Azernews.Az

Managing Director of the National Iranian Oil Company (NIOC) Ahmad Qalebani said that Iran will soon have $1 billion in special oil bonds, Shana news agency reported.

Qalebani told Shana that the $1 billion worth of investments include $500 million from Iranian Offshore Oil Company, and the other $500 million from Pars Oil And Gas Company in Iran.

He also said that some time next year Iran will be implementing oil futures -- which are an investment instrument used to speculate on whether the price of oil will rise or fall.

Qalebani noted that there were some issues related to the oil futures with stock exchanges, but now they have all been resolved.

He said Iran will be increasing its oil production by 1 million barrels per day, and its gas production by 400 million cubic meters per day.

The U.S. and Europe have imposed tough sanctions on Iran in a bid to choke off oil revenues and halt a controversial nuclear program the West fears is aimed at developing atomic weapons, although Iran has denied this.

Iran's oil supplies slipped by 150,000 bpd to 2.80 million bpd in July, as the country's crude is subject to a European Union embargo that went into effect on July 1.

Iran's recoverable oil reserves are estimated at 151 billion barrels, including 70 billion barrels of heavy and extra heavy crude. Iran holds the world's fourth largest proven oil reserves and has the second largest natural gas reserves.

Iran's gas production increased in 2011 by 5.6 bcm compared to 2010, according to a BP report released in June 2012.

Currently Iran produces around 620 million cubic meters of gas daily.