Page 35 - IRANRptJun19

Market cap: Tehran Stock Exchange / 100.66 102.15 105.98 (TSE) (USD bn)
PE ratio: TSE 11.04 6.76 6.49 7.01 Source: CEIC
8.5 Fixed income
8.5.1 Fixed income - bond news
National Iranian Oil to issue IRR 20bn of fixed rate bonds in mid-March
Iran badly needs foreign investment to boost output from its oil and gas reserves because much of its hydrocarbon production has been restricted or crippled by years of Western sanctions.
A manager at National Iranian Oil Co (NIOC) said on March 12 there were 200 undeveloped oil and gas fields in Iran. “The recovery rate of Iranian fields is 10% lower than the average rate of recovery in the world,” Karim Zobeidi, NIOC’s deputy for planning, was quoted as saying by Shana.
The chief executive of NIOC, Masoud Karbasian, was cited as saying at the same time by the news agency that the company would issue 20 billion Iranian rial ($476,000 or $154,000 at the free market exchange rate) of fixed-rate (Manfa’at) bonds in mid-March.
The bonds would help finance the development of NIOC’s oil and gas projects, Karbasian said. They were to be sold on the Fara Bourse, an over-the-counter market for securities in Tehran.
9.0 Industry & Sectors 9.1 Sector news
9.1.1 Oil & gas sector news
Iran’s oil storage on land and at sea is on the rise in the face of the US effort to drive Iranian crude exports to zero.
Storage options are filling up as Tehran bids to keep its ageing fields operational and crude flowing, data and industry sources told Reuters on May 23. Iran faces the challenge of parking unsold stocks of oil until buyers, possibly on the grey market, can be found.
If Iran cannot keep its oil flowing, disruption could damage its future activities given the high costs and complexities of restarting production.
Data from Kayrros, a company which tracks oil flows, reportedly showed onshore storage in Iran was 46.1mn barrels, from a total capacity of 73mn barrels, the highest level recorded since mid January.
Reuters also cited data based on AIS tracking by shipping intelligence platform MarineTraffic. It showed 16 Iranian tankers, holding some 20mn barrels, appeared to have been deployed as floating storage. They had been stationary for between two to four weeks. Ten of those tankers with nearly 11mn barrels
35 IRAN Country Report June 2019
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