TEHRAN – Iran will issue 10 trillion rials (some $820 million) in bonds to finance the South Pars gas field development projects, said the managing director of Pars Oil and Gas Company.
Mousa Souri told the Mehr News Agency on Saturday that the gas field’s output will be increased to 800 million cubic meters (mcm) per day from 300 mcm once all the phases of the development plan come on stream.
On September 24, the Iranian oil industry can be developed more through channeling people’s financial assets into projects.
Some 40-50 billion dollars should be invested annually in the oil sector, Mohsen Khojasteh-Mehr added, the Shana news agency reported.
He referred to buy-back and issuing bonds as the methods of financing oil projects.
In July, Iran’s central bank opened a $10 billion line of credit for several upstream domestic oil projects.
Projects will also be funded by using 18 percent of the National Development Fund’s assets, selling $10 billion of foreign currency bonds and 15 trillion of rial-denominated bonds, and by selling $10 billion-worth of shares in Oil Ministry properties.
Iran puts 20 percent of its oil revenues into the development fund, which will reach $55 billion by the end of the Iranian year on March 20, 2013.
The South Pars gas field is shared by Iran and Qatar. The Iranian share, which is divided into 29 phases, has about 14 trillion cubic meters of gas, or about eight percent of total world reserves, and more than 18 billion barrels of liquefied natural gas.