Investment and Finance Opportunities in Iran Issa Mashayekhi Managing Director and Board’s Member NPC International Ltd
Investment in Iran: Practical Challenges Considering prevailing circumstances (Embargoes and Sanctions), why investment in Iran? Key points: Global financial crisis and credit crunch Regional powerful rivals (old and newcomers)
Investment in Iran: Basis of Growth Abundant Natural Resources Considerable petroleum reserves Competitive prices Developed Infrastructure Communication & Transportation Networks Availability of required Utilities Experienced workforce Reasonable IRR Unique Geographical location Foreign Investment Promotion & Protection Act Intensive development plans Free Economic Zones Export Guarantee Iran’s Petrochemical Investment Incentives
Iran’s Petrochemical industry Persian Gulf Petrochemical Industries Co (PGPIC) Ministry Of Petroleum NIOC NPC NIRODC NIGC Private Companies 17% Wholly owned subsidiaries
Petrochemical Industry Development: past and future PERSIAN GULF KHAZAR Bandar Imam Assaluyeh SAUDI ARABIA KUWAIT IRAQ Hamedan Mahabad Miyandoab Dehdasht Chahar Mahal & Bakhtiari Lorestan Andimeshk Kermanshah Gachsaran Mamasani Kordestan NPC 43 Complexes (Privatized) About 96 Development Projects Over $70 billion Investment Plan Khorasan New Hub of Petrochemical Industry Chabahar
Persian Gulf Petrochemical Industries Co. Utilities Providers Mobin Fajr Staff Companies Rahavaran Fonoon PIDMCO Production Companies Arvand Khuzestan Nouri BIPC Boualisina Pars Tondgouyan Investment and Finance provider Companies NPCI PCC Service Companies Non Industrial Operation Pasargad BIPC Mahshahr Assalouyeh Tehran
Persian Gulf Petrochemical Industries Co. (Cont.) 50% shares of Iran’s total petrochemical export 10% Shares of country’s stock market Mission: Expand investment in Joint collaboration with foreign and local partners
NPC International Ltd. (“NPCI”) Established in 1992 as private limited Company Registered under the Law of United Kingdom with its main office in London 100% of Shares belongs to PGPIC Main Area of activities: Financing of Petrochemical projects Joint venture development Acquiring foreign Investment in Iran Investment in Foreign countries
NPCI Historical View Finance Dealing with Major International Creditors& ECAs Providing about €12 billion financial facility to petrochemical Projects ECAs ECGD UK Hermes Germany COFACE France SACE Italy NEXI Japan KEXIM Korea CESCE Spain ONDD Belgium EKN Sweden
NPCI Historical View Joint Ventures Completed Under Development Company Foreign Investor Arya-SGS Switzerland Inspection Arya Sasol South Africa Olefin Laleh Netherland LDPE Hegmataneh Italy PVC Karun Germany/Sweeden Isocyanate Mehr Japan/Thailand HDPE Project Name Capital investment Ammonia-Urea Hormoz €526 million Hengam €474 million Methanol Veniran Apadana €500million
Concluding remarks Dealing with Financial restrictions Importance of political environment ECAs’ rating of countries Financial costs Credit ceiling withdrawal of Multi National Companies from Iran’s Market Cope with intensive competition in the region Empowering local sectors Development of local market Government policies to further integrate with the world economy Iran continues to leverage its advantages in domestic and international Joint Ventures
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