The Petroleum Industry in Syria

SYROIL 2012

2 – 5 April

Overview of the Syrian Economy

• Area: 185,180 km2

• Population 19,314,747

• Natural resources: Petroleum, Phosphates, Chrome and Manganese Ores, Asphalt, Iron Ore, Rock Salt, Marble, Gypsum, Hydropower

• Economy growth: 3.3 % in real terms in 2007

• GDP (purchasing power parity): $78.04 billion

• GDP (official exchange rate): $24.26 billion

• GDP - real growth rate: 5.1

• GDP - per capita (PPP): $4,100

• GDP - composition by sector: agriculture: 24.8%, industry: 25.1%, services: 50.1%

Overview of the Syrian Economy

• Exports: $9.713 billion

• Exports Commodities: Crude Oil, Petroleum Products, Fruits and Vegetables, Cotton Fiber, Clothing, Meat and Live Animals, Wheat, and Pharmaceutical Products

• Exports Partners: Iraq 27.3%, Germany 12.2%, Lebanon 9.5%, Italy 6.6%, Egypt 5.3%, Saudi Arabia 4.7%

• Imports: $10.54 billion

• Imports Commodities: Machinery and Transport Equipment, Electric Power Machinery, Food and Livestock, Metal and Metal Products, Chemicals and Chemical Products, Plastics, Yarn, Paper

Economic Reform Programme

• Full implementation of the Greater Arab Free Trade Agreement (GAFTA) since January 2005

• Initialing the Syrian — EU Association Agreement in 2004

• The Free Trade Agreement (FTA) with Turkey, which follows the pattern of the Syrian — EU Association Agreement, entered into force in 2007

• Preferential Trade Agreement (PTA) was signed with Iran in 2005

• Simplifying and enforcing foreign trade regulations, and working to completely eliminate the Negative list of imports (90% of the commodities have been liberalized till now, and efforts are ongoing for further liberalization)

• Ongoing efforts on both national and international levels regarding the accession of Syria to the WTO

Overview of the Oil Industry

• Proven geological oil reserves are estimated at 25.3 billion barrels

• Main location: in the central and northeastern parts of the country

• Nearly 40% of the country's territory is operated by Syrian Petroleum Company

• Remaining parts are opened to foreign companies under production sharing contracts which are mainly:

– Shell: 132,000 barrels/day in 2007 through a joint venture (Al Furat Petroleum Company) with SPC

– Total: 26,000 barrels/day in 2007 through its joint venture (Deir Ezzor Petroleum company)

• Exploration activity accelerated in the past five years involving companies from Canada, China, India, Croatia and Russia. Shell itself was granted two additional exploration concessions in 2006 covering 14,000 square kilometers in the southeast of the country.

Overview of the Gas industry

• Natural gas production reached 18 million cubic meters/day in 2007 of which 87% was used for electric power generation and 13% for major industrial plants.

• The government has plans to convert power plants and heavy industries from oil to gas feedstock to make more crude oil available for export.

• Shell will devise a master plan for the development of the gas sector in Syria, following an agreement signed with the Ministry of Petroleum. The agreement includes an assessment of the overall undiscovered gas potential in Syria, potential for upstream gas production, need for gas transmission and distribution networks and the opportunities for small

The 10th 5 year PlanOil & Gas Sector

The Vision of the Oil & Gas Sector

• To consider petroleum products and in particular natural gas as a main factor for economic growth

• Supporting the industrial sector through securing its oil & gas requirements

• Using natural gas as a major source for electricity

• Increase the local refining capabilities in order to provide higher value added petroleum products

• Reach self sufficiency in providing fuel for transports and home consumption

Goals

• To sustain the current contribution of 20% to the GDP

• To provide all the local petroleum related needs through:

– Intensify exploration activities for both oil & gas

– Develop the current production methods

– Implement advanced extraction methods

– Implement efficient management systems

– Develop the local refining capacities

• Achieve a surplus of oil & gas production

• Build regional strategic alliances

• Sustain the environmental requirements

Programmes and ProjectsProgramme Invested amount Outcomes

Developing the fields operated by the Syrian Petroleum Company and establishing services companies

US$ 383 Million Achieving a production level of 230,000 barrels per day

Oil & Gas Exploration US$ 256 Million Increasing the number of explored blocks

Buying petroleum and drilling equipments

US$ 170 Million Promoting the technological capabilities of the Syrian Petroleum

companies

The central region gas project US$ 640 Million Production of 9 million cubic meter per day

Revamping current gas factories and gas gathering stations

US$ 43 Million Stabilizing the current production

The Arab Gas Project US$ 256 Million Gas equipments supply

Refineries projects (constructing new refinery and revamping the existing

two old refineries)

US$ 2022 Million Refining 140 thousand barrel per day

The 8th Syrian Int’l Oil & Gas ExhibitionSYROIL 2012

2 – 5 April

Basic Facts & Figures

• Number of Exhibitors: 267 (SYROIL 2010 data)

• Number of Foreign Exhibitors: 199 (SYROIL 2010 data)

• Countries represented: 41 (SYROIL 2010 data)

• Number of Visitors: 8,243 (SYROIL 2010 data)

• Exhibiting Space (gross): 16,500 sqm (SYROIL 2010 data)

• Periodicity: Biennial

• Date of Creation: 1998

Visitors’ Nationalities

Nationality

Percentage

Europe

40%

Syria

26%

Middle East & Africa

22%

Asia

6%

Others

6%

Visitors’ Profile

Type of Activity

Percentage

Oil & Gas Operating Co. 26 % Oilfield Services 12 % Project Management \ Consultancy 8 % Governmental Bodies 6 % Construction Co. / Engineering Co. 6 % Oil / Gas Distribution 5 % Safety Equip 5 % Businessmen 5 % Petrochemical / Refining 5 % Others 4 % Pipeline Design \ Laying \ Construction 4 % Drilling Co. 4 % HR / HSE / Training 3 % Rig Equipment 3 % Press 2 % Insurance / Finance 2 %

For further information, please contact:

Allied ExpoTel: +963 – 11 – 332 4801Fax: +963 – 11 – 332 1250

alliedexpo@mail.sywww.syroil.com