Iran Investment in Hydrocarbon

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Iran Investment in Hydrocarbon

• 11th Session of Petro India
• In collaboration with India Energy Forum
• 11 December 2012
• New Delhi - India

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Iran the Land of Peace and Development in West
Asia and Persian Gulf

• Population 75 Millions
• Friendly people and rich culture
• Rich infrastructure world class ports, airports
  and highways.
• Access to huge easily expolitable oil and gas
  reserves in Persian Gulf and Caspian Sea.
• Strategic location strategic transit route.
• Close to energy thirsty countries in Asia. 4-5
  days shipping to Mumbai in India East Coats
• Decades of credibility and sustainability in oil
  supply to the global markets

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Iran Oil Gas resources

• Iran ranks among the world's top four holders of
  both proven oil and natural gas reserves.
• Oil
• 12 percent (154.8 billion barrels) of global oil
  in the country,
• The third biggest oil reserves in the world after
  Saudi Arabia and Iraq.
• Production capacity around 4.2 million bpd.
• Planning to raise its daily output to 5.1 million
  bpd by 2015.
• Able to meet up to 70 of its technological
  needs domestically.

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Iran Oil Gas Resources

• Gas
• With the existence of 17 percent of global gas
  reserves in the country, Iran is considered as
  the second biggest gas reserves holder in the
  world (after Russian Federation).
• As of January 2011, Iran's estimated proven
  natural gas reserves stood at 1,046 trillion
  cubic feet (Tcf).
• The country's average daily gas production at
  this stage amounts to 650mln c/m per day.
• In the next three years, gas production capacity
  is going to rise to 1.4 billion cubic meters per
  day.
• At this stage only South Pars Gas Field which is
  shared with Qatar is the main source of gas
  production and Iran has not tapped its other gas
  field, yet.

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Iran Gas consumption

• At present, 929 cities of the Islamic Republic of
  Iran are enjoying gas services which make up 97
  percent of all cities population.
• Gas is used for cooking and heating, feeding
  Petrochemical units and power plants and as CNG
  fuel in cars.
• Part of Iran gas production is also used for
  re-injection in the oil wells to increase the
  output.

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Iran Gas Exports to other countries

• Countries like Turkey, Armenia and Nakhchivan are
  currently the customers of Irans natural gas.
• Iran is considering an Iraqi request to import
  Iranian natural gas and a general agreement has
  been reached on that.
• Having in mind its vast efforts to explore and
  extract those reserves, Iran has the capacity to
  export natural gas to other neighboring countries
  and regions in particular Pakistan, India and
  China through various pipelines.
• Only in the first 10 months of the current
  Iranian year (started on March 21), Iran has
  exported 7.6 bln c/m of natural gas to iys
  neighbors.

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Irans Plan for energy export

• Pipeline Iran - Pakistan (IP) SAGE deep sea
  pipeline.
• LNG, The Iran LNG project includes two
  liquefaction trains with an expected capacity of
  10.8 million tons of LNG. So far, Iran LNG 70
  Progress.
• GTL (Gas to Liquid), 2 small unit has been
  successfully set up in the country.
• GTW (Gas to Wire). Iran is the main exporter of
  electricity to the region and plans to increase
  export of power supplies to the neighboring and
  regional states.
• Last year, Iran exported a total of 7.8 billion
  gigawatts per hour and this year it is expected
  to exceed 10 billion GW/h.
• Iran has also power swap deals with Armenia,
  Pakistan, Turkmenistan, Turkey, Azerbaijan, Iraq,
  Afghanistan and the autonomous region of
  Nakhchivan

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Iran Pakistan Gas Pipeline Project

• Tehran is determined to complete Iran-Pakistan
  gas pipeline project and It has made progress
  with Islamabad in implementation of this 1,100 km
  project.
• Iran and Pakistan are to accomplish this project
  by 2014.
• The gas will be supplied from the South Pars
  field.
• The initial capacity of the pipeline will be 22
  billion cubic meters of natural gas per annum,
  which is expected to be later raised to 55
  billion cubic meters.
• So far, Iran has completed 900 km out of 1100 km
  of its part in the country.

