The National Iranian Oil Company signed a $1.7 billion contract with Iran’s Petropars Ltd. to develop the giant Farzad-B gas field, Trend reports citing Mehr.
The contract was signed in the presence of the Iranian oil minister Zanganeh, head of Pars Oil and Gas company (POGC) Mohammad Meshkinfam, and other Iranian officials.
According to the contract, Petropars will produce 28 million cubic meters of gas a day from the offshore deposit within five years.
An Indian consortium led by ONGC Videsh Ltd. was engaged in talks with Iran to develop the field but disagreements over investment volume and gas prices delayed progress and negotiations stalled completely after the US reimposed sanctions on Iran in 2018.
Farzad-B is the latest major energy project awarded to Petropars following the exodus of foreign companies from the Islamic Republic’s oil and gas industry.
Last year, it took over the development of an offshore phase of Iran’s South Pars field after its partners Total SA and China National Petroleum Corp. quit the $5 billion project because of sanctions.