TEHRAN (IRNA) -- National Iranian Oil Company (NIOC) has signed an agreement with a consortium of international banks to provide as much as 1.750 billion dollars in finance for the development of phases 9 and 10 of the South Pars gas project.

The NIOC public relations office in a statement on Monday stressed that the agreement is meant to supply financial credits for purchasing goods, facilities and services from certain European and Asian countries as well as Iranian domestic enterprises.

The company added that the consortium, which is led by Germany's Deutsche Bank, will cover at least 50 percent of the purchase deals.

It stressed that other financial institutions in the consortium include Export-Import Bank of Korea (that acts as a direct supplier of credits), Kreditanstalt fur Wideraufbau (KfW), Natexis Banques Popularies, BNP Paribas Bank, Commerzbank, ING Bank and SG Corporate and Investment Banking Institute.

The NIOC said the finance will be provided either through a package of 1.220 billion dollars that will be insured by European export credit funds and the Export-Import Bank of Korea, or as complementary financial facilities totalling 525 million dollars that will guarantee trade credits to NIOC.

The company stressed that this is the first time that foreign banking institutions are providing Iranian contractors with such a credit for a project that has a return period of 10 years.

The South Pars project has an annual yeild of over two billion dollars.