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Iran Investment in Hydrocarbon

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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. – PowerPoint PPT presentation

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Title: Iran Investment in Hydrocarbon


1
Iran Investment in Hydrocarbon
  • 11th Session of Petro India
  • In collaboration with India Energy Forum
  • 11 December 2012
  • New Delhi - India

2
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

3
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.

4
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.

5
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.

6
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.

7
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

8
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.

9
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.

10
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
11
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.

12
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.

13
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.

14
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.

15
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.

16
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.

17
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.

18
Iran IndiaFriendship, Peace long term
relations
19
  • Thanks for your attention
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