Iran’s oil minister his country’s petrochemicals industry needs $30 billion investments to complete projects and must raise this money “from small domestic investors”.
He did not offer details of how the government plans to raise billions of dollars from small investors in a country in the grips of deep economic recesion.
Foreign investment in Iran has dried up after the United States reimposed sanction on the country in 2018. Oil exports have decreased by almost 90 percent, leaving no capital to invest in oil and petrochemical industries.
Speaking at an oil industry conference in Tehran, Minister of Petroleum Bijan Zanganeh said that $10-12 billion dollars’ worth of projects have been finalized but others need planning and resources, Fars news agency reported.
He also painted a disparaging picture of investments in the oil industry, saying the sector needs annual infusions of $25 billion to ensure its productivity.
Years of international and U.S. sanctions have prevented Iran to access foreign investments and technology needed to reinvigorate in its oil industry. Zanganeh said that without investments the whole chain of production “will face difficulties”.
The oil minister announced that issuing bonds, borrowing from domestic banks and using Iran’s foreign currency reserves are options to finance the revitalization of the oil and petrochemical sectors.
Iran’s oil industry is controlled by the government and most of the petrochemicals companies are either directly or indirectly controlled by government state entities and the people considered regime insiders.