News ID: 212753
Published: 0156 GMT April 06, 2018

No banking problem for Zarubezhneft investment in Iran

No banking problem for Zarubezhneft investment in Iran

Russia's Zarubezhneft will face no banking problem in transferring money into Iran for investment in oil sector, said the deputy head of the National Iranian Oil Company (NIOC) for development and engineering affairs.

Gholamreza Manouchehri further pointed out that banks in Russia, which have relations with Iran and the Russian oil firm, can transfer the money, reported Mehr News Agency.

The NIOC signed a deal with Zarubezhneft to develop Aban and Paydar-e Gharb oilfields in the west of Iran — both shared with Iraq.

The 10-year agreement is intended to boost the production of the fields to 48,000 barrels per day from the current level of 36,000.

Zarubezhneft has an 80-percent stake in the deal and its Iranian partner, Dana Energy, the remaining 20 percent.

The cost of developing the fields is estimated at $674 million, with an additional $68 million in indirect costs.

The fields are expected to produce 67 million barrels of oil during the ten years.

Manouchehri said that the Russian company can even use European banks to transfer capital to Iran for developing the field.

However, he added that the process details must be discussed, but in general the company would not face serious challenges on banking issues.

Turning to the 20-percent investment share of the Iranian side for the project, Manouchehri said that the finance can be provided through loan from the National Development Fund of Iran or Iranian banks.

He underlined that the Oil Ministry's assets would not be allocated for financing the project.

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