Iran to sell bonds for South Pars project

Tehran, June 14, 2011

Iran will issue 2.7 billion euros ($3.9 billion) of bonds to help finance the development of its South Pars gas field in the Gulf, Oil Ministry news website Shana reported on Tuesday.

"These bonds will be offered from next week with the participation of three domestic banks and will be completely sold by next month," Ahmad Qalebani, head of the state-owned National Iranian Oil Company, was quoted as saying.

"In selling this series of foreign exchange bonds, the possibility of offering them to foreign markets exists and some marketing has also been done for that," he added.

International sanctions aimed at persuading Iran to curb its nuclear programme has forced western oil companies to pull out of the giant South Pars field that the Islamic Republic shares with Qatar and pushed Tehran to seek other sources of finance.

Qalebani said 8.7 billion euros of bonds would be issued this year, much of which would be used to fund projects in South Pars. - Reuters

Tags: Iran | South Pars | Gas fields |