Farzad B Field Settled: Iran

Iran and India have settled the outstanding difference regarding the development project of Iran’s Farzad B gas field, Iranian oil minister Bijan Namdar Zangeneh told Islamic Republic News Agency (IRNA) in New Delhi April 11 where he is attending the 16th International Energy Forum Ministerial Meeting.

Zangeneh had met his Indian counterpart Dharmendra Pradhan and the two focused on Farzad B development plans, he said, adding that India is keen to offer its proposals for the field within the next two months.

Farzad B which has 540bn m³ reserves was discovered by a consortium of OVL, Indian Oil Corporation and Oil India. Iran and India have been discussing the development plans for the field for last few years.

OVL last year offered to invest $11bn in Farzad B and to build the liquefaction capacity to export the gas; but Iran has been reluctant to award the rights of the field to the Indian firm owing to differences over the gas price. In February, Press trust of India reported that OVL was working on a new plan covering just the upstream part, while leaving the marketing to Iran. Sources told Press Trust of India that the upstream part will cost $6.2bn but Iran believes it should not cost more than $5.5bn. IRNA has now reported that the two parties are determined to bring talks on development of Farzad B gas field to an end.