Energy Technologies and Environmental Protection

April 3rd, 2006, Bucharest

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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

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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.

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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

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►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

Positive financial results in 2005

RON mn 2005 2004

Earnings before interest and taxes (EBIT) 1,884 (581)

Earnings before interest, taxes, depreciation and amortization (EBITDA) 2,775 114

Net income 1,416 (974)

Turnover 10,760 8,688

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Energy Trends 2030 for EU25Representative of Europe

Change in energy consumption EU-25

0

200

400

600

800

1990 2000 2010 2020 2030

mto

e

OilGas

Coal

Nuclear energy

Renewables

High price scenario

Baseline scenario

► Shows rising energy demand► Trend shows switchover to lower carbon fuels► Switch depends on Price scenario

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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

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

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Products

► Reduce air pollution of product use

► Reduce energy consumption during product use

► Lower carbon fuels

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

Oil & Gas Technologies and the Environment Protection Challenges

Our contribution: pioneering solutions in both areas!

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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

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

Oil & Gas Technologies and the Environment ProtectionPetrom contribution

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Oil & Gas Technologies and the Environment ProtectionPetrom contribution

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

Thank you!