OIL & GAS

Iran to develop Farzad B gas field domestically, dumps India

Iran on Monday gave the Farzad B gas field to Petropars, a domestic gas producer. This is a setback for India’s energy ties with Iran as ONGC Videsh Ltd (OVL) had discovered the gas field in 2000 and has been part of the ongoing cooperation on that front.

According to Iran’s news agency Shana, the deal was signed in an event on Monday which was presided over by Iran’s Minister of Petroleum Bijan Zanganeh. The deal was signed between Mohammed Meshkinfam, CEO of Pars Oil and Gas Company, on behalf of the National Iranian Oil Company, and Hamid Reza Masoudi, CEO of Petropars Group.

The Ministry of External Affairs has not yet commented on the development but OVL had discovered the Farzad B gas field in the Farsi region, which is located between the Iranian and Saudi territories. Monday’s deal in Iran comes despite India’s long-standing cooperation regarding the gas field and is indicative of the impact of the U.S. sanctions on India-Iran energy cooperation, which had been drastically reduced during the Donald Trump administration in the U.S.

Last year, Mr. Zanganeh had indicated that foreign talks on the Farzad B block had become difficult because of the sanctions. Monday’s deal will pave the way for daily production of 28 million cu m of gas over five years, reported Shana.

Source
The Hindu
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