Overview on the Siraf Refineries Complex

2017

Siraf Refineries Infrastructure Company (SRIC) November 2017

SRIC | No. 80, West Brazil St., South Shiraz St., Molla Sadra St., Tehran, Iran. Overview on the Siraf Refineries Complex – November 2017

Contents

1. Project Information ...... 2

1.1. Introduction to Siraf Refineries Complex ...... 2

1.2. Site location ...... 8

1.3. Project Implementation ...... 10

1.4. Project Financing ...... 10

2. Main Macro-level Goals for Development of the Siraf Refineries Complex ...... 13

2.1. Direct Goals ...... 13

2.1.1. Private Sector Development ...... 13

2.1.2. Public domain development ...... 13

2.1.3. Increasing the Iran Refining capacity ...... 13

2.1.4. Increasing the Feedstock Capacity of Iran’s Petrochemical Complex ...... 14

2.1.5. Impact of the Siraf Refineries Complex on GDP of the Country ...... 15

2.2. Indirect Goals ...... 16

3. Quantitative Goals for Development of the Siraf Refineries Complex ...... 18

3.1. Gross Income from Sales of the Siraf Refining Products ...... 18

3.2. The Economics of Siraf Refineries ...... 18

3.3. The Impact of Siraf Refineries Complex on the Economy of Country ...... 22

3.4. Estimated Workload of the Siraf Refineries Complex ...... 23

3.5. Direct and Indirect Job Opportunities ...... 25

Page 1 of 25 Overview on the Siraf Refineries Complex – November 2017

1. Project Information

1.1. Introduction to the Siraf Refineries Complex

Siraf refineries complex consists of eight independent gas condensate refineries with common facilities and infrastructure units with the total capacity of 480,000 BPSD. It is located at the Siraf region of Bushehr province, between 13th and 19th phases of the South Pars gas field over an area of approximately 300 hectares.

This location has suitable access to the Iranian Natural Gas Trunk-line (IGAT) and gas condensate as feed for the refineries. Moreover, the other available infrastructures such as jetty, sea water intake, power grid, etc. reduce the total investment cost of this complex by almost 1 billion US$.

The total capacity of 480,000 BPSD will produce annually of 0.5 million tons of LPG, 4.5 million tons of light naphtha, 7.0 million tons of heavy naphtha, 3.6 million tons of kerosene (jet A-1), and 4.0 million tons of gas oil with Euro-V specifications.

In comparison with similar refinery projects in the world, the Siraf refineries complex has notable advantages such as; five percent discount on gas condensate feed (FOB PG) price, ten years tax holiday, VAT free, proper access to power grid, natural gas pipeline as fuel, gas condensate as feed, exporting port and sea water. Due to these advantages, the rate of return on this project reaches 22% in worst-case scenario.

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SRIC is a developer company in charge of management and coordination among eight Siraf refineries and responsible for coordination, financing and execution management of the complex in development, construction and operation phases.

SRIC is responsible for:

 Developing the Siraf mega-project, undertaking activities such as securing licenses and permissions (feedstock, natural gas, construction, environmental and operational licenses), basic engineering design, technical licensors agreement and engineering services and negotiating with ECA financers, EPC contractors and off takers.  Management and coordination among contractors during execution phase and operation period.  Owner of common utility and infrastructure units including Amine treating unit, sour water stripping, sulfur recovery unit, waste water treatment, sea water intake, desalination unit, cooling water system, demineralized water system, potable water system, fuel gas system, caustic dissolving system, condensate feed storage tanks, jetty and flare system.

Million Tons / year

LPG Siraf Refineries 0.5

nt Light Naphtha me Ref#1 Ref#2 4.5 lop ve De ct oje Pr tures Heavy Naphtha astruc 7.0 on Infr Ref#3 Ref#4 Comm SRIC Finan M cing Kerosene 3.6 an ag em Ref#5 Ref#6 en t & Co Gas oil 4.0 or di na ti on Ref#7 Ref#8 Residue 0.1

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Impact of Siraf Refineries Complex on Global Gas Condensate and Naphtha Market:

After completion of the remaining phases of South Pars gas field, operating the Siraf gas condensate refineries and full operation of the Persian Gulf Star gas condensate refinery, Iran will have no gas condensate to export.

