Preface

Foreword

NIOC History

Address by the minister of petroleum

Address by managing director of NIOC

NIOC's Organizational chart

Members of the General Assembly

Board of Director

This issue of the series of NIOC "Annual Report" covers activities and programs reported by NIOC directorates and subsidiaries from March 20/2003 to March 20/2004. it is hoped that the present provides useful data about NIOC.

NIOC is one of the major companies affiliated with petroleum Ministry which deals with exploration and production of oil and gas . After petroleum industry nationalization, in 1950 NIOC started its activities; and at present it is considered to be the third major oil company in the world. The major activities of NIOC include crude oil and gas exploration, production, marketing and export. And in line with this, NIOC enjoys cooperation and activity of 23 subsidiary and affiliated and companies.

   Based on global requirements and in order to achieve efficient methods of more economic performance, during recent years, the organizational structure of the company has undergone many changes so that in addition to rather desirable settlement of decentralized management and speeding up decision making, more favorable conditions are prepared for performance of its subsidiary companies in the form of economic firms.

Address by

The Minister Of Petroleum

t was through implementation of modern development plans in upstream and downstream sectors, which have been commenced since 1997, petroleum Ministry has surpassed year 2003 and has achieved considerable success. It was for the seventh consecutive year that the total volume of discovered oil and gas reserves the volume produced, so that in this year 6.6 billion bbls oil-in-place and 359 bcm gas-in-place was discovered.

In addition, sustaining the 4.2 million bl/d crude oil production capacity potential and 378 bcm actual rich gas production, in comparison with previous years, established a new record in operational activities. While observing crude oil production quota determined by OPEC, gas production has enjoyed a 12.6% growth rate.

    In 2003, the daily export of crude oil and other oil products amounted to 2.51 million bbls/d. in the same year, through increasing natural gas export from 1.64 bcm to 4.84 bcm; and establishment to develop LNG projects, Islamic Republic of Iran has been seeking for a new position in the international gas markets. It is clear that increasing the number of cities and villages under coverage of gas networks respectively from 437 to 480 and 675 to 1203 is considered to be among the most important measures taken by "petroleum Industry" in supplying the domestic consuming energy, observing environmental issues and consuming a cleaner fuel. Meanwhile, due attention has paid to promoting the position of petrochemical industry.

    Finally, would like to say that without efforts, innovation and creativity of the hones and sincere staff and experts of "petroleum Industry", taking the above- mentioned measures was inaccessible. Taking benefit from the above factors, and appropriate ground for foreign and local investors is prepared and international oil companies are persuaded to cooperate with petroleum industry.

Address by

Managing Director of NIOC

t present, NIOC which holds 132.74 billion bbls crude oil reserves and 27.45 thousand bcm (TCM) natural gas, is considered to be one of the major oil companies in the world, which has achieved a significant part of this glory in 2003. Exploring 6.6 billion bbls oil – in – place and 359 bcm gas – in – place, for the seventh consecutive year, NIOC has succeeded to explore volumes of oil and gas reserves which, in comparison with the previous year, has surpassed the amount produced in this year.

Holding such amount of oil and gas, Islamic Republic of Iran ranks the second after Saudi Arabia, among oil producing countries and the second, after Russia, among gas producing countries in the world.

    It is clear that upstream development activities not only include the above-mentioned cases, but also include launching international tenders for development of exploration activities in different regions of the country which is considered to be among the important measures taken by NIOC for establishing a promising a promising outlook. For example, development of the southern part of huge azadegan oil field through getting help from Japanese companies in one of the most important development activities in upstream sector. Its operation getting completed, the oil production of this field increases by 260,000 bl/d. In the meantime, doing development activities in common oil and gas fields with the neighboring countries is among other outstanding goals of NIOC in upstream sector.

    Maintaining the production capacity of 4.2 mmbl/b based on OPEN quota and 378 mmscm/b actual rich natural gas is among the other activities of NIOC in 2003, which in addition to supplying the domestic need, has had an effect on oil and gas international markets through its steady presence. Moreover, paying attention to
R & D through taking benefit from global upto date developments and technologies and establishing mutual relationship with international scientific and Research Institutes is among the other strategic goals of NIOC to create more stability in the upstream sector of petroleum industry of country. Among other outstanding measures taken by NIOC is promoting its own position among other major oil companies in the world and observing the latest environmental regulations developed in the world, through settlement of health , safety and environment management system.

chairman (president of the I.R. of Iran)

vice chairman (Minister of petroleum)

Minister of Economic Affairs & Finance

Minister of Industry & Mines

Minister of Energy

Minister of Labor & Social Affairs

Iran's Vice president & Director of Planning & Management Organization

B.N. zanganeh

chairman (Minister of petroleum)

S.M. Mirmoezzi

Deputy Minister of petroleum & president

S.M. Mosseini

Deputy of president

H.Kazempoor Arsdebili

senior Advisor to the minister of petroleum

A.Kardor

finance Director

S.M.Mohaddes

Exploration Director

M.R.Moghaddam

corporate Planning Director

S.A. sadrossadat

Administration Director

S.M. Zeinoddin *

Legal Affairs Director

M.A. Emadi *

R & D Director