Iran to Borrow €5bn from Italy
Tehran and Rome signed a finance contract worth €5bn ($6bn), the Italian economics ministry announced January 11. The master credit agreement was between the Italian financial institution Invitalia Global Investment and a number of Iranian finance institutions, the report said.
“The agreement provides general terms and conditions which will govern each future financing agreement (facility agreement) concluded between Invitalia Global Investment and the Iranian banks, for an aggregate amount not exceeding €5bn, and covered by a sovereign guarantee issued by the Iranian government.”
It will fund projects and partnerships in Iran, jointly implemented by Italian and Iranian companies, in areas of mutual interest such as: infrastructure and construction; oil, gas and power generation; chemical, petrochemical and metallurgy, the report said.
Upstream oil and gas projects
The report didn’t specify the oil and gas projects, but Italian Eni signed two memoranda on understanding (MoU) with Iran to study the Kish gas field and the third phase of Darkhovin oil field. It also proposed development of North Pars gas field.
Last year Eni also proposed a $4bn investment proposal to develop South Pars phase 11, but Iran signed agreement on that with Total, CNPC and the local company Petropars in July 2017.
Italian Saipem signed a MoU with Iran to study Toos gas field in April 2017, after sealing several other deals on gas pipeline deals, including Iran gas trunk-lines (Igat) 9 and 11 as well as upgrading Pars Shiraz and Tabriz refineries in January last year. Igat 9 is projected to transit 110mn m³/d gas from South Pars in the Persian Gulf to the country’s northwest, of which some can flow to the European Union through Turkey. Igat 11, with the same capacity and source, is projected to transit gas to northeast regions.
Italian engineering firm Maire Tecnimont (MT) signed a contract with Iran for the provision of engineering, utilities and offsites services (U&O) at the $350mn Ibn Sina plant, in the Hamadan province in the western regions in last October. Tecnimont has also signed a contract for a urea production licence for Lavan chemical company in Assaluyeh.
The company also signed a MoU with the Persian Gulf Petrochemical Industries Company (PGPIC) three years ago with worth €1bn ($1.18bn), but has not feminized that or MoU on Sadaf petrochemical plant yet.