Iran to attract domestic investment in oil industry by pre-selling crude oil to people
The Iranian government plans to pre-sell crude oil to the country's people based on forward contract with maturity of four years, as a tool to attract domestic investment in the oil industry, Oil Minister Rostam Qasemi announced on Saturday, Mehr news agency reported.
Qasemi expressed the hope that the plan would go into effect in the next Iranian month of Azar which begins on November 21, IRNA news agency reported.
According to the plan, the four-year long forward contract bills would be sold by operating banks to the people, Qasemi said, adding that each bill has the minimum equivalent worth of 10 barrels of crude oil on the price of the trade date.
The holders of the bills can sell it to the banks after four years, Qasemi explained.
Iran seeks to attract investors to complete its economic projects - so far it has attracted $3.7 billion in foreign investment during the last solar year, which ended on March 20, 2011, with 24 percent growth.
Iran has the world's second largest gas reserves and places third in oil reserves. The country currently faces US sanctions over its nuclear program.
U.S. Congress approved financial sanctions against Iran in 2010, imposing strict conditions for foreign investors and financial firms and preventing them from investing more than $20 million in Iran's oil and gas industries.