BAKU, Azerbaijan, Sept. 27
By Elnur Baghishov – Trend:
Iran sold crude oil securities under the "Standard Parallel Salaf" contracts for the first time in the current Iranian year (March 21, 2021 through March 20, 2022), the CEO of Iranian Energy Exchange (IRENEX), Ali Naghavi told Trend.
'Standard Parallel Salaf' is an Islamic contract similar to futures, with the difference being that the contract’s total price must be paid in advance.
On September 21, 2021, 5.92 million securities for light crude oil worth 115 trillion rials (about $2.74 billion) were sold at the IRENEX, according to Naghavi.
Naghavi added that after the sale, 21 percent of the total earnings is paid to investors in cash. These investors are mainly financial institutions and banks.
The CEO emphasized that these securities can be sold by the government, taking into account Iran's annual budget.
“The securities on the sale of crude oil under the Standard Parallel Salaf contracts are in fact a financial guarantee. So, 14.5 percent of the Iranian government's revenues from the sale of crude oil belongs to the National Iranian Oil Company (NIOC), and 85.5 percent to the government itself,” he said.
Naghavi noted that although the Iranian government's legal share of crude oil is calculated, it is impossible to say how many barrels it is, due to a number of additional costs.
Reportedly, the Iranian government is issuing securities on the sale of crude oil under Standard Parallel Salaf contracts. These securities are traded at the Iranian Energy Exchange. Payments for the securities sold on September 21, 2021 are expected to be made next Iranian year (March 21, 2022 through March 20, 2023).
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