TEHRAN – The Iranian Oil Ministry plans to issue $10 billion worth of bonds to finance oil and gas projects in the next Iranian calendar year, which begins on March 21.
The plan is in line with next year’s national budget bill, which was recently submitted to the Iranian parliament, the Fars News Agency reported.
On Wednesday, the administration of President Mahmoud Ahmadinejad submitted the 7.3 quadrillion rial (about $595.4 billion) national budget bill for Iranian calendar year 1392.
The proposed national budget has increased by 22 percent compared to the previous year.
In July 2012, Oil Ministry official Mohsen Khojasteh-Mehr said the Central Bank of Iran had opened a $10 billion line of credit for a number of national oil projects in the upstream sector.
The national oil projects have a number of sources of finance, such as access to 18 percent of the assets of the National Development Fund and the funds acquired through the issuance of $10 billion in foreign currency bonds, the issuance of 15 trillion rials in other bonds, and the sale of $10 billion of shares and properties of the Oil Ministry, Khojasteh-Mehr told the Shana News Agency.
In April, Oil Minister Rostam Qasemi said that the global economic sanctions against the Islamic Republic would not hinder the development of the country’s oil industry.
The Oil Ministry is committed to accelerating the implementation of its development plans, financed through the financial system and through government bonds, he said.
Iran ranks fourth worldwide with 155 billion barrels of recoverable oil reserves, after Venezuela, Saudi Arabia, and Canada.
With 34 trillion cubic meters of natural gas reserves, Iran has the world’s second largest natural gas reserves after Russia.
Source: Tehran Times