Iran to invest $12 billion in South Pars gas fields

Business Materials 6 January 2011 13:25 (UTC +04:00)

Azerbaijan, Baku, Jan. 6 / Trend, A.Yusifzade /

Regarding diversity in financial resources it is predicted more than $12 billion to be invested in the South Pars gas field's development plan during the next Iranian calendar year, 1390, starting on March 21 2011, managing director of the Pars Oil and Gas Company (POGC) Ali Vakili was quoted by Shana as saying.

Ali Vakili also said it is expected this Iranian year's (ending on March 20) total investment at the South Pars gas field projects to rise to $12 billion.

Noting that issuance of bonds is not the only source of providing money for the South Pars projects, the official said that needed financial resources to develop South Pars gas field phases are being provided through different channels including issuance of foreign exchange and IR Iran denominated bonds, buyback contracts, finance and energy funds. 

Stressing that financial situation of four big projects at the South Pars gas field is clear through the whole process of their completion; Dr. Vakili noted that in addition to issuance of bonds POGC has used other ways to meet the financial needs of the projects.

'while financial needs of the South Pars gas field development phases 11 and 12 are being provided in the framework of buyback contracts, development of phase 19 is being done under a contract with Naftiran Intertrade Company (NICO),' POGC managing director said.

Iranian Bank Mellat's energy fund is currently providing financial needs for development of the South Pars gas field phases 20 and 21.

According to Vakili, due to the government and parliament emphasis on early development of the South pars gas field phases, they have paid enough attention to providing needed financial resources.

The South Pars field is a gas condensate field located in the Persian Gulf. It is the world's largest gas field and is shared by Iran and Qatar. According to the International Energy Agency, the field holds an estimated 50.97 trillion cubic meters (1800 trillion cubic feet) of in-situ gas and some 50 billion barrels of condensates.

Iran holds the world's second-largest reserves of natural gas and the third-largest reserves of oil.