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Petrochemical Opportunities

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Presentation on theme: "Petrochemical Opportunities"— Presentation transcript:

1 Petrochemical Opportunities
Investment Environment of I.R. Iran and Petrochemical Opportunities Amir Hossein Zamaninia Deputy Petroleum Minister for International Affairs

2 Iran’s Strengths and Opportunities
Geopolitical Position Huge Potential Geo-economic Capabilities Huge Oil and Gas reservoirs Advanced infrastructural facilities such as roads, railways and ports

3 Petrochemical Sector; Post-Sanction
Ongoing serious negotiation with top international companies Negotiating more than $ 10,000,000,000 of contracts with different international companies Entering East and West European markets through exporting polymer products Acquisition of technical licenses from European companies for petrochemical downstream units

4 What Makes Iran Attractive for Foreign Investors?
Political & Legal Stability Hospitable foreign investment environment Protected by foreign investment promotion and protection Act of 1980 Advanced Infrastructure & Engineering Base Foreign policy of constructive engagement, moderation, recognition of legitimate interests in regional context Educated & Young Human resources “New York Convention” 1981 Convention on the recognition and enforcement of foreign arbitral awards 4

5 Importance of Petrochemical Sector
Petrochemical industry Complete value chain Decrease Sales of Raw Material Increase Export Revenues 7% share of hydrocarbon consumption 33% share of non-oil export

6 A Glance at Petrochemicals Production & Export Million ton

7 Petrochemical Production during 5th Development Plan and forecast for 6th Development Plan-million ton

8 Petrochemicals Export during 5th Development Plan and forecast for 6th Development Plan-million ton

9 Requirements for Realization of Sixth Development Plan Objectives in Petrochemical Sector
Sustainable supply of feed stock Competitive price formulae for different hydrocarbon feed stocks Infrastructure Finance Technology

10 Comparative Advantages of Iran’s Petrochemical Industry
Abundant Gas Feed stock Strategic Situation of Iran Huge Local Market for Petrochemical Products Growing International Market for Petrochemical Products

11 Strengths and Opportunities in Iran’s Petrochemical Sector
Abundance of Feedstock Advanced infrastructures and facilities in Petrochemical hubs Young and skilled human resources Growing demand for petrochemical products in the world (Average Annual Growth Rate during ; Ethylene 3.4 %, Methanol 3.2%, etc.) Access to growing local market Emerging markets in Asia

12 Sanction Snapbacks In the event of snapback, sanctions do not apply retroactively to business activity that takes place before snapback occurs. Provider of goods, services, loans and credit to Iran can receive repayment for those goods, services and loans according to the terms of the written contract.

13 Issues need to be addressed by International & Iranian Companies:
Facilitating the exchange of technology transfer for oil, gas & petrochemical projects Investment in oil, gas & petrochemical projects Creation of frame work for the exchange of know-How Market oriented pricing formula to safeguard the interests of both foreign investors and local companies

14 Thank You for Your Attention


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