Fars News Agency reports that Iran's state oil company has frozen its bank accounts due to debt.
A state-owned lender has frozen the National Iranian Oil Company’s bank accounts due to mounting debts, according to the semi-official Fars News Agency. This highlights the pressures being felt by Iran’s largest source of revenue.
Fars reported that the Bank of Industry and 'Mine didn't provide any details?on a?the amount owed, or the affected accounts, despite the fact that Iran’s budget law deferred the repayment of certain NIOC NIOC until the end the Iranian calendar year, in March 2027.
Separately the head of National Development Fund (NDF) said NIOC wouldn't be able to?repay the fund a debt of nearly $17 billion using proceeds from Azadegan, one of the largest oilfields in the country, because its development had been slowed down by bureaucratic and administrative obstacles.
"The repayment by NIOC of its debt via 'this route' (Azadegan), won't work." Mehdi ghazanfari, quoted by the semi-official Borna News Agency as saying that there was hope to pay debts through moves like the cessions of other oilfields. However, due to current conditions and a lack of leniency it is not possible.
He said that he hoped the issue would be resolved with the end to the U.S. and Israeli war against Iran.
The NIOC Public Relations office did not respond immediately to a comment request.
The recent developments have highlighted the mounting financial pressures that NIOC is facing. Sanctions, years of underinvestment, and reliance upon domestic financing?have all increased pressure on NIOC's balance sheet.
Due to U.S. sanction, foreign investors are largely absent in the energy sector of the country. NIOC is increasingly relying on domestic?institutions to finance the development of fields, such as the NDF. The NDF has become a project finance source, despite its original purpose as a sovereign wealth fund.
TAX DISPUTES OVER COMPLIANCE
NIOC also?had disagreements with tax authorities regarding compliance with recent digital invoice rules.
Morteza 'Rouhi', deputy director of the company's tax management, revealed on Wednesday that the tax authorities had blocked and withdrawn money?from certain NIOC account over the dispute. However, enforcement was stopped following an intervention by the government's Legal Office.
Rouhi, a semi-official Tasnim reporter reported that NIOC argued against treating its state-controlled sales of oil and confidential export transactions as ordinary commercial activities.
(source: Reuters)
