A non-governmental oil industry guarantee fund will be established with a capital of 300 million euros to serve as a new specialized entity that facilitates the financing of upstream oil and gas industry projects. This fund was reviewed and approved in principle at the twenty-fifth meeting of the National Financing Council, attended by Hamid Bord, CEO of the National Iranian Oil Company.
Purpose and Necessity of Establishing the Fund
The establishment of this fund is one of the initiatives of the National Iranian Oil Company to address existing problems in financing upstream projects. Studies show that the limitations of exploration and production companies and domestic contractors in providing necessary guarantees are one of the main obstacles to mobilizing financial resources for the implementation of development projects in the oil industry. For this purpose, the non-governmental oil industry guarantee fund has been designed to facilitate the provision of collateral and guarantees required by Iranian companies.
Shareholder Composition and Fund Structure
The non-governmental oil industry guarantee fund will be established with the participation of 20 shareholders, including 5 commercial banks, 10 exploration and production companies, the National Development Fund, the National Iranian Oil Company, the Iran Energy Exchange, the Oil Industry Research and Technology Fund, and the Kish Free Zone Organization. Banks and exploration and production companies will provide the majority of the fund's capital. This diverse and unprecedented combination of shareholders can enhance the credibility and efficiency of this fund.
The presence of the CEO of the National Iranian Oil Company at this meeting indicates the strategic importance of creating new guarantee and financing infrastructures for the development of oil and gas fields and strengthening the capacity of Iranian companies in implementing upstream projects. Given the growing role of exploration and production companies in recent years, access to credible financial resources and providing appropriate guarantees to banks has become one of the essential needs for increasing investment in this industry.
Scope of Activities and Stakeholders of the Fund
The anticipated scope of activities for the non-governmental oil industry guarantee fund is very broad and includes the issuance of various guarantees required by the oil and gas industry. These guarantees will prioritize the upstream sector, including payment commitments, participation in tenders and auctions, performance guarantees, and guarantees for technological activities.
The stakeholders of this fund will include investing companies, contractors, and operators active in the oil, gas, and petrochemical sectors. Banks and the capital market can also benefit from the guarantees issued by the fund as collateralizable entities.
The establishment of this fund as an independent entity can help increase transparency and efficiency in financing oil and gas projects and act as a complementary link in the financial supply chain. The formation of the founding assembly of the non-governmental oil industry guarantee fund on February 18, 2026, and the issuance of the principle approval in the National Financing Council are significant steps towards launching this specialized entity.