By operating the Siraf refineries, a yearly total of 0.5 million tons of LPG, 4.5 million tons of light naphtha, 7.0 million tons of heavy naphtha, 3.6 million tons of kerosene (jet A-1), and 4.0 million tons of gas oil with Euro-V specifications, will be produced and entered to the global market. According to the World Oil Outlook 2015, the ratio of Siraf refineries production to overall market size on 2020 is as the following table.

Siraf Production World demand Production / (mb/d) 2020 (mb/d) Demand LPG 0.015 11.1 0.14% Naphtha 0.289 6.6 4.38% Kerosene 0.082 7.3 1.12% Gas oil 0.087 30 0.29% Residue 0.002 7.1 0.02%

Due to the following reasons, it is expected that Siraf refineries products including LPG, naphtha, kerosene, and gas oil will be absorbed easily in the global market.

• High demand growth rate of major Siraf refineries products,

• Low market share of Siraf refineries products,

• Significant and reliable difference between Break-Even Point of the Siraf refineries (~60%) and the average overall utilization rate in the world (> 80%).

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The Role of Siraf Refineries Complex in the Economy of the Country:

Gross annual income from the sales of Siraf The Share of Siraf Refineries in refineries products is 13 billion US$, which is total refining capacity of country about 3% of Iran's GDP. Gross added value from sales of the Siraf refineries products is 1.2 billion Siraf US$ a year, which is 0.3% of Iran’s GDP in 2016. Refineries 22% The annual production capacity of eight Siraf refineries is 19.6 million tons. The total refining capacity of country is 2.16 million barrels per day Other Refineries (by considering full operation of the Persian Gulf 78% star gas condensate refinery) in 2017. Therefore, the Siraf gas condensate refineries will increase the Iran’s refining capacity by 22%.

According to Iran’s energy balance (2014), the total liquid feedstocks of Iran petrochemical complex is 65.9 million barrels of oil equivalents (MMBOE). The total LPG, Light naphtha and heavy naphtha production of the Siraf refineries, which can be used as liquid feedstocks of Iranian petrochemical complex is equal to 86.7 MMBOE. Therefore, by operation of the eight Siraf refineries, the capacity of liquid feedstocks which can be used in Iran’s petrochemical complex, will increase by 130%.

In addition, according to Iran’s energy balance (2014), the total gas and liquid feedstocks of Iran’s petrochemical complex is equal to 151.4 MMBOE. Therefore, eight Siraf refineries can increase the potential of total gas and liquid feedstocks of Iran’s petrochemical complex by 57%.

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The Impact of Siraf Refineries on Petrochemical Feedstocks of Country (Million barrels of oil equivalent)

86.70

86.70 151.40

65.90

Liquid Feedstocks Gas & liquid Feedstocks

Without Siraf Refineries in 2014 Siraf Refineries

Because of the above-mentioned reasons, Siraf Refineries complex is chosen as the first priority of the resistive economy projects in Iran.

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Siraf Refineries Complex in Proposed Plan of Minister of Petroleum to Iranian Parliament:

In the proposed plan of Excellency Mr. Zanganeh, Minister of Petroleum, to Iranian parliament on 8 August 2017, starting the Siraf refineries complex in 2015 is introduced as one of the achievements of the eleventh government (2013- 17).

Exploiting the 480,000 barrels project of Siraf refinery complex in order to increase the refining capacity of the country, prevent selling crude, produce high value products, and also to process all the gas condensate productions of the country, has been proposed as one of the strategic and operational programs of the Ministry of Petroleum in the 12th government.

