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    Iran to Issue South Pars Bonds

Summary

Iran's oil ministry is preparing to issue $1.7bn bonds on March 15, of which $1.2bn are to be allocated to giant South Pars gas field's remaining phases.

by: Iran desk

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Iran to Issue South Pars Bonds

Iran's oil ministry is preparing to issue $1.7bn bonds on March 15, of which $1.2bn are to be allocated to giant South Pars gas field's remaining phases.

The bonds would be issued at theTehran stock exchange at a 21%/yr interest rate.

According to the current fiscal year budget, covering a 12-period to March 21, 2016, Iran's oil ministry was allowed to issue $2.3bn bonds inside the country.

Table: Status of South Pars (as of Jan 2016)

Phase Progress Sweet gas production capacity (mn m3/d)
Phase 1-10 100% 250
Phase 11 0% 50
Phase 12 97% 80
Phase 13 75.4% 50
Phase 14 61% 50
Phases 15,16 97.8% 50
Phases 17,18 92.2% 50
Phase 19 90% 50
Phases 20, 21 83.4% 50
Phases 22-24 79.8% 75

Source: Oil ministry 

According to the documents, phases 1-10 produced 283mn m³/d of raw gas, while phases 12, 15, 16, 17 and 18 produced 125mn m³/d together during March 2015-January 2016.

Iran also started early production from phase 19 on on March 9, where it has brought its first platform into play.

For now it is producing 14mn m³/d gas, but the final production capacity is 50mn m³/d, the state Pars Oil and Gas Company reported.

Oil minister Bijan Namdar Zanganeh said January 11 that Iran needs $20bn to develop the remaining phases of the South Pars gas field.

Iran produced 162.5bn m3 of sweet gas during the 11 months of the current fiscal year. The figure indicates a 7% growth year-to-year, the deputy head of the National Iranian Gas Company (NIGC) for operations affairs Abdolhossein Samari said on March 4.

South Pars is divided into 24 standard phases, of which phases 1-10, 12, 15 and 16 are fully operational. Phases 17 and 18 as well as 19 are operating at half capacity.

 

Iran desk