Project-Based Financing via Istisna Sukuk in the Oil Industry

Project-based management is an approach in which the project properties are regarded as the financing support and the received loans are repaid using the future gains. Project-based management can be fulfilled through issuing Sukuk. This system is an approach that exercises the potentials of this kind of financing in the form of Islamic financial instruments. Given the justifiability of fulfilling the upstream oil projects and the significant cash flows resulting from them, one can expect that it may be possible to exercise the methods suggested here in the Iranian oil industry. This research, which has been fulfilled using a qualitative approach and an interpretative research method based on expert's views and focusing on case studies, is directed towards introducing and exercising project-based financing using the capacities of Istisna Sukuk. In conclusion, a model for project-based financing through Istisna Sukuk is introduced that has been reached by some modifications in the general models of Istisna Sukuk enforced with the aim of the model being more consistent with the limitations of oil projects.