Moreover, completion of the remaining phases of South Pars gas field (phases 13, 14, 22-24) and the completion of phase 11 have been mentioned in the plan of the Ministry of Petroleum, in which case, the gas condensates as a feed of Siraf refineries will be supplied through the gas refineries in PSEEZ- 2.

In addition, attracting foreign financial capital and resources is emphasized in the proposed plan of Minister of Petroleum.

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1.2. Site location

There is always a substantial principle in selecting the site for refineries. They are usually erected near the feed or place of products consumers. Since exporting markets is targeted for our business, it was decided that the Siraf refineries complex to be constructed in the vicinity of the southern parts of Iran, which could be deemed as a place for supplying gas condensate (feed) and exporting the refineries products.

Siraf refineries complex is located in Siraf region of Bushehr province, between 13th and 19th phases of the South Pars gas field in South Pars Economic Energy Zone 2.

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The benefits of Siraf refineries site location:

If the Siraf refineries was installed in another place that more far away for supplying gas condensate as feed, condensate had to be conveyed through the pipe line or by ship. So, feed storage would be increased from 2 days to at least 14 days. So, expenditures of feed storage would shoot from 10.5 MMUS$ to about 74 MMUS$. Moreover, the working capital cost would be increased from 10.5 $ to 74 MMUS$. (Based on the condensate price equal to 88 US$/bbl) The other savings have been made by selecting a proper place for Siraf refineries complex are as following:  Using the exist jetty and exporting port just near the complex. (Saving the investment cost up to 400 MMUS$)  Access to water intake for suppling sea water without residue. (Saving the investment cost up to 60 MMUS$)  Using the local power grid in the region for supplying the secure 100 MW power. (Saving the investment cost up to 120 MMUS$) Therefore, this location has suitable access to the Iranian Natural Gas Trunk-line (IGAT) and gas condensate as feed for the refineries. Moreover, the other available infrastructures such as jetty, sea water intake, power grid, etc. reduce the total investment cost of this complex by almost 800 to 1000 MMUS$. As a conclusion, the advantages and disadvantage of the location of Siraf refineries complex are as following.

Pros:

 Appropriate access to the gas condensate as feedstocks  Ten years tax holiday according to the National Regulation  Value Added Tax (VAT) free  Appropriate and Affordable Access to:  The Berth for exporting the refineries products  The Berth for importing the required materials and equipment  Sea water for supplying the required cooling water  Electrical grid to supply the required secure power  Natural Gas pipeline & other required fuels

Cons: Hill, slop and rough land

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1.3. Project Implementation

The project implementation method is as following. EPC + Finance Arrangement + Off-Taker Arrangement According to our estimation the total fix investment cost for the Siraf refineries complex, including eight independent refineries as well as common utilities and services units is estimated by 3 billion US$. It should be noted that the insurance fee, management fee, commitment fee and interest rate will be added to the EPC (Lump Sum) cost.

1.4. Project Financing

Financial Structure of the Siraf refineries complex is shown as following. Financial Structure for Siraf Refineries Complex

Feed Contract NIOC 9 (2)

1 Importer Exporter Export Contract (Buyer) 8 7 9 (3) Insurance 2 4 Off Taker

Company Loan Agreement

6 Repayment

3 Importer Creditor Repayment (Domestic) Bank 9

5 9 (1) Escrow Account Guarantor

NIOC: National Iranian Oil Company

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Due to economic benefits of the Siraf refineries project, many companies have shown their intention to finance the project. Negotiation with ECA, EPC contractors and off takers from different countries are consolidated in the following table.

