The financing framework for upstream oil and gas contracts and the first payment commitment certificate for funding upstream projects were unveiled Tuesday at the " Strategic Transformation in Iran’s Upstream Oil and Gas Sector, Unlocking Investment and Financing Opportunities in NIOC projects" event, with Oil Minister Mohsen Paknejad in attendance.

The framework, the result of months of effort, collaboration, and meetings involving representatives from the National Iranian Oil Company, the banking system, the Ministry of Economic Affairs and Finance, the Planning and Budget Organization, and exploration and production companies, was approved by the National Financing Council on Oct. 30, 2024, and issued for implementation in the banking system and other financial institutions.

Under this framework, investors approved by the National Iranian Oil Company can utilize various financing mechanisms for upstream projects in two phases: before and after initial production. The structure includes diverse instruments such as payment commitment certificates based on future production, certificates for matured or unmatured receivables, and the use of commodity deposit certificates or crude oil and gas condensate delivery warrants.

During the event, the first payment commitment certificate worth $104 million was issued and unveiled to finance development projects by Dana Energy Company in the Aban, Paydar West, and Sohrab fields.

At the "Transformation in Investment and Development in Iran’s Upstream Oil and Gas" event, the National Iranian Oil Company introduced over 200 opportunities to large, medium, and small investors under various contractual models.