NICO completes Petropars buy-out

17 January 2003
Jersey-registered Naftiran Intertrade Company (NICO), a subsidiary of National Iranian Oil Company (NIOC), has completed the full acquisition of the local Petropars. NICO bought the remaining 40 per cent from the pension funds of NIOC and the local Industrial Development & Renovation Organisation (IDRO).

Petropars says the deal will strengthen its financial capabilities in view of massive capital expenditure on large-scale projects such as the buy-back development of phases 6-8 on the South Pars gas development scheme. 'We need huge amounts of capital for buy-back and other projects,' Akbar Torkan, chairman and president of Petropars, told MEED on 14 January. 'Capex [capital expenditure] for phases 6-8 alone will be about $2,000 million. NICO has the financial capacity to provide us with enough capital in the future.'

Additional financing of about $800 million will be required for phases 4-5, in which Petropars holds a 40 per cent stake, with operator Eniof Italy holding the remainder. NICO has already provided a significant share of funding to phase 1, the single-phase development carried out by Petropars on its own.

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