Transcript Iran Investment in Hydrocarbon

Iran Investment in
Hydrocarbon
11th Session of Petro India
In collaboration with India Energy Forum
11 December 2012
New Delhi - India
Iran the Land of Peace and Development
in West Asia and Persian Gulf
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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
Iran Oil & Gas resources
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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.
Iran Oil & Gas Resources
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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.
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.
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Iran Gas Exports to other countries
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Countries like Turkey, Armenia and
Nakhchivan are currently the
customers of Iran’s 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.
Iran’s Plan for energy export
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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
Iran – Pakistan Gas Pipeline Project
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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.
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
Iran’s 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.
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Investment needed durin Iran 5th
Development Plan (2011-2015)
Figures in Billion Dollar
Total
2015
2014
2013
2012
2011
Company Name
145.9
3.13
19.8
33.6
42.54
36.7
NIOC
21.6
2.4
4.3
4.5
4.5
4.2
NIGC
16.7
6.2
3.1
3.3
3.6
4.1
NIPC
15.8
6.2
2.8
3.1
3.5
3.8
NIORDC
200
22.7
30
44.5
54.1
48.8
Total
Investment categories
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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.
Investment categories…
(Continued)
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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.
Iran’s Strategy for investment &
Financing its Oil and Gas Projects
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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.
Iran’s Strategy for investment &
Financing … (Continued)
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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 Iran’s 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.
Iran’s Strategy for investment &
Financing … (Continued)
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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 Iran’s 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
Iran’s Central Bank which have
been deposited with foreign
banks.
Use of crude oil as deposit with
other countries.
Iran’s Investment Incentives in Petroleum
Industry
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Possibility of assigning a
project to approved applicant
without participating in
project`s 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.
Iran’s 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.
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Iran & India
Friendship, Peace & long term relations
Thanks for your attention