Report: National Iranian Gas Company goes bankrupt

Oil&Gas Materials 16 November 2013 14:33 (UTC +04:00)

Baku, Azerbaijan, Nov. 16

By Fatih Karimov - Trend: The National Iranian Gas Company has gone bankrupt, the Mehr News Agency reported on November 16.

The NIGC has over 100 trillion rials (about $4 billion based on the U.S. official exchange rate of 24,900 rials) in debt, the report added.

The NIGC managing director Hamidreza Araqi has affirmed the company's bankruptcy, saying that the improper implementation of the subsidy reform plan has grappled energy-related organizations of the country with many problems.

Iran's next year budget bill has envisioned new mechanisms for resolving financial problems of the company. The next Iranian solar year will start on March 21, 2014.

Araqi said that the country's gas industry is facing with severe budget deficit.

On September 6, Araqi was appointed to the post of managing director of the National Iranian Gas Company. Araqi replaced Javad Oji.

Iran, which sits on the world's second largest natural gas reserves after Russia, has been trying to enhance its gas production by increasing foreign and domestic investment, especially in its South Pars gas field.

According to Iran's Oil Ministry, the country's proved natural gas reserves are about 1,045.7 trillion cubic feet (29.61 trillion cubic meters) or about 15.8 percent of world's total reserves.