More Investment to be Allocated to Iran's South Pars

Iran plans to invest around US$13 billion to develop the remaining phases of the giant South Pars Gas Field, said a senior Iranian oil official. "US$13 billion would be invested in South Pars projects by issuing bonds and using other resources in the current year 1389 (March 2010-2011)," Managing Director of Pars Oil and Gas Company (POGC) Ali Vakili said on Monday (6 September 2010). He further pointed out that the Iranian Ministry of Petroleum would also use oil revenues and foreign investments to finance the giant gas filed which is jointly owned by Iran and Qatar.

The Iranian share of the field has reserves of about 14 Tcm of gas, which accounts for about 8% of the total world gas reserves. Vakili went on to say that the Ministry has received the required permit from the Central Bank of Iran (CBI) to issue bonds worth €3 billion as well as around US$3 billion worth of Rial bonds to finance the project.

Last month, Iranian Minister of Petroleum Masoud Mir-Kazemi said the annual revenue of the field will soar to US$100 billion, raising Iran's gas output to 1.1 Bcm/d once all phases of South Pars become operational. Stressing the need for attracting foreign investment in the country's oil industry, Mir-Kazemi had said the Ministry's resources alone cannot meet the country's developmental needs, while adding that Iranian and foreign companies could finance energy projects or help acquire the required sources for the oil industry's undertakings. - Press TV