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Tehran, Feb. 16 (SENA) - Ministry of Petroleum pointing out that a 30-billion dollar investment has to be made in petrochemical industry in five years, said: In total there is the opportunity of a 40-billion dollar investment in this industry.

Bijan Zanganeh in the conference of development of financial system stated that the business cycle needs to be activated in the country and proceeded that in the Oil industry 25-billion dollar investment needs to be made annually. Otherwise, we will face problems in other sectors.

He expressed that there are several methods for the survival of financial corporations, including National Development Fund, foreign financing, banking resources, money market, corporate bond, selling shares of corporations, etc., which we have been using and will use. Ministry of Petroleum emphasized that nevertheless, we need to utilize other means.

According to Zanganeh the capital needed for completing unfinished petrochemical projects exceeds 30 billon dollars and investors are capable of providing that. However, if we could finance through public offering, the investment opportunity and development of the Oil industry would improve.

Indicating that there are 12-billion dollar petrochemical projects confirmed but not started yet, he continued: There are downstream and midstream projects that in total create a 40-billion investment opportunity in petrochemical industry.

Zanganeh added that refineries and petro-refineries are also planned to be constructed which have the potential of 20-billion dollar investment and it will be through the private and semi-private sector.

Asserting that most investments in the gas industry is governmental, he added that private sector can contribute to the field of gas storage. We don’t expect Iranian companies to accept the exploration risk in E&P projects; however, there is a high potential in the storage and development of oil and gas.

Ministry of Petroleum stated that we need advanced technology which due to sanctions our access to it has become limited, however, by equipping our universities we try to become self-sufficient.

According to Zanganeh, involvement of E&P corporations entails two risks which includes the risk of execution and time management and the risk of reservoir. Because dividends depend on achieving the determined goals in the contract and are not paid unless the production has started.

Ministry of Petroleum emphasized that financing should be done in capital market in a clear way. Since reservoir and oil processing facilities are not owned by the contractor to ensure the investment, the classification of companies needs to be determined.

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