Iran to offer crude oil parallel forward bonds on Energy Exchange

Oil&Gas Materials 7 February 2016 18:13 (UTC +04:00)

Baku, Azerbaijan, Feb. 7

By Fatih Karimov- Trend:

Iran to offer oil parallel forward bonds' contracts at Energy Exchange, Ali Hosseini, the managing director of the Iran Energy Exchange (IRENEX) said.

The bonds will be issued for financing Azar oil field development project, Hosseini said, Iran's IRINN TV reported Feb. 7.

Following the successful offer of fuel oil parallel forward bonds, the Light oil parallel forward bonds trade will be carried out at Energy Bourse in the near future, Hosseini said.

The value of the bonds will be about two trillion rials(each USD makes 30180 rials), the official said, adding the interest rate of the bonds will be 25-28 percent.

Azar oil field, shared between Iran and Iraq was discovered by Statoil and Lukoil in 2006, then Gazprom signed contract with Iran in 2009 to develop the project, but after a two-year delay, the Russian company withdrew from the project.

Earlier, Iranian media outlets quoted Hosseini as saying the Exchange has the potential to play a pivotal role in determining oil price in the region. He explained that since Iran is an oil-rich country, the country's energy bourse has the potential to increase supplies from current 3,000 b/d to 10,000 b/d.

Iran aims to prepare the ground for the presence of foreign buyers of crude oil in the energy exchange and diversify the products supplied to buyers including gas condensates, Hosseini noted.

The proposal to trade oil at bourse was first raised in 2000.