Country EPC ECA Financer Ceiling Amount Guarantor Contractor Euler Hermes / AKA, Germany ThyssenKrupp 1,000 Million Euro Ministry of Finance DZ & Helaba Banks (Letter of Intent Issued by OETAI)

K-SURE / KDB Hyundai + Daelim 2,000 Million US$ Ministry of Finance (Letter of Intent Issued by OETAI) South Korea K-SURE / KDB GS 2,000 Million US$ Ministry of Finance K-SURE / KDB SK 1,000 Million US$ Ministry of Finance Japan NEXI + JBIC TOYO Under Negotiation Ministry of Finance Italy SACE Tecnimont / KT 1000 Million Euro Ministry of Finance UK UK Export Finance Supplier Credit 1,000 Million US$ Ministry of Finance Switzerland Serv Supplier Credit 300 Million Euro Ministry of Finance

Following EPC contractors have signed MOU with SRIC.

 Consortium of Hyundai Engineering & Construction Co., Ltd. + Daelim industrial Co., Ltd.  Maire Tecnimont + KT  Wison Engineering Ltd.

Other EPC contractors which expressed their interests to be involved on the project are as following.

 Marubeni  ThyssenKrupp  TOYO Engineering Corporation  Tidfore Heavy Equipment Group  GS Engineering & Construction

The international banks (financers) which send letter of support for financing the project are as following.

 Export-Import Bank of Korea  Korea Development Bank (KDB)

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 KB Kookmin Bank  AKA, DZ Bank, Helaba  Bank Gospodarstwa Krajowego (BGK)

The international insurance companies (ECAs) which send letter of intent (LOI) for supporting the project are as following.

 Korea Trade Insurance Corporation (K-SURE)  SACE  Euler Hermes  Swiss Export Risk Insurance (SERV)  UK Export Finance  KUKE  KYOBO Life Insurance Co., Ltd.

Also, we have received LOI from the following companies for off taking the Siraf refineries products.

 Itochu  Mitsui & Co.  Daelim industrial Co., Ltd.  E1 CORPORATION

Moreover, Sercobe and CNTIC have sent LOI for arranging finance.

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2. Main Macro-level Goals for Development of the Siraf Refineries Complex

2.1. Direct Goals

2.1.1. Private Sector Development In order to develop the private sector in Iran, some activities including developing phase of the project (including basic engineering design, licensors agreement, get the legal permission and financing), construction, operation and marketing of refineries’ products are handed over to the eight independent Iranian private sectors, which were selected by the Ministry of Petroleum.

Therefore, eight Siraf investors can obtain high level of experience in management of project, financing arrangement and marketing the refining products without government support, in addition to increase their affordability from high IRR and turnover of the project.

2.1.2. Public Domain Development For development of public ownership, the investors of eight Siraf refineries must provide at least 35% of their shares through stock exchanges, after construction of their refinery.

2.1.3. Increasing the Iran Refining Capacity The Siraf Refineries products include LPG, Light Naphtha, Heavy Naphtha, Kerosene (Jet A-1), Gas oil (Euro V) and Residue with the following production rate:

Products Million Tons / Year

Treated LPG 0.5

Treated Light Naphtha 4.5

Treated Heavy Naphtha 7.0

Kerosene (Jet A-1) 3.6

Gas oil (Euro V) 4.0 Total 19.6

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The annual production capacity of eight Siraf refineries is 19.6 million tons. The total Iran’s refining capacity is 2.16 million bbl/day (by considering the full capacity running of Persian Gulf star refinery) in 2017 and Siraf refineries will increase the Iran refining capacity by 22%.

The capacity of Iran’s oil and gas condensate refineries can be found in the following table.

Refinery Capacity % (,000 barrel / day) Abadan 366 14% Esfahan 373 14% Shazand 253 10% Kermanshah 21 1% Tabriz 108 4% Tehran 246 9% Shiraz 55 2% Lavan 57 2% Bandar Abbas 323 12% Persian Gulf Star 360 14% Sum 2162 Siraf Refineries 480 18% Total Sum 2642 100%

2.1.4. Increasing the Feedstock Capacity of Iran’s Petrochemical Complex According to Iran’s energy balance (2014), the total liquid feedstocks of Iran petrochemical complex is 65.9 million barrels of oil equivalents (MMBOE). The total LPG, Light naphtha and heavy naphtha production of Siraf refineries, which can be used as liquid feedstocks of Iranian petrochemical complex is 86.7 MMBOE. Therefore, by the operation of Siraf refineries, the potential of liquid feedstocks of Iran’s petrochemical complex will be increased by 130%.

