Iran, India Discussing Farzad B Gas Price

Iran-India deal on Farzad B gas field is stuck on the issue of price, Indian oil minister said on Friday.

Iran has, however, assured New Delhi that India will get the right to develop the field. Earlier Tehran was looking to market the gas for local consumption so was desiring low prices but now it wants the developer to market it and so is seeking a higher rate, Press Trust of India reported.

“Iran has in-principle agreed to give the field to India on nomination basis. Right now price is being discussed,” India’s oil minister Dharmendra Pradhan told reporters in New Delhi.

The minister hoped these issues will be ironed out in a few months. “We have an October deadline to finalise a contract and are hopeful to do so within the deadline,” Press Trust quoted the minister as saying.

Farzad-B gas field in the Persian Gulf was discovered in 2008 by India’s ONGC Videsh, the overseas arm of the India’s state-owned Oil and Natural Gas Corporation (ONGC). Development of the field has been delayed due to western sanctions on Iran.

The gas field was on the top of the agenda when Pradhan visited Iran earlier this year. Farzad B was again discussed when Indian Prime Minister Narendra Modi visited earlier this month.