Iran sells $500 million in energy bonds

TEHRAN, July 5 (UPI) -- Since June 25 Iranian banks have sold $500 million in energy bonds.

The bonds, used by the Pars Oil and Gas Co., are to finance the development of Iran's South Pars Gas Field in the Persian Gulf. POGC intends to sell more than $3 billion in denominated bonds in 2012 to accelerate the development of South Pars gas field projects.

The bonds are tax-free and are guaranteed by the National Iranian Oil Co., with their profit being calculated on a daily basis and being paid every quarter, the Fars news agency reported Wednesday.

Iran's development of its South Pars natural gas field has been planned in 24 phases. Ten of the development phases are now complete, while the development of 14 additional phases is currently under way.

Iran is being forced to raise money for the development of the South Pars natural gas field because of U.S. and U.N. sanctions, which prohibit investment in Iran's hydrocarbon industries because of concerns over its civilian nuclear energy project, which the United States and Israel maintain masks a covert nuclear weapons program, a charge Iran strongly denies.