South Pars bonds with 20 percent profit on sale

Oil&Gas Materials 29 January 2012 11:21 (UTC +04:00)

Azerbaijan, Baku, Jan. 29 / Trend F.Milad/

Nine trillion rials (around $735 million) in bonds will be issued as of February 4 at the Tejarat Bank's branches nationwide to finance the South Pars gas field's development projects, the National Iranian Oil Company (NIOC) managing director announced.

Ahmad Qalebani added that the bonds will be offered with 20 percent annual profit for a period of four years to attract the public participation, the Shana news agency reported.

On November 26, 2011, $500 million in bonds was offered with 17 percent profit, but the public did not welcome the offer.

Five billion dollars in bonds will be issued in the current Iranian calendar year (to end March 20, 2012) to speed up the implementation of South Pars gas field projects, the NIOC head had previously said.

According to Oil Minister Rostam Qasemi, Iran will also issue $15 billion in sukuk (Islamic Sharia-based) bonds the current year to be invested in the domestic oil industry.

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.