In addition, according to Iran’s energy balance (2014), the total gas and liquid feedstocks of Iran’s petrochemical complex is equal to 151.4 MMBOE. Siraf refineries can increase the potential of total gas and liquid feedstocks of Iran’s petrochemical complex by 57%.

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Total liquid feedstocks of Iran’s petrochemical 65.9 MMBOE complex

Siraf Refineries

LPG 0.5 Mt / year 3.68 MMBOE

4.5 Mt / year Light Naphtha 6.7 Mcm / year 32.1 MMBOE

7 Mt / year Heavy Naphtha 9.3 Mcm / year 50.9 MMBOE

Sum 86.7 MMBOE

2.1.5. Impact of the Siraf Refineries Complex on GDP of the Country Gross annual income from sales of the Siraf refineries products is 13 billion US$. Gross added value from sales of the Siraf refineries products is 1.2 billion US$ per annum, which is 0.3% of Iran’s GDP in 2016.

Gross Annual Income from Sales of the Siraf Refineries Products (MMUS$) Treated LPG 304

Treated Light Naphtha 2,920

Treated Heavy Naphtha 4,640

Kerosene (Jet A-1) 2,576

Gas oil (Euro V) 2,752

SUM 13,192

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2.2. Indirect Goals

2.2.1. The South Pars gas field contains rich natural gas with methane, ethane, propane, and butane and gas condensate combinations. It is obvious that all of these combinations will be produced simultaneously, i.e., production of only one or two combination(s) cannot be possible. Therefore, maximum production rate from the South Pars gas field is possible when we have a plan to consume or sell all components of the rich gas such as gas condensate.

2.2.2. According to Iran’s energy balance report (2014), about 70% of the total country’s fuel supply is natural gas, of which 40% is supply through the South Pars gas refineries. Total gas and liquid feedstocks of Iran’s petrochemical complex is equivalent to 151.4 MMBOE, which the share of ethane gas is about 22 MMBOE (that is 15% of Iran’s petrochemical feedstocks).

2.2.3. It is evident that, country's dependence on methane and ethane production in South Pars is extremely high, both from economics and security points of view, and any disorder in the production of Methane and Ethane in South Pars, which means a disruption of South Pars gas production, will end in economics and security-related problems for the country. So, we have to have a plan to consume or export the other combinations of rich gas include Propane, Butane and Gas Condensate by considering the maximization of national interest. Due to the size of LPG market (300 Mt/year), export of LPG is simply possible. The market of gas condensate is buyer market not seller market. So, it is better to have a plan to consume or refining the gas condensates in the country. (Similar to Qatar Ras Laffan gas condensate refinery)

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As a conclusion, main macro-level goals for development of the Siraf refineries complex are as following:

 Prevent further sales of crude in favor of selling the end products

 Development of private sector and public ownership in Iran

 Production of 19.6 million tons refining products per year and increase the Iran’s refining capacity by 22%

 Increasing the liquid feedstock capacity of Iran’s petrochemical complex by 130%

 Increasing the potential of total gas and liquid feedstock capacity of Iran’s petrochemical complex by 57%

 Create about 1.2 billion US$ added value per annum on gas condensate and increase the Iran’s GDP by 0.3%

 Create 17,000 jobs in construction phase and 2,000 direct jobs in operation phase

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3. Quantitative Goals for Development of the Siraf Refineries Complex

3.1. Gross Income from Sales of the Siraf Refining Products

The main Siraf Refineries products include LPG, Light Naphtha, Heavy Naphtha, Kerosene (Jet A-1), Gas oil (Euro V). The annual production rate and gross income from sales of the products are as following table.

