3 points amendment to the law on petroleum refineries for financing from the capital market

According to Fars News Agency’s economic correspondent, the construction of a refinery with the aim of converting crude oil exports into exports of valuable petroleum products and neutralizing sanctions, with the approval of the “Law to support the development of downstream crude oil and gas condensate industries” or the law on petroleum refineries in parliament The tenth began in earnest in the country.
Financing is one of the most important challenges in the construction of refineries. Thus, the law and the executive regulations of the law of the parliament have defined the financing framework with a view to attracting the participation of the public sector during the construction period, and in addition, supportive incentives have been considered to facilitate the financing process.
Articles 22 and 23 of the Executive Regulations of the Petroleum Refinery Law state the framework for financing petroleum refinery projects in such a way that, first of all, the project sponsor must provide at least 30% of the required project resources through his own contribution and up to one year after issuance of the permit. , To transfer at least 30% of the company’s shares in various ways.
* Amendments to the new regulations of petroleum refineries to facilitate the financing of projects
After amending and adding 9 clauses to the law at the beginning of this year, the Cabinet of Ministers approved the executive regulations of the amended law in its last meeting on 10/18/1400 and this law was announced. According to this amendment, important changes have been made in order to facilitate the financing process of projects subject to the law.
In the new regulations, the minimum donation of the project from the required resources has been reduced from 30% to 15%, and the founder can inject these resources into the project in proportion to the physical progress and financing stages. The implementing company was also allowed to transfer 30% of the company’s shares up to two years after the license was issued, so one year has been added to the deadline set in the previous bylaws.
Mohammad Ali Ghadiri, an expert in the field of energy, in an interview with Fars News Agency economic reporter about other facilities provided for financing petroleum refineries in the new amendment to the law, says: Do at least two more steps (3 times in total) with the obligee.
He stated: This regulation also stipulates that non-financial institutions approved by the Exchange Organization, individually or in partnership, can play the role of obligee underwriter. The importance of this clause is that many companies may be afraid that the participation in the supply of shares will not reach the quorum and that the existing financial institutions will not be able to provide underwriting figures, or will not accept the risk of participation at all.
Ghadiri stressed: “It seems that the inclusion of this clause in the executive regulations has removed one of the most important obstacles for companies to attract public participation, because underwriting without a committed institution means financing as much as the participation.” It is registered, such as underwriting and refining funds. In this way, the company can sell the remaining shares in subsequent offerings.
According to Fars News Agency, the importance of amending the law in facilitating financing conditions is that, firstly, part of the shares are offered, sold in the first turn, and subsequent underwritings, which are done with the obligee, require less resources from the obligee or obligees. Significantly reduces the risk of divestiture. Secondly, the ground has been prepared for the entry of competent non-financial institutions as underwriters so that there is no limit due to the lack of financial institutions or the low financial capacity of these institutions.
An examination of the amendments to the law and the executive regulations for the construction of the refinery shows that the will of the government to develop this sector is serious. As a result, it is necessary for licensed companies, as executors, to pursue the construction of petroleum refineries more seriously, and the Ministry of Oil and the Exchange Organization, which have the role of regulator and supervisor, to follow and support the construction process of these projects while creating the required infrastructure.
End of message / b
You can edit this post
Suggest this for the front page
.