SACE to offer unlimited coverage to Iranian projects

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On December 3, 2015, Posted by , In News, With No Comments

Iran says Italian insurance agency Servizi Assicurativi del Commercio Estero (SACE) is ready to cover Tehran-Rome deals up to an unlimited ceiling.

“The company [SACE] will return to Iran as Italy’s biggest export credit agency and is ready to insure deals in Iran to an unlimited ceiling,” said Iranian Deputy Minister for International Affairs and Trading Amir Hossein Zamaninia after a Monday meeting with a 36-member delegation from Italy headed by Carlo Calenda, vice minister for economic development.

Zamaninia told Shana that big and middle-sized Italian companies can run projects in Iran by investing in them with regard to the fact that Iran has introduced major oil and gas projects at the Tehran IPC Conference.

Speaking about the meeting’s highlights, he said the Italian side has said it has no restrictions for investing in Iran.
“SACE insurance company has announced its insurance coverage in Iran will not be lower than the pre-sanctions era and its ceiling with be unlimited,” he added.

SACE offers a complex range of instruments for credit insurance, investment protection, the provision of sureties and financial guarantees. The insurance includes, from an economic-financial, managing and funding the loan.
Prior to the 2012 sanctions in Iran, the agency offered insurance and credit services to many oil and gas projects and, along with many other Italian firms, has endorsed the new oil contract model of Iran, knowns as the Iran Petroleum Contract or (IPC) and has indicated willingness to return to the country in the post-sanctions setting, said Zamaninia.

The Italians have called for introduction by National Iranian Oil Company of Iranian companies for cooperating with them, he added.
Representatives and executives from leading Italian firms including SACE, Saipem, Volvo and Eni were present in the meeting with the top Iranian energy official.

IPC is replacing buyback deals. Under a buyback deal, the host government agrees to pay the contractor an agreed price for all volumes of hydrocarbons the contractor produces.

But under the IPC, National Iranian Oil Company (NIOC) will set up joint ventures for crude oil and gas production with international companies which will be paid with a share of the output.

In the wake of nuclear deal reached last July, Iran has been receiving high-ranking officials and corporate executives of major companies including from Germany, Spain, Austria, Italy, and France to discuss new cooperation ventures.
Zangeneh has said that Iran welcomes foreign investment in its energy industry, but stresses technology transfer by foreign partners in the new contracts.

Iran has offered 52 oil and gas development projects in addition to 18 exploration blocks at the Tehran IPC Conference.
The projects include 29 new and currently producing oilfields and 23 gas developments. Onshore fields make up 34 of the projects. The projects are estimated to be worth more than 30 billion dollars.

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