NIOC’s Annual Investment Requirement Estimated At $24-30Bn
National Iranian Oil Company (NIOC) Managing Director Seifollah Jashnsaz told reporters in Tehran on 21 February that the company would need to invest $24-30bn each year to achieve its 2010-30 development plan. He said NIOC reinvests 13% of its yearly income in the petroleum industry while another 17% is reserved for tax payment, but less than 50% of the necessary funding is available for the company’s domestic development program. Mr Jashnsaz said that among NIOC’s priorities was the need to improve the country’s rate of recovery of oil and gas reserves, which has slipped to around 27% during the last five years, along with the development of 12 fields which extend into neighboring countries. On 24 February Mr Jashnsaz said that Iran’s Finance Ministry and Central Bank would open “in a matter of days” the first of a number of planned $1bn bond issues to fund further development of South Pars gas field.
Copyright MEES 2010.
