Parsian Energy-Intensive Industrial Special Economic Zone Vienna, Austria July 6-7, 2017 Parviz Akbaroff Int’l. Business Director Parsian Energy-intensive Industrial Special Economic Zone

Iran's Potential Features 5800 km maritime borders in north & south of the country Neighboring 13 countries (land & sea) The best access option for Central Asian landlocked countries Located in the world's largest energy region (2nd largest gas reserves & 4th largest crude oil producer) Proximity to consumer markets of Iraq, Pakistan, Afghanistan & CIS countries The most important multi-modal international transportation corridors Parsian Energy-intensive Industrial Special Economic Zone July 2017

Iran's Potential Features Centrally Located in the International North-South Transportation Corridor Parsian Energy-intensive Industrial Special Economic Zone July 2017

Iran's Potential Features Centrally Located in the International East-West Transportation Corridor Parsian Energy-intensive Industrial Special Economic Zone July 2017

Iran's Potential Features Proximity to the TRACECA International Transportation Corridor Parsian Energy-intensive Industrial Special Economic Zone July 2017

Iran's Potential Features Optimum Position in the International Transportation Corridor of South Asia Parsian Energy-intensive Industrial Special Economic Zone July 2017

Potential Features of Oil, Gas & Mineral Resources Oil: 160 billion barrels (%11.3 of total global oil reserves) Gas : 33.6 thousand billion m3 Equivalent of 214,000 Billion Barrel of Oil Equivalent (BBOE) (%17.93 of total global gas reserves) Huge Minerals Reserves (41 billion tons of proven reserves & 57 billion tons of probable reserves) Parsian Energy-intensive Industrial Special Economic Zone July 2017

Pars Special Economic Energy Zone (PSEEZ) Established in ‎‏1998‏‎ for utilization of South ‎Pars oil & gas resources and to promote activities in the oil, gas & ‎petrochemical sectors Phases planned for gas, petrochemical & downstream industries: 24 Total area allocated for project: ‎‏26,000‏‎ hectares Petrochemical projects include: - 9th , 10th , 11th & 12th Olefins - 4th Methanol - 4th , 6th & 8th Urea & Ammonia - 6th Methanol & DME - Ethane recovery - Styrene Monomer & polystyrene - Port & central utilities Persian Gulf Parsian Energy-intensive Industrial Special Economic Zone July 2017

Indices for Site Selection of Energy Intensive Industries Priorities Proximity to Gas Resources Access to Water Resources Access to Marine Transportation Routes 4 coastal provinces (Sistan & Baluchestan, Hormozgan, Bushehr, Khuzestan) 2 hinterland provinces (Kerman & Fars) Total of 72 sites Parsian Energy-intensive Industrial Special Economic Zone July 2017

Viable Options in Site Selection of Energy-Intensive Industries (Proximity to PSEEZ) Among the 9 options, only 3 areas are within 150 km of the South Pars reservoir Parsian, Lamerd & Dayyer Parsian Energy-intensive Industrial Special Economic Zone July 2017

Final Result Parsian Zone was selected as the top choice among the 3 zones (Parsian, Lamerd & Dayyer) based on: Location in the Persian Gulf (water & port) Closest distance to the existing PSEEZ feedstock (most economical & shorter transport distance) benefitting from the existing PSEEZ infrastructures more suitable environmental conditions Expanded area 30 km distance from PG Int’l. Airport Parsian Energy-intensive Industrial Special Economic Zone July 2017

General Information Parsian Site: Two Zones: Area: 10,000 ha * Location: 15 km west of Parsian City (Hormozgan Province) Two Zones: North Zone (4,000 ha) South Zone (5,000 ha) (connected by two corridors) * Zones + corridors Persian Gulf Parsian Energy-intensive Industrial Special Economic Zone July 2017

Advantages Proximity to South Pars Gas Field & PSEEZ for the required infrastructure & feedstock Availability of resources & capacities in Hormozgan, Fars, & Bushehr Provinces (manpower, infrastructure, ICT, etc.) Having all the necessary permits from EPA, PMO, etc. Benefiting from “Special Economic Zone” status Bilateral Investment Treaties (BIT) with 68 Countries Tax holidays Double Taxation Treaty (DTT) - Avoidance of Double Taxation Customs exemptions for raw materials & industrial equipment Possibility of exporting products to the mainland Easy circumstances for re-export & transit of commodities Parsian Energy-intensive Industrial Special Economic Zone July 2017

Lease to Buy Process Approval of project by Ministry of Oil Preliminary land allocation Conditional land transfer (lease) (completion of production chain, acquiring technical know) Conclusive land transfer (buy) (based on project progress) design, technical knowledge & construction management & operation financial commitments Parsian Energy-intensive Industrial Special Economic Zone July 2017

Geographical Location of Parsian Zone فاصله تا فرودگاه خلیج فارس 30 كيلومتر Pars Special Economic Energy Zone Parsian-Lamerd Energy-Intensive Industrial Special Economic Zones Parsian Energy-intensive Industrial Special Economic Zone July 2017

