Iran sells $1.1 billion in bonds for South Pars projects

TEHRAN,Feb.13(MNA)--Iran has sold up to 14 trillion rials (some $1.1 billion) in bonds during past week to finance the South Pars gas field’s development plans, National Iranian Oil Company’s managing director said. Five billion dollars in bonds will be issued in the current Iranian calendar year (to end March 19, 2012) to speed up the implementation of South Pars gas field projects, the NIOC head, Ahmad Qalebani, added. On November 26, 2011, $500 million in bonds was offered with a 17 percent yield, but there was little uptake. According to Iranian Oil Minister Rostam Qasemi, Iran will also issue $15 billion in sukuk (Islamic Sharia-based) bonds in the current year to be invested in the domestic oil industry. Iran’s national budget for the next calendar year has envisaged issuing €12.5 billion in bonds for financing domestic oil projects. The South Pars gas field is shared by Iran and Qatar. The Iranian share, which is divided into 29 phases, has about 14 trillion cubic meters of gas, or about eight percent of the total world reserves, and more than 18 billion barrels of liquefied natural gas resources.