Azerbaijan, Baku, Aug. 15 / Trend /
Despite international sanctions, the foreign investors are eager to increase investments in upstream and downstream of South Pars, IRNA reported quoting Managing Director of Pars Special Economic Energy Zone (PSEEZ) Piruz Mousavi as saying.
"It's our priority to create good conditions for foreign investments in South Pars, recently South Korean company started to construct steel structures in two Phases of South Pars," he said.
It's expected the foreign investment will increase in construction of hotels, commercial complexes, small industries and tourism in Pars Special Economic Energy Zone (PSEEZ).
The company investment is Phase one is estimated at $9 million which will be invested by foreign investor through private Iranian company, a total of $5.5 million cash and $3.5 million machinery and equipment.
Iran 's Oil Ministry predicted that the development of oil and gas industry in next sixteen years requires $500 billion investments.
Iran has OPEC's second-highest oil output and ranks the second in the world in terms of natural gas reserves after Russia. However, the country faces sanctions due to nuclear activities.
The U.S. Congress approved financial sanction against Iran in 2010, which imposes strict conditions for foreign investors and financial firms and prevents them to invest more than $20 million in Iran oil and gas industries.
Foreign companies refused to sign agreement to develop Iran's oil and gas fields due to international sanctions therefore major development projects implemented by Iran Revolutionary Guard Corps.