Oil And Gas Development In IranOpportunities For Cooperation

Rokneddin Javadi, CEOOil Industries’ Engineering and Construction (OIEC)

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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

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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

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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

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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)

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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)

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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.

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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

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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

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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

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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

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Opportunities for Russian Companies

• There are also other great opportunities:

– Transfer of technology and technical support and assistance

– Financing of Iranian projects

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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

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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 AttentionOil Industries’ Engineering and Construction (OIEC)