TEHRAN (PIN) -– Iran Offshore Engineering and Construction Company (IOEC) will submit a letter of guarantee, which is prerequisite for putting contract for developing phases 17 and 18 of South Pars gas field into effect.

Soltanpur, managing director of IOEC, told Petroenergy Information Network that since there is no proportion between assets and capital of the company, bank has refrained from issuing needed letter of guarantee for the implementation of the project.

He said banks issue such letters on the basis of registered capital of companies. “However, since capitalization of the company has not been given priority by Industries Development and Renovation Organization has postponed the project,” he said.

The official stated that Oil Pension Fund which owns 51 percent of the company’s stocks could not reach an agreement with Industries Development and Renovation Organization for capitalization of the company, though legal inspector of the organization had confirmed that the company’s capital surpasses its assets.

The said IOEC is implementing projects worth over 2.5 billion dollars while its capital is one-hundredth of that figure.

He expressed hope that the problem, which has postponed development of South Pars phases 17 and 18, will be solved soon.

He said the company is currently implementing 8 projects throughout the country. “Salman project has progressed 85 percent, Abuzar project has progressed 60 percent, and installations project of Bahregansar field has progressed 80 percent,” he noted. Soltanpur added that development of Foruzan and Esfandiar fields is another plan in which Iran Offshore Engineering and Construction Company is involved, saying, “IOEC is cooperating with a foreign company which has completed engineering operations of the project.”

The managing director noted that development of South Pars phases 9 and 10 is going on and activities relate to purchasing equipment and drilling in the said phases has begun.

Soltanpur noted that IOEC is to sign a contract with Khatam-ol-Anbia reconstruction headquarters to cooperate in development of phases 15 and 16 of South Pars gas field.

Regarding overseas projects of the company he noted that RSPPM project in India has progressed 80 percent and will be finished within the next two months.

He said the company has signed an offshore project with Indonesia worth 160 million dollars. The official stated that the contract has been signed with another company most of whose stocks belongs to Iran Offshore Engineering and Construction Company.

Soltanpur stated that the company is implementing an offshore project in Taiwan worth 240 million dollars which is going through final stages.

The official noted that the IOEC is also cooperating with a Mexican company on a project whose engineering operations have already started.