant Onshore GasTerminal Expansion for Garagol Deniz West oil development Location Turkmenbashi, Turkmenistan

Ethane Cracker and PE/PP Plant Project Groundbreaking / Digging Ceremony (2014.04.22)

Ⅲ. Partnership with Turkmenistan

1. Mutual Cooperation Turkmenistan s Natural Resources & Government s Support HEC s Technology & Know-how Mutually Beneficial Cooperation and Partnership Employment of Local Manpower & the Use of Local Materials Sustainable Business Models Value Maximizing Technologies

2. Financing Plan With its expertise and close relationships with international financial institutions, HEC is keen to arrange debt financing to the satisfaction of the Project Owner and in a timely manner ECAs participation Combined-financing between Korea and other countries The extent of recourse to the Project Owner at a minimum level Project financing/structured financing scheme

3. Development Structure Hyundai Engineering s Challenging Strategy Turkmenistan Gov t G tee/ Assurances Equity (30% of TIC) Sponsor (TG) Securities* Consultants (Legal, etc) Professional Advices Feed Supplier EPC Contractor (HEC) O&M Contractor Project Company Product Product Offtaker Debt (70% of TIC) Debt Service < Lenders > K-Exim** Guarantee Cover Syndicate of Banks*** J-Bic Insurance Cover < ECA insurers > K-Sure NEXI * Securities to be determined ** K-Exim may guarantee Syndicate of Banks *** Syndicate of Banks may include such as Deutsche Bank, SMBC

Turkmenistan Gas Congress 2014_Script 1. Ladies and Gentleman, And our honorable President of Turkmenistan, MR. GURBANGULY BERDIMUHAMEDOV ( 구르반굴리베르디무하메도프 ) and Vice Minister of Oil&Gas Industry and Mineral Resources Mr. BAYMURAD HOJAMUHAMEDOV ( 베이무라드호자무하메도프 ). I am Jung-mo Jang, the Vice President and Head of Business & Marketing Division in Hyundai Engineering. I am deeply honored to stand here today and present you how my company Hyundai Engineering, is contributing to the growth of Turkmenistan s gas industry. 2. Today I will show you how Hyundai Engineering has accumulated the know-how and technologies to maximize Plant EPC value in Turkmenistan, and how our future business partnership strategy will ensure solid growth of the Turkmenistan economy. 3. First, let s begin with the Company Overview. 4. Hyundai Engineering is the major construction affiliate under the Global Hyundai Motor Group. The Group is involved in various fields of businesses such as automobile, steel, finance, logistics etc. This large conglomerate has total of 57 affiliates with more than 240 thousand global employees. Hyundai Motor Group supports us in many ways with powerful resources and networks to transcend our performance to become the global leading EPC contractor. As of 2014, the Group s total revenue was around 214 billion US dollars. 5. Hyundai Engineering was established in 1974. Throughout the decades, we laid a solid foundation in engineering services. Today we are renowned for our technical excellence by completing more than 4,000 projects around the world. In 2011, Hyundai Engineering joined Hyundai Motor Group. Even Before 2000, Hyundai Engineering was already an established world class general contractor. And as of this year April 1st, by merging with our sister company Hyundai AMCO, we made another big leap to become the world premier EPC contractor. 6. This is our company s organization. Under the CEO, we have 5 major business operating divisions. They are process plant division for oil and gas industry, power & energy plant division, infrastructure & environmental plant division, building works division, and housing works division, along with the supporting and general administrative offices to assist all projects. 7. Overall, these are the services that Hyundai Engineering Provides. From the very early beginning of feasibility study and all the way to Operation & Maintenance, we provide complete services of a project cycle.