Production Rate Annual Gross (Mt/year) Income (MMUS$) Treated LPG 0.5 304 Treated Light Naphtha 4.5 2,920 Treated Heavy Naphtha 7.0 4,640 Jet A-1 3.6 2,576

Gas oil (Euro V) 4.0 2,752

Sum 19.6 13,192

3.2. The Economics of Siraf Refineries

A dynamic economic and financial model for the Siraf gas condensate refineries has been developed. The feed and products prices that used in the economic model are indicate in the following tables. Note that the Siraf refineries have 5% discount for the condensate feed price in comparison to FOB Persian Gulf price. (In order to eliminate the fluctuations in the feed and products prices that occurs in the refining industry, we decided to use the average price of feed and products for the last 7 years, 2010-2016).

720 $/ton Condensate Price (FOB PG) Reference Prices: Ave. 2011 to 2016 84.70 $/bbl

684 $/ton Condensate Price (With 5% Discount for Siraf Refineries) 80.47 $/bbl

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Product Price Reference Prices: Ave. 2011 to 2016

Product US$/Ton US$/bbl

LPG 700.0 63.2 Light Naphtha 729.0 76.9 Heavy Naphtha 740.0 87.7 Kerosene 792.2 99.7 Gas oil 768.2 100.7

Residue* 711.0 99.2 * It is assumed that the residue price is equal to gas oil 2,500 ppm price.

 The capacity of each Siraf refinery is 60,000 BPSD (equivalent to 7,027 TPSD)  Total Fix Investment Cost for each refinery = 264 MMUS$ (approximately)  Construction Period = 3 Years  Investment breakdown during construction period = 52.5 MMUS$ (year 1), 132 MMUS$ (year 2), 79.5 MMUS$ (year 3)

The net capacity factor of a plant is the ratio of its actual output over a period of time, to its potential output if it were possible for it to operate at full nameplate capacity continuously over the same period of time. The Siraf refineries capacity factor with regards to major overhauls period is shown as following figure.

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The result shows that the Internal Rate of Return (IRR) and Net Present Value (NPV) of Siraf refineries are 23% and 212 MMUS$, respectively.

IRR 22.8%

NPV@12% (MMUS$) 211.6

The refining margin is the difference between the wholesale value of the refinery products and the value of the crude from which they were refined. The results of the economic model show that the calculated Siraf refineries margin is 7.5 $/bbl with above-mentioned reference prices.

Siraf Refineries 7.5 $/bbl Margin 63.7 $/Ton

Crack spread is a term used on the oil industry and futures trading for the differential between the price of crude and products extracted from it. Crack spreads of the Siraf refineries product is shown in the following figure.

Crack Spread ($/ton)

Gas oil 84.2

Kerosene 108.3

Heavy Naphtha 56.0

Light Naphtha 45.0

LPG 16.0

0 20 40 60 80 100 120

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In order to investigate the impact of feed and product prices on refinery economics, the average of FOB Persian Gulf prices for different years used to achieve more actual results. The prices that used for feed, and main products are shown in the following table.

Condensate Naphtha Gas oil Kerosene ($/bbl) ($/mt) ($/bbl) ($/bbl)

Ave. 2010 - 2016 84.7 731.8 100.2 99.2

Ave. 2015 50.7 452.0 63.1 62.5

Ave. 2016 (First Half) 37.7 352.8 46.0 46.4

Economic results of the Siraf refineries include the refining margin, IRR and NPV@20% are shown in the following table.

Margin NPV@12% IRR ($/bbl) ($/ton) (MMUS$)

Ave. 2010 - 2016 7.5 63.7 22.8% 211.6

Ave. 2015 6.3 53.7 21.7% 163.3

Ave. 2016 (First Half) 5.7 48.3 20.3% 131.0

The results show that by 55% decrease in feed price (from 84.7 to 37.7 $/bbl), the Margin and IRR will be reduced by 24% and 11%, respectively. That is, if crude price falls, the refineries economics will not be reduced in the same proportion.

