Gov’t to Issue Bonds for Oil, Gas Projects

Gov’t to Issue Bonds for Oil, Gas ProjectsGov’t to Issue Bonds for Oil, Gas Projects

While proceeding with part of the budget pertaining to the government’s expenditures, members of the parliament on Sunday provided for issuance of 150 trillion rials ($5.4 billion) of fixed-rate participatory bonds for implementation of semi-finished oil and gas projects, as well development plans of joint oil and gas fields, ISNA reported.

The parliament had previously authorized the government to issue 100 trillion rials ($3.6 billion) worth of participatory bonds as part of next year’s budget (begins March 21) for implementation of projects deemed economically and technically viable, with priority having been given to development of joint oil and gas fields, restraint of underground water resources, water supply and desalination projects, wastewater projects, power plants, and gas-to-chemical projects.

Moreover, under a proposal approved by parliament last Tuesday, government is authorized to withdraw up to $4.8 billion from the sovereign wealth fund, the National Development Fund of Iran (NDFI), for developing oil and gas fields through next year.

The NDFI balance is estimated at about $62 billion, according to the Sovereign Wealth Fund Institute.

After the plunge in oil prices over the last several months cut its oil revenues, the government slashed the oil price assumption in next fiscal year’s budget to $40 a barrel from $72.

Oil industry requires $30 billion investment per annum for maintenance, production stability, and development projects, deputy oil minister Mansour Moazzami said Saturday.