Iran plans to issue $10 billion worth of oil bonds in next calendar year

Business Materials 2 March 2013 12:06 (UTC +04:00)

Azerbaijan, Baku, Mar.2 / Trend F.Mehdi/

The Iranian Oil Ministry plans to issue $10 billion worth of bonds in the next Iranian calendar year, which begins on March 21, the Fars News Agency reported.

The plan is in accordance with the next year's budget bill, which has been recently submitted to the Iranian parliament.

On Wednesday, the Iranian administration submitted the 7,300 trillion rials (about $595.4 billion) budget bill for the next Iranian calendar year.

The proposed budget has increased by 22 percent compared to the year before.

In July 2012, an official at the Iranian Oil Ministry said the Central Bank of Iran has opened a $10 billion line of credit for a number of domestic oil projects in the upstream sector.

"Benefiting from 18 percent of assets of the National Development Fund; issuing $10 billion in foreign currency bonds; issuing 15 trillion rials in bonds; and selling $10 billion worth of shares and properties of the Oil Ministry are among other sources of finance for the oil projects," Mohsen Khojasteh-Mehr told the Shana News Agency.

Oil Minister Rostam Qasemi said in April that at least $30 billion will be invested in the domestic oil industry this year.

He added that a major portion of the sum will be allocated to the South Pars gas field projects.

The South Pars gas field is shared by Iran and Qatar. The Iranian share, which is divided into 29 phases, has about 14 trillion cubic meters of gas, or about eight percent of the total world reserves, and more than 18 billion barrels of liquefied natural gas resources.

Qasemi also said that the global economic sanctions against the Islamic Republic would not hinder the country's oil industry development.

The oil ministry is committed to accelerating the implementation of its development plans, financed through the financial system and through government bonds, he said.

Iran sits on the world's second largest natural gas reserves after Russia.