Way Open For Private Sector To Invest In Oil/gas Projects

Tehran, Oct 22, IRNA - The implementation process of Note 2(G) of the national budget law will be finalized soon and investors and producers will be invited to invest, managing director of the National Iranian Gas Company (NIGC) announced. 'Implementation of Note 2(G) will help lead the economy out of recession without triggering inflation,' Hamidreza Araghi said in a meeting with members of the Society of Iranian Petroleum Industry Equipment Manufacturers (SIPIEM). Note 2(G) establishes the investment framework for the oil ministry, allowing it to invest up to $100 billion in oil and gas projects in line with Article 44 of the Constitution and help open new opportunities for the private enterprise. The budget authorizes the oil ministry to allocate $5 billion worth of contracts to the private sector, approve foreign currency loans for private investors to operate upstream oil and gas projects, invest up to $100 billion in the oil and gas industry, and supply crude oil to refineries with the 95 percent base price (FOB) of Persian Gulf. According to shana.ir, Araghi stressed that 'conditions between the private sector and investor have to be clarified,' and the NIGC plays a pivotal role in this regard. He did not elaborate. SIPIEM will also evaluate its list of contractors and recommend the top performing companies to undertake gas projects. 'NIGC is one of the leading manufacturers of equipment for the gas industry,' he said, and added that adhering to rules and regulations and adopting proper strategies will strengthen domestic producers. Producing high quality and affordable gas equipment inside the country, addressing the concerns of manufacturers by signing long-term deals and reassuring them about the purchase of their products are the priorities of the gas industry, according to Araghi. NIGC also aims to establish an internal financial system. 'We hope to see a boost in the implementation of projects, by establishing the new financial system, regulating the budgets of subsidiary companies and improving liquidity. The private sector and domestic manufacturers will help to provide equipment.'/end