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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
Iranian companies sign memorandum on localising petrochemical equipment production
Iranian companies have signed a memorandum of understanding for the development of locally-produced petrochemical equipment worth €60mn, Iran's official energy news service Shana reported on October 22.
Local firms have become more active in bidding for projects in Iran because in the past year many foreign companies have pulled out of the country because of the reintroduction of US sanctions aimed at Tehran.
The contract was signed by Iranian Offshore Engineering and Construction Company (IOEC), Azar Ab Industries and Machine Sazi Arak in the presence of Minister of Industry, Mines and Trade Reza Rahmani.
Iran is trying to ramp up exports of petrochemicals following the major reduction in oil sales since they were specifically targeted by US sanctions in November 2018.
The move is unsurprising given the success of oil sanctions, while on June 7 Washington announced the sanction of Iran’s Persian Gulf Petrochemical Industries Co. (PGPIC) for allegedly providing indirect support to the Islamic Revolutionary Guard Corps (IRGC).
Iranian government sources were quoted by newswires as saying that Tehran has been selling higher volumes of cut price petchem products to Brazil, China, India and others as it seeks to make up for lost oil revenues.
Sales of certain products have been able to continue largely because of ambiguity surrounding urea, ammonia and methanol, but the move to sanction PGPIC will act as a warning to those collaborating with Iranian petchem firms. The company and its 39 subsidiaries and overseas sellers have now been branded specially designated nationals (SDNs), preventing US companies of citizens from having dealings with them. 14 of these subsidiaries are petrochemical production project companies.
The Treasury said it had also sanctioned the PGPIC holding group’s network of 39 subsidiary petrochemical companies and foreign-based sales agents. PGPIC and its units have 40% of Iran’s petrochemical production capacity and account for 50% of Iran’s petrochemical exports, it said.
Member of the Iranian Oil, Gas and Petrochemical Products Exporters’ Union, Ahmad Sarami, this week said that Tehran has received $11bn from petchem exports during the previous Iranian calendar year, which ended on March 20. Meanwhile, state energy sector media outlet Shana reported on June 11 that the first phase development of the Hengam petrochemical plant was 73% complete. It cited the National Petrochemical Co. (NPC) as saying that the
43​ IRAN Country Report​ November 2019 www.intellinews.com