The financing framework for upstream oil and gas contracts and the first payment commitment certificate in this sector were unveiled in a ceremony attended by Iran’s Oil Minister at the event titled "Transformation in Upstream Oil and Gas Investment and Development", which was took place today in Tehran.
The framework was approved by the National Financing Council on Oct. 30, 2024, and issued for implementation in the banking system and other financial institutions.
Under this framework, investors approved by the National Iranian Oil Company can utilize various financing mechanisms for upstream projects in two phases: before and after initial production.
The structure includes diverse instruments such as payment commitment certificates based on future production, certificates for matured or un-matured receivables, and the use of commodity deposit certificates or crude oil and gas condensate delivery warrants.
During the event, the first payment commitment certificate worth $104 million was issued and unveiled to finance development projects by Dana Energy Company in the Aban, Paydar West, and Sohrab fields.