MEOG: Iran says oil funds are in place

In MEOG, we looked at Iran’s announcement that a large portion of its planned investment to develop the country’s oil sector is in place.

Speaking on national TV, Oil Minister Javad Owji reiterated that $160bn of investment will be required over the next eight years to enable Iran to complete oil development projects. “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.

He added that the government has attracted more than $80bn, leaving less than 50% to be sourced, highlighting the recent $40bn memorandum of understanding (MoU) signed with Russian gas monopoly Gazprom. However, the official Islamic Republic News Agency (IRNA) reported just a week or so ago that $50bn had been secured, including the Gazprom deal.

In June, the National Iranian Oil Co. (NIOC) signed a $7bn investment deal with local companies, banks and the National Development Fund of Iran (NDFI) to raise output at Azadegan, Iran’s largest oilfield, to 570,000 barrels per day from the current combined 215,000 bpd across the north and south development projects.

Azadegan is located along the border with Iraq, and Owji noted that such shared assets are Iran’s top priority.