$500m in bonds to fund SP development plan

Business Materials 26 July 2010 11:54 (UTC +04:00)

Some $500 million worth of bonds will be offered to the public for the development of the South Pars gas field.

Managing Director of Pars Oil and Gas Company (POGC) Ali Vakili told SHANA news agency that the bonds will be offered by August 21.

Investment in Iran's South Pars gas field has hiked by 120 percent in the current Persian calendar year, the top Iranian energy official says.

Vakili told IRNA news agency on Saturday that the boom was the result of the issuance of 3 billion euro in foreign currency bonds and $3,014 billion in national participation bonds, Press TV reported.

South Pars is the world's largest gas field located in the Persian Gulf. It holds an estimated 50.97 trillion cubic meters of natural gas.

Vakili added that investment in South Pars had surpassed $11 billion.

"Due to accurate planning this year there will be no problems with regard to funding the South Pars project," Vakili said.

This is while, the United Nations Security Council imposed a fourth round of sanctions against Iran over its nuclear program on June 9 despite assurances from Tehran that its nuclear program is peaceful and under complete surveillance of the International Atomic Energy Agency.

While the U.S. possesses and has used nuclear weapons in the past, Washington, in a politically-motivated move, has imposed unilateral sanctions against Iran, which does not possess nuclear weapons nor does it seek to develop such weapons.

Iran argues that as a signatory to the Nuclear Non-Proliferation Treaty (NPT) it has the right to peaceful nuclear technology for civilian electricity generation and medical research.