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Head of Iran’s Planning and Budget Organization (PBO) Masoud Mirkazemi said a recently formed consortium of Iranian banks and companies is going to invest $27 billion in the country’s oil and gas sector, IRNA reported.
“Recently, good cooperation has been established between the Planning and Budget Organization and the Oil Ministry, and a consortium of banks, domestic investment companies, and other contracting firms have been formed, which has resulted in signing a memorandum of understanding and a contract; this consortium is going to invest 27 billion dollars in oil and gas projects,” Mirkazemi said on Sunday.
The official noted that investment in the mentioned sectors is targeted to be increased to $80 billion, adding that “Investing in oil and gas projects is quick-yielding and its capital returns in less than a year.”
Back in August, Mirkazemi had announced signing a $7 billion contract for the development of the joint Azadegan oil field and a $19 billion MOU for the construction of two petrochemical plants.
“We are also preparing another $10 billion worth of projects to be awarded, so it is necessary to use different methods and initiatives to attract the necessary resources,” Mirkazemi had said.
Iranian Oil Minister Javad Oji also said in September 2021 that his ministry was making necessary arrangements and planning for attracting $125 billion of foreign and domestic investment in the country’s oil and gas industry within the next four to eight years.
Later in August 2022, Oji reiterated that the oil ministry was seriously following the plans for funding the oil industry’s development projects.
Speaking on national TV, the minister noted that recent studies show that over $160 billion of investment is required to complete the country’s oil industry development projects over the next eight years.
“Planning has been done to provide this figure, and considering the current progress [in our plans] there will be no problem in this regard,” he said.
The official noted that the current government has so far attracted over $80 billion for the country’s oil and gas projects and an agreement worth $40 billion has also been signed with Russia’s Gazprom.
Our priority is developing joint oil and gas fields, he said, adding: “In the downstream sector, we reached an agreement with Gazprom to build gas transmission and export pipelines to countries such as Oman and Pakistan.”
“We have also signed 28 contracts with a total value of over one billion dollars for collecting flare gas, most of which have been signed with private companies that will use the collected gas as payment,” Oji added.
