Over $22b allocated for South Pars development in current year

TEHRAN,April 9(MNA) – The Iranian Oil Ministry has approved a $22.8-billion budget for developing different phases of the South Pars gas field in the current calendar year, which began on March 20, Pana news agency reported. The developments plans will be financed by the National Iranian Oil Company, the National Development Fund, and oil incomes, according to the report. President Mahmoud Ahmadinejad said on Saturday that the National Development Fund assets would hit $55 billion in the current year. According to the Fifth Five-Year Development Plan (2010-2015), the National Development Fund was established to channel oil and gas revenues to productive investment for future generations. Deputy Oil Minister Mohsen Khojasteh-Mehr said in October 2011 that development of the South Pars gas field is a priority, and funds will be channeled there for as long as necessary. Five billion dollars in bonds had been planned to be issued in the past calendar year to speed up the implementation of South Pars gas field projects, the NIOC managing director Ahmad Qalebani told Shana news agency. Issuing some $15 billion in sukuk bonds was also planned to be invested in the oil industry, Oil Minister Rostam Qasemi said last year. In 2009, Iran said development of the remaining phases of South Pars required investment of $40 billion over 10 years. 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.