CEO of Iran’s state oil company the NIOC says the government will soon begin to sell oil bonds to secure the investment needed in large-scale oil and gas projects in the country.
Mohsen Khojasteh Mehr said on Wednesday that oil bonds planned to be unveiled by the National Iranian Oil Company in the near future will be denominated in foreign currencies and will be eligible for direct exchange with crude oil shipments.
“The NIOC can even store crude oil at aboveground tanks for delivery to the bond holders as soon as a tradable shipment is ready,” Khojasteh Mehr told reporters, adding that the bonds will have no maturity date.
He described the oil bond issuance plan as a “national scheme” that will enable the NIOC to secure the cash flow needed in its upstream projects.
The official, who also serves as a deputy oil minister, said Iran’s High Council on Money and Credit has authorized the oil bond issuance scheme by the NIOC.