After Lack of Progress With India, Iran May Issue Tender for Farzad-B Gas Field

Iran may hold a new tender if it fails to reach agreement with India on the Farzad-B gas field development project.

The gas field, which is located in the offshore Farsi block in the Persian Gulf, is estimated to hold 12.8 trillion cubic feet of gas reserves.

IRNA news agency reported on December 21st that the two countries have held intensive talks over the past months on transferring the development of the Farzad-B gas field to India, but the sides haven't reach a common terms yet.

National Iranian Oil Company’s managing director Roknoddin Javadi has said that a new international tender may be held in case a final agreement is not reached with India.

Last year, Iran had to put the Farzad-B in the list of projects for tender after the Indians dragged their feet on its development under U.S. pressure.

It is most likely that the gas field to be introduced to foreign investors in a conference that is scheduled to be held in February in London.

India’s ONGC Videsh Ltd (OVL), which is the overseas arm of Indian state-owned Oil and Natural Gas Corp, has offered a proposal worth $10 billion for development of the gas field.

Iran had asked Indian firms to submit a new development plan for the field, which they discovered in 2008.