Location Distance to Port of Pars: 40 Km PSEEZ Site 2 Pars Special Economic Energy Zone Site 1&2 Parsian Energy-intensive Industries Special Economic Zones PSEEZ Site 1 Parsian Site Distance to Port of Pars: 40 Km Distance to Persian Gulf Intl. Airport: 30 Km Lavan Island Parsian Energy-intensive Industrial Special Economic Zone July 2017

Parsian Port Specifications Construction & development: 3 Phases Final Total Capacity: 40 million tons/year 19 berths: 11 general cargo 1 container 1 liquid bulk cargo 1 general cargo/container 5 dry bulk Parsian Energy-intensive Industrial Special Economic Zone July 2017

Phase I Port Project Port Development Project: Breakwater & dikes Dredging Reclamation & ground improvement Quay walls (for general cargo berths, Berths No. 7 & 8) Island Berth (for liquid bulk berth, Berth No. 5) Continuous suspended deck berth (for dry bulk berth, Berth No .3) Suspended deck access bridge (for vehicles, pipelines & conveyer access to liquid & dry bulk berths) Roads, pavements & drainage On-shore works including container yard, open storage areas, buildings, etc. Utilities including electricity supply, potable water supply, fire fighting, etc. Vessel traffic control & navigation facilities Parsian Energy-intensive Industrial Special Economic Zone July 2017

Phase I Port Project Cost of execution of Phase I: EPCF: Є 170 million Port Capacity: 8 MT Western Breakwater: 1,500 m No. Berths: 4 1 Dry Bulk Berth 2 General Merchandise Berths 1 General/Container Merchandise Dredging Depth: 14.5 m in (with (respect to CD) Parsian Energy-intensive Industrial Special Economic Zone July 2017

Phase II Port Project Port Capacity:13 MT Western Break Water: 1,500 m No. of Berths: 6 2 Dry Bulk Berth 3 Public Goods Berths 1 Public/Container Goods Berth Dredging Depth: 15.4 m (with respect to CD) Parsian Energy-intensive Industrial Special Economic Zone July 2017

Phase III Port Project Port Capacity: 28 MT Western Breakwater : 2,400m Eastern Breakwater:1,700 m No. of Berths: 15 4 Dry Bulk Berth 9 Public Goods Berths 1 Liquid Berth 1 Public /Container Goods Berth Dredging Depth: 17.1 m (with respect to CD) Parsian Energy-intensive Industrial Special Economic Zone July 2017

Utility Supplies, Transfer & Distribution Process Concept Parsian Energy-intensive Industrial Special Economic Zone July 2017

Utilities SPV + => Specialized Utility Company Water Supplier Power Supplier Water Supplier Sewage Treatment Co. Power Distributors Power Transmission Company Providers of Other Types of Services Water Distributors Stakeholders 80% Energy-intensive Industrial Units Other Units Located in the Zone IMIDRO * 20% + => * Iranian Mines & Mining Industries Development & Renovation Organization Parsian Energy-intensive Industrial Special Economic Zone July 2017

Master Plan Alumina : 40 ha 3 MT/Y Petrochemical : 2112 ha 18 MT/Y Power : 189 ha 4,300 MW Non-Industrial: 304 ha Steel : 414 ha 4 MT/Y Aluminum : 221 ha 0.6 MT/Y Alumina : 40 ha 3 MT/Y Parsian Energy-intensive Industrial Special Economic Zone July 2017

Proposed Zoning in Petrochemical Sites Petrochemical : 507 ha Downstream: 36 ha Site 1: Petrochemical : 377 ha Downstream: 49 ha Site 1: Petrochemical : 435 ha Downstream: 80 ha Parsian Energy-intensive Industrial Special Economic Zone July 2017

Measures Undertaken at Parsian Zone Executive Operations : Implementation of more than 40 km fence of the Parsian Customs Implementation of more than 60 kilometers of service roads Construction of about 18 km power distribution network during construction period Construction of about 20 km of water transmission network during construction period Construction of two water storage tanks 2,000 m3 & 500 m3 on the northern & southern sites Supply of 50,000 m3/day water during construction period Supply of 500 MW/day power Allocation of 20 million m3/day of feedstock Parsian Energy-intensive Industrial Special Economic Zone July 2017

Main Highway & Roads PERSIAN GULF Peripheral Road & Fencing : Construction of 40 km peripheral access road & implementation of Customs fence PERSIAN GULF Main Highway: Construction of more than 18 km of arterial roads on Northern Site & 10 km arterial road on Southern Site Parsian Energy-intensive Industrial Special Economic Zone July 2017

Power Grid & Water supply Network PERSIAN GULF Power Grid: Construction of power grid (19 km) Water Supply Network: Construction of 20 km of water supply network Parsian Energy-intensive Industrial Special Economic Zone July 2017

Thank You www.rahshahr.com akbaroff@rahshahr.com Parsian Energy-intensive Industrial Special Economic Zone July 2017