PUTTING POTI IN THE WORLD OIL MAP

Channel Energy (Poti) Ltd - Georgia

Poti Sea Port Oil Terminal Project is jointly undertaken by Channel Energy Ltd. - an international company with extensive experience in the storage and handling of oil products for over 20 years and by Poti Sea Port - a state enterprise that has significant experience on the management of port operations in Georgia and the Region. The project is financed partly by equity and partly jointly by European Bank of Reconstruction and Development (EBRD) and Black Sea Trade and Development Bank, both of which play an active role in the development of the Region. Caspian Energy interviewed Mr. Mehmet Habbab, the Chairman of Channel Energy Ltd.

CE: Can you please give some history of your Company at the Port of Poti:

MH: The Company already has been operating in the region since 2000 with its floating storage capability, the M/T Potistar and has been dealing with the well known oil majors and multinational trading companies - the largest ones in the region. The 1st Phase was completed and became operational in September 2002 and the second phase will be completed by early second half of 2003.

CE: What are exactly the phases of the project and the corresponding capacities?

MH: The Poti Sea Port Oil Terminal Project consists of three phases, namely the:

* Floating Storage - 30,000 tons of white products

* 1st Phase - 40,000 tons of white products

* 2nd Phase - 80,000 tons of black products

CE: What are the expected throughput volumes for your Terminal?

ME: The region exploration and production growth adds to the development of the oil industry in the Caspian and the companies involved in the region. Channel Energy estimates to handle over 2 million tons of product in 2003 and double this throughput in year 2004 with the launch of the second phase of the project.

CE: And what are your future plans for the Region?

ME: As the port has the capability to offer further expansion opportunities, Channel Energy is actively looking to increase its investment prospects in the area to participate in these aforementioned growth prospects and strengthen its presence in the Caspian Region.