Evaluating China's Credit Lines in the Financing of Iran's Oil and Gas Industry Projects

Zamani, Mohammad Ali; Hasanzadeh, Hossein; Seifian, Ali; Qezelbash, Mohammad

doi:10.22054/jiee.2023.71441.1969

Evaluating China's Credit Lines in the Financing of Iran's Oil and Gas Industry Projects

Document Type : Research Paper

Authors

Mohammad Ali Zamani ¹

Hossein Hasanzadeh ²

Ali Seifian ³

Mohammad Qezelbash ⁴

¹ Master's Degree, Islamic Studies and Financial Management, Imam Sadiq University, Tehran, Iran.

² Assistant Professor, Department of Islamic Studies and Financial Management, Imam Sadiq University, Tehran, Iran.

³ Ph.D. Student of Oil and Gas Contract Management, Imam Sadiq University, Tehran, Iran.

⁴ Ph.D. Student of Financial Engineering, Allameh Tabataba’i University, Tehran, Iran.

https://doi.org/10.22054/jiee.2023.71441.1969

Abstract

Making long-term investments in the oil and gas industry to maintain the current production levels and increase its capacity is one of the ways to increase economic resilience in the country's upstream documents, including the resistance economy's general policies. In recent years, there have been intense sanctions on the country, especially in the energy field. The importance of proper use of China's allocated credit lines to finance these projects is revealed due to the high need for investment in oil and gas industry projects and the impossibility of covering the investment needs of this industry from domestic sources, and the challenge in effective communication with international monetary and financial institutions. Anyway, the conducted studies indicate serious challenges in using the capacity of these credit lines. For this purpose, this research tries to investigate these challenges from many aspects. After studying the background of the research and reviewing various sources, this article conducted targeted interviews with financing experts. Also, the challenges of using credit lines were extracted and classified into four categories: financial and economic, executive and operational, structural and institutional, and juridical and legal, utilizing the method of thematic analysis and focus group. The extracted challenges were exposed to experts to validate the findings. Finally, the formation of the focus group presented the corrective solutions for the use of credit lines to finance oil and gas industry projects.

Keywords

credit lines

financing

Iran's oil and gas industry

China's credit lines

Subjects

سیاستگذاری‌های اقتصادی و مالی در حوزه‌های فوق‌الذکر در سطوح ملی، منطقه‌ای و جهانی

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