MIDDLE EAST PETROLEUM FZE PETROLEUM LOGISTICS SERVICES

MEP’s Trans-shipment Operations

The history of Middle East Petroleum FZE (MEP) began as recently as 2002, by investments in Dubendi Oil Terminal (DOT) and establishing Middle East Petroleum as trans-shipment company in the Caspian region.

Today Middle East Petroleum is a leading trans-shipment company in the CIS region. MEP’s trans-shipment business deals with the transit transportation of crude oil and oil products from Caspian Sea Ports to Georgian Ports on the Black Sea through  the Dubendi Oil Terminal in Azerbaijan. Middle East Petroleum FZE provides smooth and integrated shipping, storage and railway transportation services to its clients by close cooperation with Caspian Shipping Company (CSC), Azerbaijan and Georgian State Railways Companies and storage facility owners in the Georgian Ports of the Black Sea. In addition MEP provides freight-forwarding services for oil products of Azeri origin from Baku Oil Refineries to the Black Sea.

The transportation activities of MEP create significant benefits for the countries of the region in terms of crude oil and oil products exports, transportation revenues, and employment. In addition to economic benefits the transportation industry is strategically important for Azerbaijan and Georgia who are supported in the developments of transportation by the European Union under the TACIS / TRACECA programs. MEP’s vision is to be a strong local partner that provides focused, but specialized expertise, and knows the geo-political and social structures of the region.

Middle East Petroleum conducts business with the highest regard for the health and safety of its employees, contractors and neighboring communities. All personnel are extensively trained in the safe handling of crude oil and petroleum products, quantity and quality monitoring, emergency response, spill response, vessel operations, fire fighting, inspection and maintenance procedures for high risk equipment and zones.

In addition to the Head Office in Dubai (UAE) and the Operations Centre in Baku, MEP has operational offices in Ashgabad (Turkmenistan), Tbilisi and Batumi (Georgia).

MEP’s Dubendi Oil Terminal

Dubendi Oil Terminal is located on the Caspian Sea approximately 50 kilometers northeast from Baku, Azerbaijan. The terminal presently has a trans-shipment capacity of 10 million tons per annum and is a major hub for the transit transportation of crude oil and oil products from the Caspian Region to world markets. However, after the completion of planned further investments, the capacity will allow trans-shipment of 20 million tones per annum. The distance of Dubendi Terminal from the city center and populated areas brings advantages in terms of management, the ability to protect the environment and operational safety.

Middle East Petroleum has been operating the Dubendi terminal since April 2002. Last year trans-shipment of the crude oil and oil products through the terminal increased by 3%: from 2.815 million tons in 2004 year to 2.898 million tons in 2005 year; approximately 2.565 million tons have been transshipped via the terminal in 2003. This year it is planned to increase trans-shipments up to 3.0-3.5 million tons crude oil and oil products. The terminal, mainly handles Kazakh kumkol crude oil, okarem and cheleken crude from Turkmenistan, as well as petroleum products of different grades and origin.

Dubendi (Apsheron) Port

Transit crude oil and oil products are transported by oil tankers from Caspian Sea Ports via Dubendi (Apsheron) Port. The Dubendi (Apsheron) Port is situated across Pirallahi Island naturally protecting the port from the frequent strong winds and high waves of the Caspian Sea. This makes Dubendi Port and Terminal uniquely well located as the receiving point for transit crude oil and oil products, with a capability to receive and offload vessels in poor weather conditions while other ports may have to be temporarily inoperative.

Middle East Petroleum has exclusive use of two jetties at Dubendi Port, which provide four safe berths where four vessels can be discharged simultaneously. Current terminal’s receiving capability is approximately 20-25 thousand tons/per day of crude oil and oil products. In the near future, two others standing jetties are planning to be repaired and modernized and this will allow increasing terminal receiving capability up to 40-50 thousand tons/per day. Dubendi Port can receive Caspian Shipping Company’s (Caspar’s) vessels up to 13,000 DWT - currently the largest tankers operating in the Caspian Sea. The sea bottom in Dubendi Port and channel is sandy and easily dredged when necessary. Present channel safe draft is 8.7 meters.