8. This is our global network headquartered in Korea. We are actively spread out all over the continents through project offices and branches for regional business development. 9. I am especially proud to present you how our Process Plant division contributed to growth in many country s oil&gas industries. Our business line covers upstream to downstream of oil and gas. We carried out numerous projects such as Gas Chemical Complex in Uzbekistan, Oil Production Facilities in United Arab Emirates, and oil refineries in Venezuela and many other related projects across Saudi Arabia, Iran, Algeria, Thailand and Vietnam. All together we executed over 450 process plant projects. 10. Several of our outstanding portfolios are carried out in Turkmenistan. 11. One of our major iconic project for processing plant is the Ethane Cracker and PE/PP Plant Project. This was awarded last year. Next is the Gas Desulfurization Project awarded in 2009. It is our biggest project ever. Next is the Oil Refinery Expansion Project in Turkmenbashi. Our target completion date is July 2015. Finally the fourth is the Gas Treatment Plant Project in Turkmenbashi as well. Our overall progress is about 38%. 12. This is the recent picture of the Groundbreaking Ceremony for Ethane Cracker and PE/PP Plant Project. Now let us enjoy a brief groundbreaking ceremony video. Just sit back and relax. 동영상재생 I hope you enjoyed the video. Once again, it is a great privilege to be given the chance to construct all the projects with our cutting-edge technology and tailored engineering. 13. This is the Gas Desulfurization Project. We were awarded in 2009. This project was the biggest project since Turkmenistan s independence. Also, Hyundai Engineering s biggest project ever. Project Cost was almost 1,500 mil. USD. Our Client is Turkmengas and this project was carried out successfully. The project s scope of works consisted of Acid Gas Removal Unit, Dew Point Control Unit, Condensate Stabilization Unit, Sulfur Recovery Unit and other utility system. We are very proud of this project. I would like to express our appreciation again. 14. Next is the Oil Refinery Expansion Project. The Client is Turkmenbashi Complex Oil Refinery. The Project cost estimated about 460 mil. USD. At this moment, our engineering progress is more than 68%. The project s scope of works consists of Vacuum Distillation Unit 2mil TPA, Alkylation, Isomerization, and Gasoline Mixing and so on. Our target completion date is July 2015.

15. Finally, this is the Gas Treatment Plant Onshore Gas Terminal(GTPOGT) Expansion for Garagol Deniz West oil development. The Client is Petronas Carigali.The Project cost is estimated about 240 mil. USD. The project s capacity is to handle 10,000 bpd oil, 35 mmscfd(million standard cubic feet per day) gas, 1,000 bpd produced Water, 10,000 bpd, and MEG(mono ethylene glycol) Reclamation and Regeneration. Our overall progress is about 38%, and our target completion date is December 2015. 16. Now, based on previous explanation of the 4 plant projects, and 2 other construction projects being carried out, I will elaborate about our future partnership in Turkmenistan. 17. Without a doubt, Turkmenistan has abundant Oil & Gas. And the Government has strong intention to improve its economy through active Investment in Energy industry and Infrastructure. This is the critical factor for Hyundai Engineering because the government s support will be highly helpful to develop and execute the projects. We have accumulated knowhow and technologies that are well-suited to the Turkmenistan gas industry. We try to employ local manpower and local material as much as possible. Our ultimate goal is to provide profitable and sustainable growth for both Turkmenistan Government and Hyundai Engineering. 18. To turn this into a fast tracked reality, we brainstorm innovative yet stable business development structure that will include credible financial institutions in Korea and other countries. Hyundai Engineering will do its utmost to arrange debt financing and expedite ECA s financial participation. We will help arrange and seek diverse combined financing methods that will help minimize the Project Owner s financial burden throughout all phases of the project cycles. 19. Look closely at our business development strategy. Through this suggested business chain, combined with our technological know-how, we guarantee you a mutually beneficial cooperation that will lead to profound economic growth of Turkmenistan. 20.Thank you for your listening. Thank you again our honorable President of Turkmenistan, MR. GURBANGULY BERDIMUHAMEDOV ( 구르반굴리베르디무하메도프 ) and Vice Minister Mr. BAYMURAD HOJAMUHAMEDOV ( 베이무라드호자무하메도프 ). If you have any question for us, please contact us during the networking free time. All of you are always welcome.thank you very much.