Iran's NISOC to invest $5 billion in oil projects

Business Materials 6 March 2013 10:41 (UTC +04:00)

Azerbaijan, Baku, Mar.4/ Trend F.Milad

The National Iranian South Oil Company (NISOC) plans to invest some 5 billion dollars in its incomplete projects in the next Iranian calendar year, which begins March 21.

Once all the projects come on stream, the company's oil production capacity would reach 3 million barrels per day.

NISOC sold 7.5 trillion rials (some 611 million U.S. dollars) worth of bonds in December.

According to the national budget law, the Oil Ministry's subsidiaries are obliged to sell bonds totally to the ceiling of $5 billion in the current Iranian calendar year, which ends on March 20, 2013.

In July, 2012, an official with 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.

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

Qasemi also announced in February that the country's recoverable oil reserves are currently about 157 billion barrels.

He said the reserves have been increased to 157 billion barrels from 154 billion barrels in the previous year, adding that there is no exact figure about the country's natural gas reserves.

According to Qasemi, the country's crude oil output is projected to rise to 5.2 mbpd by the end of the Fifth Five-Year Development Plan (2015).

On October 14, Iranian Offshore Oil Company's Managing Director Mahmoud Zirakchianzadeh said Iran has prepared oil development plans, with an estimated cost of $14 billion, related to oilfields located in the Persian Gulf.

Iran has the world's fourth-largest reserves of recoverable oil, after Venezuela, Saudi Arabia, and Canada.