Energy Technologies and Environmental Protection

1. Energy Technologies and Environmental Protection April 3rd, 2006, Bucharest

2. Petrom – the largest oil and gas producer in South Eastern Europe Exploration and Production • Estimated reserves of approximately 1 bn boe. • Crude production in 2005: 5.2 mn tons • Gas production in 2005: 6.2 bn cubic meters • Petrom owns concession rights of development and production for 19 blocks, including 300 commercial oil and gas reservoirs • In Kazakhstan, the company owns 6 concessions for exploration and production

3. Petrom – the largest oil and gas producer in South Eastern Europe Refining • The largest refining operator in Romania • Its two own refineries, Petrobrazi and Arpechim, have an annual refining capacity of 8 million tons • The crude processed in 2005: 6,399 thousand tons • Both refineries produce fuels in accordance with the European standards for environment and quality.

4. Petrom – the largest oil and gas producer in South Eastern Europe Marketing • Leader of the Romanian retail market, with a network formed of 550 filling stations • International network of 82 filling stations in Moldavia and Hungary • Sales volume in 2005: 5,046 thousand tons • In 2005 a new concept for the filling stations was launched, Petrom V, which sets new industry standards • In 2005, the company introduced an efficient system for the administration of the filling stations, called Full Agency

5. Positive financial results in 2005 • EBIT turned positive as Petrom benefited from a favorable environment and an improved controlling of the operating costs • Proposed dividends to the General Meeting of Shareholders: RON 738.4 mn

6. Oil Gas Baseline scenario High price scenario Coal Nuclear energy Renewables Energy Trends 2030 for EU25Representative of Europe • Shows rising energy demand • Trend shows switchover to lower carbon fuels • Switch depends on Price scenario

7. Predicted Energy Trends for Romania • Similar trends to those in Europe: • rising energy demand; • some switchover to lower carbon fuels • switch again depends on price

8. Petrom 2010Dominating the integrated oil and gas market in South Eastern Europe

9. Products Reduce air pollution of product use Reduce energy consumption during product use Lower carbon fuels Oil & Gas Technologies and the Environment Protection Challenges • Production • Reduce contamination of the environment with hydrocarbons (spills, leakages, emissions) to as low as reasonable practical • Reduce energy intensity • Increase operational efficiency • Optimize waste management • Our contribution: pioneering solutions in both areas!

10. Products Fuel and heating oil quality – EU standard earlier than necessary Gas to Oil ratio (app. 50/50) Biofuels (planned to ensure blending in accordance with Directive 2003/30/EC of 8 May 2003 on the promotion of the use of biofuels or other renewable fuels for transport) Consumer information on environmentally friendly product use Oil & Gas Technologies and the Environment ProtectionPetrom contribution • Production • Raise technical standards to EU level of existing plants • Raise awareness among total workforce about environmental issues • Introduce voluntary standards e.g. zero flaring policy for offshore platforms • Enhanced oil recovery and underground storage of natural gas

11. Total investment until 2010 - 3 bn EUR sustain growth of the company raise environmental standards and efficiency (less CO2 per unit of product produced) maintain a strong gas business (less carbon intensive than oil) secure energy supply for Romania Oil & Gas Technologies and the Environment ProtectionPetrom contribution

12. Thank you!