Ali Kardor

Development projects to continue despite of $18 p/b oil


TEHRAN, March 1 (Shana) – Deputy managing director for investment and finance in the National Iranian Oil Company said that despite of oil prices as low as 18 dollars per barrel, the company will maintain development projects of the oil industry.

Speaking at a seminar on financing of energy projects on Tuesday, Ali Kardor referred to NIOC’s plans to attract 100 billion dollars in investment for oil industry’s upstream projects during The Sixth Five-Year Economic Development Plan (2016-2021).

“Some 14 billion dollars will be provided from National Development Fund, 10 billion dollars from EPCF contracts, eight billion dollars from the capital market, 12 billion dollars by (banking) facilities, 25 billion dollars under Iran Petroleum Contracts (IPC), and 31 billion dollars from the NIOC resources,” he added.

“So far, structure finance models were used and we hope to move toward projects finance ones,” he said.

Kardor added that EPC, EPDF, EPCF, government bonds, ECA, and IPC are the best available means for financing of the upstream projects.

Under Iran’s new petroleum contract models, he added, foreign investors are required to introduce a domestic partner.