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Signing $75bn Worth Agreement
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Managing Director of Pars Oil and Gas Company referred to
the circulation of 30,000 billion rials in participation bonds and 3 billion
euros in foreign exchange participation bonds and said circulation and selling
of the bonds have been permitted and the bonds would soon be circulated.
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Oil Minister Masoud Mir-Kazemi announced
the signing of a $75 billion agreement with a syndicate comprising a number of
local banks and financial institutes in order to maintain parts of financial
resources of the oil industry.
Mir-Kazemi put the required investment
for the upstream oil sector in the Fifth Development Plan (2010-2015) at $125
billion and said out of the figure 45 to 50 billion dollars will be supplied
from domestic resources and the remaining 75 billion dollars from foreign
resources.
He said talks with other financial
institutes will be finalized in March and April next year and the results will
be announced subsequently.
He expressed hope that by maintaining
the required financial resources, executive operations of other South Pars
phases will be launched next year.
On talks with a number of countries for
their presence in Iran’s oil projects, the oil minister said Iran welcomes the
presence of foreign companies; otherwise based on predictions that have been
made, supply of financial resources which are needed for implementation of the
projects will come from other sources.
Oil & Gas Bank:
The oil minister
pointed to the formation of an Oil and Gas Bank next year and said so far a
number of sessions have been held for this purpose, adding that the bank would
become operational next year and would lend serious support for oil industry
projects.
He also referred
to the formation of a group for prioritizing projects in the oil industry and
said as of the Iranian calendar month Shahrivar (August-September) this year,
the group would be formed for allocation of budgets and, in case financial
resources were limited, projects would be funded according to their priority.
Investment
Permit for South Pars Phases, 40 Priority Projects:
Deputy Oil Minister for Planning
and Supervision over Hydrocarbon Resources (PSHR), Mohsen Khojasteh Mehr, said
due to the special measures adopted by the oil minister and supports of the
workgroup of special representatives of the president in oil-related affairs,
permits have been issued for investment in the remaining phases of South Pars
and 40 priority projects in the Oil Ministry.
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The oil minister pointed to the formation of an Oil and Gas
Bank next year and said so far a number of sessions have been held for this
purpose, adding that the bank would become operational next year and would
lend serious support for oil industry projects.
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Mentioning that the decision was adopted
at the first session of the workgroup late last week, Khojasteh Mehr stressed
that through follow- ups and emphasis of the oil minister for accelerating
development of South Pars phases, the workgroup permitted the Oil Ministry to
make an investment of up to $4.5 billion for both the standard phases of South
Pars (remaining phases within a period of 35 months) and sign the required
agreement in this case. The Oil Ministry is deputy bound to define the two
standard phases.
He further remarked that the investment
permit for all the remaining phases at South Pars, including phases 13, 14,
19, 20 and 21 as well as phases 22 to 24 was approved by the workgroup.
The deputy oil minister termed the
decision as unprecedented and an important step towards South Pars
development. He said in the current year, development of the joint fields,
especially South Par, would be the priority of the Oil Ministry.
40 Oil Industry
Projects, Top Priorities for Investment:
Among other approvals of the
workgroup, Khojasteh Mehr pointed to the investment permit for priority
projects and said according to its decision the workgroup approved the
required permit for over 40 projects in the oil industry within four major
companies and placed them atop the prioritized projects for investment.
He said out of
the 40 projects, 22 belong to the National Iranian Oil Company (one of which
includes 14 projects out of internal resources of the company), 8 projects
belong to the Refining and Distribution of Oil Products Company at present and
future refineries and transfer pipelines, 9 projects belong to the National
Petrochemical Company and one project to the National Iranian Gas Company.
Permit Obtained
for $48bn Investment:
Referring to other approvals of the
workgroup of special representatives of the president in oil-related affairs,
Khojasteh Mehr said according to the previously concluded agreements between
the Oil Ministry and domestic banks and financial institutes ($75bn of
agreements), permit for investment of $48bn was obtained from the workgroup.
Therefore,
Khojasteh Mehr added, out of the $48bn a fund of over $18bn will be supplied
by a consortium of domestic banks, led by Bank Mellat in the form of energy
fund, for implementation of 35 projects and $30bn for implementation of 36
projects by Bank Saderat Iran.
6bn Euro
Participation Bonds for South Pars Development:
Managing Director of Pars Oil and
Gas Company, Ali Vakili, referred to the circulation of 30,000 billion rials
in participation bonds and 3 billion euros in foreign exchange participation
bonds and said circulation and selling of the bonds have been permitted and
the bonds would soon be circulated.
Speaking at a press conference on the
sidelines of the 15th International Oil, Gas, Refining and
Petrochemical Exhibition, Ali Vakili said the oil minister, since the start of
his activity at the Oil Ministry, has targeted the Achilles Heel of
development in the oil industry, i.e. supplying financial requirements.
Further elaborating, Vakili said the oil
minister, through the president’s support, has organized Central Bank’s
resources through domestic banks and in the form of energy fund has employed
other financial mechanisms for development of projects in the oil industry,
especially at South Pars.
As for the allocation of financial
resources this year to phases 15 to 18 at South Pars, he said last year upon
government permission it was approved to circulate and distribute foreign
exchange participation bonds for the development South Pars, the first phase
of which was carried out with circulation of 250 million euros.
Vakili further added that financial
resources obtained through selling 250 million euros in participation bonds
for the development of South Pars last year through cooperation of Bank
Mellat, were spent on the development projects for phases 15 to 18 at South
Pars.
Stressing that the second part of the
foreign exchange participation bonds for development of South Pars, with a
value of 750 million euros, would be circulated soon, Vakili said financial
resources to be obtained through selling the said participation bonds would be
directly allocated to phases 15 to 18.
According to the official, last year
three billion euros in participation bonds was proposed to the Majlis for
allocation to Pars Oil and Gas Company with the support of the National
Iranian Oil Company.
He said the Majlis approved distribution
of five billion euros in participation bonds by the National Iranian Oil
Company of which three billion euro belongs to Pars Oil and Gas Company which
is predicted to be gradually circulated and distributed this year.
Managing director of Pars Oil and Gas
Company also referred to the approval for circulation of 30,000 billion rials
in participation bonds which is allocated to South Parts projects with the
participation of Pars Oil and Gas Company.
According to the official, the company
had held negotiations with operating banks and it is forecast that the first
part of the bonds will be sold soon.
Allocation of
$5bn Credit:
Elsewhere in his remarks, Vakili said this year 40 percent of domestic
investment of the National Iranian Oil Company would be allocated to South
Pars, adding that a credit of up to $5bn out of domestic financial resources
would be absorbed by projects for development of the gas field.
Stressing that based on the predicted
arrangements, this year there would remain no problem in supplying the
financial resources at South Pars, Vakili said 40 percent of the total
domestic investment resources of the National Iranian Oil Company would be
allocated to development of South Pars.
According to Vakili, the investment had
been calculated by selling each barrel of oil at $65 which is fortunately
above that figure at present. Therefore, he added, allocated resources would
increase as well.
The managing director of Pars Oil and
Gas Company predicted that in case price of oil remains stable in the current
year, out of domestic financial resources a budget of about $5bn will remain
for the development of South Pars field. |
