Oil And Gas Development In Iran Opportunities For Cooperation Rokneddin Javadi, CEO Oil Industries’ Engineering and Construction (OIEC)

Iran Oil and Gas Industry Yesterday A history of more than a century in petroleum industry: Iranian oil industry began more than a hundred years ago, when oil was discovered in Masjed Soleiman for the first time, and it has survived and developed since then Today The world’s third-largest proven oil reserves The world’s second-largest natural gas reserves OPEC’s second-largest oil producer

Reserves and Production Overview Crude Oil The world’s third-largest proven oil reserves About 10% of the world's oil reserves OPEC’s second-largest oil producer Crude Oil (2010) – BP Statistical Review June 2011 137 billion barrels Proven Oil reserves 4245 Thousand barrels daily Oil production

Reserves and Production Overview Natural Gas The world’s second-largest natural gas reserves About 18% of the world's natural gas reserves Natural Gas (2010) – BP Statistical Review June 2011 29.6 trillion cubic meter Natural gas proved reserves 138.5 billion cubic meter Natural gas production

Reserves and Production Overview Key petroleum sector facilities South Pars Gas field (as an example) - One of the largest independent gas reservoirs in the world - Lying on the territorial border between Iran and the State of Qatar in the Persian Gulf - Covering an area of 9700 square kilometers, of which 3700 square kilometers belongs to Iran - The Iranian portion is estimated to contain some 14 TCM of gas reserves and some 18 bn bl of gas condensates (roughly 7.5 % of the world gas reserves)

Governmental Structure The ministry of Petroleum which is in charge of the oil and gas industry consists of four major state companies: Ministry of Petroleum National Iranian Oil Company (NIOC) National Iranian Gas Company (NIGC) National Petrochemical Company (NPC) National Iranian Oil Refining and Distribution Company (NIORDC)

The Developing Industry The oil and gas industry is of the most fast-growing sectors in Iran Legal requirements have been developed during the recent decade to support foreign investment and cooperation. Significant and well-organized infrastructure facilities as well as qualified human resources are of the most striking factors that make Iranian oil and gas industry more attractive. Iranian EPC companies, with the experience of developing national giant projects can be good partners to cooperate with.

Development Plan Targets Oil and Gas Sector in Iran’s approved five years development plan (2011-2015) Total oil industry required investment: US Dollars 250 Billion Number of projects with priority to be implemented: 360 Upstream required investment: US Dollars 150 billion (US Dollars 30 billion each year) Total investment carried out in 2011: US Dollars 22 billion Investment plan for the year 2012: US Dollars 30 billion Total increase in oil production capacity: 1 MM bbl/d Total increase in natural gas production capacity: 250 MM SCMD

Some of NIOC's Production Goals To increase the crude oil production capacity from some 4.4 million barrels per day in 2008 to 5.1 million barrels per day in 2014 To increase the natural gas production capacity from 552 million cubic meters per day in 2008 to 1,111 million cubic meters per day in 2014 To increase the condensate production capacity from some 283,000 barrels per day in 2008 to some 748,000 barrels per day in 2014 To increase the NGL production capacity and oil from some 160,000 barrels per day in 2008 to 337,000 barrels per day in 2014

Iran Oil and Gas Opportunities Having huge hydrocarbon reserves, there are significant opportunities in the sector: Oil and gas fields development projects (preference is given to shared fields) Gas fields development (preference is given to early-returns fields) Oil fields development (preference is given to early production) Oil and Gas Exploration blocks projects Construction of gas production facilities, new gas and NGL plants Crude oil export pipelines and pumping stations Gas liquefaction and sweetening projects Construction of crude oil storage tanks and required pipelines

Opportunities for Russian Companies Russian companies are of the best candidates to cooperate in Iran oil and gas industry due to strong economic relations between the two countries and previous experiences The areas of EPC development projects and also joint investments by Iranian and Russian companies consist of: exploration, development and production of oil and gas Construction of gas pipeline for Iranian export gas purposes Construction of oil refineries and petrochemical complexes for internal consumption and export purposes Underground natural gas storage

Opportunities for Russian Companies There are also other great opportunities: Transfer of technology and technical support and assistance Financing of Iranian projects

Oil Industries Engineering and Construction (OIEC) OIEC: The leading Iranian EPC contractor in oil, gas and petrochemical industry 25 years of professional and successful experience Capable of undertaking projects from conceptual design through engineering, procurement, construction, commissioning and operation Current projects load of over 10 Billion USD Executing more than 140 projects Close to 300 million man-hours of work so far Over 2500 staff Several subsidiaries, each a leading expert in their own field

Oil Industries Engineering and Construction (OIEC) Downstream Design and construction of Oil and gas refineries Various petrochemical complexes Gas gathering and NGL recovery plants Oil and gas plants revamping and refurbishing Upstream Development and Production of oil and gas fields Marketing and sale of crude oil

Thank You For Your Attention Oil Industries’ Engineering and Construction (OIEC)