Iran to Issue Oil Bonds

Iran to Issue Oil Bonds Iran to Issue Oil Bonds

Iran will issue bonds in the coming months to fund oil projects, the head of Securities and Exchange Organization said on Tuesday, a month after the United States withdrew from a nuclear deal and said it would reimpose unilateral sanctions. It was not immediately clear whether Iran would seek foreign buyers for the bonds, something which could prove difficult given concerns among western companies that they could be penalized by Washington for continuing to work with Tehran, Reuters reported.

The US sanctions on Iran’s petroleum industry will take effect on Nov. 4, but many European refiners, as well as buyers in Asia, are already winding down Iranian oil purchases. In May, French oil major Total said it might pull out of its investment in Iran’s South Pars Gas Field if it cannot secure a waiver from the US government.

“The Securities and Exchange Organization and Oil Ministry have been negotiating for one and a half years over issuing bonds for oil projects ... We are hopeful that this would be implemented in a few months,” Shapour Mohammadi, the head of SEO, was quoted as saying by IRNA.

“This will help all Iranians participate in making investment in oil projects,” he added.

Oil Minister Bijan Namdar Zanganeh said last month that foreign investment was needed to develop the oil industry, but would survive even if foreigners decide to stay away.

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