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Gas Pipeline Projects (continued)

• For IP gas pipeline, iran has offered a USD 500
  Million loan to Pakistan recently and the
  relevant finance agreement is to be singed soon.
• On SAGE project and bringing Irans natural gas
  to India through a 1400 km deep sea pipeline, the
  new innovations and cost effective technology
  could make this project a reality and bring Iran
  gas to India without any security concern and
  with a less cost and technical complexities than
  LNG.
• The Feasibility study of this project has been
  done and Iran welcomes the negotiations with
  SAGE, Indian gas buyers and the government of
  India, in case if there is a strong political
  will in this respect.

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Investment needed durin Iran 5th Development Plan
(2011-2015)Figures in Billion Dollar
Company Name 2011 2012 2013 2014 2015 Total
NIOC 36.7 42.54 33.6 19.8 3.13 145.9
NIGC 4.2 4.5 4.5 4.3 2.4 21.6
NIPC 4.1 3.6 3.3 3.1 6.2 16.7
NIORDC 3.8 3.5 3.1 2.8 6.2 15.8
Total 48.8 54.1 44.5 30 22.7 200
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Investment categories

• Development of shared (with neighboring
  countries) oil and gas fields.
• Development of small size reservoirs and fields.
• Investment in early production from mid size
  reservoirs and fields.
• Exploration blocks.
• Gathering, pressure maintenance and gas injection
  stations.
• AMAK projects.
• Construction of new and renovating of existing
  dehydration units.
• Building gas production and refineries.

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Investment categories (Continued)

• Optimization of oil fields surface facilities.
• Seismic acquisition projects.
• Optimization of gas unit performance.
• Renovation of fields production facilities.
• Crude oil export pipelines and pumps.
• Building crude oil storage tanks.
• LNG and gas sweetening projects.
• Renovation of North storage terminal facilities.

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Irans Strategy for investment Financing its
Oil and Gas Projects

• Creating a competitive atmosphere for domestic
  and foreign investors and partnership.
• Fund management.
• Encouraging domestic private banks for playing an
  active role in investments and mobilizing the
  necessary finances through collaboration with
  foreign banks across the world.
• Attracting foreign financial resources through
  more flexibility in the national laws and
  regulations.
• Expediting the process of privatization in oil
  industry.
• Expanding bilateral cooperation with oil and gas
  companies at the regional and international
  levels.

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Irans Strategy for investment Financing
(Continued)

• Utilizing additional foreign revenues of the
  Government available in the national development
  Fund for financing such projects.
• Using the capacity of domestic financial
  institutions such as pension funds.
• Taking use of the guarantee letters of Irans
  Central Bank as well NIOC for better encouraging
  the investors.
• Establishing a specialized bank for financing oil
  industry.
• Selling government bonds for financing oil
  industry projects.

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Irans Strategy for investment Financing
(Continued)

• Pre-payment though advance selling of crude oil
  and oil products.
• Credit purchases using Screw Accounts.
• Making Tri-Party Agreements (TPA).
• Utilizing foreign currency deposits of Irans
  Central Bank with credible foreign banks which
  are ready to provide loans and other creditlines
  in return for the said deposits.
• Using the bonds obtained by Irans Central Bank
  which have been deposited with foreign banks.
• Use of crude oil as deposit with other countries.

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Irans Investment Incentives in Petroleum Industry

• Possibility of assigning a project to approved
  applicant without participating in projects
  tender
• Providing feedstock for refineries (inside
  country border) with price of 95 of Persian Gulf
  FOB
• Possibility of assigning the 100 of refineries
  share and ownership to private investors
• Assuring the purchase of refining products from
  investor by petroleum ministry on Persian Gulf
  FOB price
• Possibility of exporting refining products by
  investor.

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Irans efforts for investment Financing its Oil
and Gas Projects

• Establishment of a investment committee by
  Petroleum ministry since March 2010, as the
  exclusive reference for admission and approval of
  investment and finance proposals and assessment
  of their financial competency and potency.
• The Investment committee welcomes any kind of
  investment/finance including investing funds,
  financial tools, buying/selling bonds and .
• Different Kinds of Contracts are applicable in
  the projects such as Buy Back, Finance Agreement,
  EPCF, EPC, BOO, BOT, and PSA.

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Iran IndiaFriendship, Peace long term
relations
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• Thanks for your attention