Shore Tank Storage Facility

Storage capacity at Dubendi Terminal is 195,000 m3 for light oil products (gasoline, gasoil, kerosene, naphtha, jet fuel, etc), made up of 39 shore tanks of 5,000 m3 each divided into five separate tank farms. In addition, there is a storage capacity of 146,000 m3  for crude oil and fuel oil consists of four floating roof tanks by 20,000 m3  capacity each, two fixed roof tanks by 23,000 m3  capacity each, and four small fixed roof tanks by 5,000 m3 . The combined total storage capacity of the Dubendi Oil Terminal is 341,000 m3 . Light Oil Products Tank Farm was totally refurbished and put into operation by MEP in August 2002.

Shore Pipelines

A total of eight pipelines connect the Dubendi Port (Storage Facility) to the rail loading installation. Three of these pipelines are used for crude oil and fuel oil, and the remaining five separate pipelines constructed by Middle East Petroleum are used for each grade of light products. Such organization of storage tanks and connection pipelines enables Middle East Petroleum to handle and transport different grades of oil products at the same time, preserving the quality specifications of each grade, due to full segregation. Shore tanks and pipelines for crude oil and fuel oil are equipped with heating facility to allow the handling of high pour point cargoes in the winter period.

Railway Loading Installation

Concurrent with the investments at the Port and tank farm storage facilities, MEP doubled the capacity of the Dubendi Rail Loading Facility, which is located on average five km away from the tank farms, by building a light product loading rack as an extension to the black oil product rack. The combined loading installation can simultaneously load 76 rail tank cars of 60 m3 capacity (55Mt.) in a two hour period. The Rail loading facility is connected to the storage tanks by dedicated pipelines. Current terminal’s possibility of dispatching is approximately 20-25 thousand tons/per day of crude oil and oil products. There are 12 access tracks at Dubendi railway station which can hold approximately 350 Rail Tank Cars (RTCs) at time.

The third universal railway installation for loading and unloading of dark and light products is planning to be put into operation up to the end of April this year and will allow increasing terminal dispatch capability up to 35-45 thousand tons/per day.

Middle East Petroleum also planning to expand its own RTCs fleet from 315 to 1000 Rail Tank cars in order to optimize crude oil and oil products delivery. More 1000 Rail Tank cars are leased from Azerbaijan State Rail Way Department.

Operational Procedures

Since taking over management and operation of the Dubendi Oil Terminal MEP has gained ISO 9001 "Quality Management System", ISO 14001 "Environmental Management System" and ISO 18001 "Occupational Health and Safety Management System" certificates for its trans-shipment operations. Moreover, according to the results of audit carried out by BP’s specialists, the terminal satisfies BP’s internal standards for oil terminals. Quality and Quantity control of crude oil and oil products shipped via Dubendi terminal is performed by international independent inspection companies.

The Dubendi Oil Terminal is regularly audited by the Turkish Standard Institute and International Major Oil Companies to ensure environmental integrity as compliance with international and state regulations, standards, policies and procedures.

The results of audits are then used to indicate areas of non-compliance and highlight corrective measures which can be implemented.

The terminal has extensive firewater protection of all shore tanks, pier and other high risk areas of the facility. All jetties are equipped with high pressure firewater pumps and foam fire extinguishing equipment. The specific high-pressure water pump system is capable of fully isolating the entire jetty from the other structures of the port. Additionally, escort tugs with foam capability and firewater pump are always available at very close proximity to the terminal for emergency responses.

All storage tanks are equipped with foam fire extinguishing equipment, and a comprehensive fire-fighting station located next to the terminal is capable of reaching the majority of terminal facilities within two minutes. Dubendi terminal has had a full Oil Spill Response Operations Program since 2002.

This program encompasses monitoring and reporting activities related to the operational readiness of personnel, equipment, and organization of the Dubendi Terminal to respond to any oil spillage. The program monitors oil spill incidents within the port and onshore facilities of the terminal and evaluates response readiness.

It is president Mr. Abdolbari Goozal’s intention for MEP to continue to upgrade and improve its investments in the oil transportation industry to remain as a key player and to be the trans-shipment operator of choice in the Caspian oil industry. The achievements of MEP are a direct result of the drive, vision, and leadership of Mr. Goozal who states that "the provision of a first class quality service which guarantees full customer satisfaction whilst ensuring operational safety, protection of the environment and the health of its workers are the priorities of Middle East Petroleum FZE".