Business as Usual (BAU) By 90% decreasing the working capital (equal to 14 MMUS$) the Internal Rate of Return (IRR) reaches 30.7%.

Best Case Analysis Economics of oil and gas refineries is mostly sensitive to margin.

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As can be seen in the bar chart, by 9 $/bbl refining margin, Internal Rate of Return (IRR) of Siraf refineries reaches 40%.

3.3. The Impact of Siraf Refineries Complex on the Economy of Country

Gross annual income from the sales of Siraf refineries products is 13 billion US$, which is about 3% of Iran's GDP. Gross added value from sales of the Siraf refineries products is 1.2 billion US$ a year, which is 0.3% of Iran’s GDP in 2016.

Considering full operation of the Persian Gulf gas condensate refinery, the total refining capacity of the country, is about 2.16 million barrels per day. 19.6 million tons are added annually to the country's refining capacity through construction of the Siraf refinery complex. Therefore, the Siraf gas condensate refineries will increase the Iran’s refining capacity by 22%.

Also, according to Iran’s energy balance (2014), the total gas and liquid feedstocks of Iran’s petrochemical complex is equal to 151.4 MMBOE. Therefore, eight Siraf refineries can increase the potential of total gas and liquid feedstocks of Iran’s petrochemical complex by 57%.

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3.4. Estimated Workload of the Siraf Refineries Complex

According to the basic engineering design, estimated workload of the Siraf refineries complex is as following.

I. Equipment

Section Unit Value

Fixed Ton 39,700

Num. 414 Vessel Ton 7,000 Num. 137 Tower Ton 14,500 Num. 640 Heat Exchanger Ton 7,000 Num. 151 Air Cooler Ton 9,000 Num. 20 Reactor Ton 2,200

Rotary

Pumps Num. 1,140 Process Compressor Num. 48 Air Compressor Num. 27

Fired

Num. 48 Heater MW 1,000 Flare Num. 4

Storage Tanks

Million m3 4.4 Storage Tanks Ton 80,000

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II. Bulk Material

Section Unit Value

Piping

Piping Inch. meter 10,000,000 Inch. diameter 3,100,000 Piping & Fittings Ton 50,000

Painting & Insulation

Painting m2 1,600,000 Insulation m2 185,000

Civil & Structure

Concrete m3 500,000 Steel Structure Ton 80,000

Electrical & Instrument

Power Cable Kilometer 9,500 Instrument Cable Kilometer 2,800 DCS/ESD/F&G Input / Output Number 50,000

III. Industrial & Non-Industrial Buildings

Section Unit Value

Area of Industrial & Non-Industrial m2 120,000 Buildings

Ton of Cooling load 6,000 Refrigeration

According to our estimation, total fix investment cost for the Siraf refineries complex including eight independent refineries as well as common utilities and services units is equal to 3 billion US$, approximately. It should be mentioned that around 50% of the project goods and services will be supported by domestic manufacturer, consultant and contractor companies.

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3.5. Direct and Indirect Job Opportunities

It is anticipated that Siraf refineries complex will create 17,000 jobs in construction period and 2,000 direct jobs in operation period.

As a conclusion, quantitative goals of Siraf project are as following:

 Annual 19.6 million production volume of refining products, and an increase of 22% in refining capacity of the country  Generating $13 billion gross annual revenue from selling refinery products  Generating annual $1.2 billion added value  Minimum 23% internal investment rate of return of the project  An increase of 0.3% in GDP of the country  Creating around $1.5 billion works for manufacturers, consultants, and domestic contractors  Creating 17,000 job opportunities during the construction period  Creating 2,000 direct job opportunities during operation period  An increase of 130% in petrochemical liquid feed capacity of the country  An increase of 57% in total feed capacity of gas and liquid petrochemicals in the country

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