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Iran allots $1.5 bln for development of Persian Gulf oil fields

21 November 2012 13:55 (UTC+04:00)
Iran allots $1.5 bln for development of Persian Gulf oil fields

The National Development Fund (NDF) of Iran has allocated $1.5 billion for developing oilfields in the Persian Gulf, IRNA news agency quoted Iranian Offshore Oil Company's managing director Mahmoud Zirakchianzadeh as saying.

The funds will be spent on developing a number of fields, such as Esfandyar, he added.

According to the Iranian laws, 37.5 per cent of oil revenues is directed to the development of oil and gas fields and is deposited into the NDF, while 62.5 per cent is spent as the current budgetary expenses.

On October 14, Zirakchianzadeh said that Iran has prepared new oil development plans at an estimated cost of $14 billion, which will be spent on tapping the Persian Gulf oilfields.

"As much as $20 billion worth of deals have been signed within the past two years," he said. "Some $14 billion worth of new deals have been prepared and will be offered to contractors."

The deals are related to Farzad A & B, Soroush, Esfandyar, Tossan, and Alfa fields, Zirakchianzadeh noted.

Iran has also reportedly focused on boosting gas production capacity at its joint oilfields with Qatar and Saudi Arabia.

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