Iran sets aside oil revenue for South Pars

TEHRAN, June 15 (UPI) -- Three percent of the national oil revenue will be allocated to developments at the offshore South Pars gas field in Iran, ministers say.

The Iranian government approved a proposal offered by the Oil Ministry to set aside 3 percent of the monthly crude revenue to develop South Pars, the Mehr News Agency reports.

In May, Iranian Oil Minister Gholamhossein Nozari said $2 billion from federal coffers would go to develop South Pars. This decision follows an earlier pledge to issue $1.4 billion in government bonds to fund the projects.

The move comes as Iran boasts of its development projects at the South Pars field, the world's largest.

Seifollah Jashnsaz, the chief of the National Iranian Oil Co., led a delegation to Beijing earlier in June to discuss development of Phase 11 at South Pars as Iran looks to replace the French Total at the field.

Total, under pressure from Washington, has made no progress on developing Phase 11 of South Pars despite positive work on Phases 2 and 3, Jashnsaz said.

South Pars gas reserves are estimated at 450 trillion cubic feet, roughly half of all total gas reserves in Iran.