Iran will use up to $4.8 billion from its sovereign wealth fund to develop its oil and gas fields next fiscal year under a pariliamentary decision made on Tuesday, Reuters reports.
The money will come from the National Development Fund and the government’s budget and could be used to modernise the country’s ageing oil fields and deterriorating infrastructure.
“Members of parliament gave permission to the National Development Fund to pay $4.8bn into bank deposits for use in expansion projects at combined oil and gas fields,” state news agency IRNA reported on Tuesday.
The money would be spent as part of the state budget for next fiscal year, which starts on 21st of March, according to Reuters.Â
The government based its budget on $40 a barrel assumption and cut domestic fuel subsidies last April to make savings with the chance of subsidies being reduced even further, one official said Tuesday.
Additional revenues “will come from correcting the prices of energy products”, IRNA quoted him as saying, without giving details of the plan.
