Upstream Oil Currency Guarantee Fund to be Launched with 300 Million Euros Capital

According to Energy Press, Amir Moghiseh stated at the fourth meeting of the founding board of the Non-Governmental Oil Industry Guarantee Fund: The Upstream Oil Currency Guarantee Fund is designed as the industry’s main measure to improve the business environment in the field of financing upstream projects and can create a significant change in the capital market and stock market.

He added: We hope that before the end of the year, the approval and principle approval of the Non-Governmental Oil Industry Guarantee Fund will be received from the National Finance Council so that the fund can begin its operational activities in the near future.

Expanding new financing tools in upstream oil

The Director of Investment and Business of the National Iranian Oil Company stated: Exploration and production companies and investors interested in the upstream oil sector will have the opportunity to participate more widely in projects through this tool.

Moghiseh also announced other plans of the National Iranian Oil Company to develop new financing methods, adding: “Establishing the first public joint-stock company for upstream projects, issuing foreign currency bonds, and launching a fixed-income fund with the aim of public participation in oil projects are among other measures planned by the end of 1405.”

Recalling that in May this year, at the “Investment and Development in Upstream Oil and Gas,” the fund’s partnership agreement was signed by major shareholders, he said: “Since then, several meetings of the fund’s founding board have been held, the final composition and amount of shareholder contributions have been determined, and before the end of the year, we will obtain the approval and approval in principle for this fund from the National Finance Council.”

Establishing the first public joint-stock company for upstream projects

The director of investment and business at the National Iranian Oil Company, stating that the company has a set of methods for financing and the presence of the private and non-governmental sectors and small capital on its agenda, emphasized: “The most important of these measures to date has been the establishment of the Oil Industry Guarantee Fund.”

Moghiseh added: “In the next stages, the first public joint-stock company for upstream projects will be established, in which people can become shareholders in this company and oil projects with any amount of capital, and we are doing our best to provide these services to the people by the end of the spring of 1405.”