The Non-Governmental Oil Industry Guarantee Fund will be established with the preliminary approval of the National Financial Council. This fund is designed to address financing issues and provide the necessary guarantees for Iranian companies in the money and capital markets.
Necessity of Establishing the Guarantee Fund
In the twenty-fifth meeting of the National Financial Council, held with the presence of Hamid Bourd, CEO of the National Iranian Oil Company, the proposal for establishing this fund was reviewed. Existing limitations in providing guarantees and collateral requested by financial institutions are considered one of the main obstacles to financing development projects in the oil industry. This fund is designed with an initial investment of 300 million euros.
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Details of the Fund Structure
The Non-Governmental Oil Industry Guarantee Fund will be established with the cooperation of 20 shareholders, including five commercial banks, ten Iranian 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. This diverse composition will help increase the fund's capacity to finance upstream projects.
The initial steps for establishing this fund, including the formation of the founding assembly on February 17, 2026, and obtaining preliminary approval from the National Financial Council, indicate attention to the financial needs of the oil and gas industry. This fund, as a specialized entity in financing upstream projects, will assist in providing the necessary guarantees and collateral.
Fund Performance and Objectives
The main goal of the Guarantee Fund is to facilitate the provision of necessary guarantees and collateral for Iranian companies. Additionally, this fund will assist in financing upstream oil and gas projects. The anticipated activities for this fund include issuing various types of guarantees, including payment commitment guarantees, participation in tenders and auctions, performance guarantees, advance payments, and other guarantee instruments.
Beneficiaries of this fund will include investing companies, contractors, and operators active in the oil, gas, and petrochemical sectors. Moreover, banks and financial institutions can benefit from the guarantee capacities of this fund as collateral-eligible entities.
The development of the role of Iranian exploration and production companies in recent years and the delegation of more responsibilities to these companies have made access to financial resources and the ability to provide valid guarantees one of the main requirements for increasing investment capacity in the oil industry. This fund, as an institutional response to existing needs, can serve as a complementary link in the financing chain of upstream projects.
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