India to invest some $5B in Iran’s Farzad B gas field

 
 

By Fatih Karimov – Trend:

Baku, Azerbaijan, Aug. 24

India will invest about $5 billion into Iran's first phase of Farzad B gas field’s development project, Ali Akbar Shabanpour, managing director of Pars Oil and Gas Company, said.

Based on primary estimates, about $4.5 to $5 billion is needed for development of the field in the first phase, however the final figure will be determined after further negotiations, Shabanpour said, Mehr news agency reported Aug. 24.

The financial investment model will be determined at the upcoming talks, he said, adding that the Indian side will provide all needed financial resources.

He further said that last week Iran and the Indian ONGC discussed technical issues and financial investment model for development of the gas field.

The two sides have almost overcame the differences, he said, forecasting that the HOA agreement will be signed by the end of September.

HOA is a non-binding document outlining the main issues relevant to a tentative (partnership or other) agreement.

Iran and India have agreed to produce two billion cubic feet of natural gas from the field a day in the first phase, Shabanpour said.

He further said that the Indian ONGC should peak an Iranian partner for development of the Farzad B gas field.

An Indian delegation visited Tehran last week and held talks with the National Iranian Oil Company officials.

In 2008, a consortium of OVL (ONGC Videsh Ltd.), Oil India Ltd. and Indian Oil Corp. discovered the Farzad B gas field in the Farsi block, which is estimated to contain 12.8 trillion cubic feet of recoverable reserves.

In August 2010, OVL submitted a revised master development plan (MDP) for producing 60 percent of the field's in-place gas reserves, but did not sign a contract with the Iranian side out of fear it would be exposed to sanctions imposed by the US on Iran's energy sector, which did not allow foreign companies to invest more than $20 million a year in the country's energy sector.

After the West lifted sanctions against Iran under the nuclear agreement, OVL proposed a $3 billion field development plan to Iran to develop Farzad B.
 

Iran and India have agreed to produce two billion cubic feet of natural gas from the field a day in the first phase, Shabanpour said.

 

He further said that the Indian ONGC should peak an Iranian partner for development of the Farzad B gas field.

 

An Indian delegation visited Tehran last week and held talks with the National Iranian Oil Company officials.

 

In 2008, a consortium of OVL (ONGC Videsh Ltd.), Oil India Ltd. and Indian Oil Corp. discovered the Farzad B gas field in the Farsi block, which is estimated to contain 12.8 trillion cubic feet of recoverable reserves.

 

In August 2010, OVL submitted a revised master development plan (MDP) for producing 60 percent of the field's in-place gas reserves, but did not sign a contract with the Iranian side out of fear it would be exposed to sanctions imposed by the US on Iran's energy sector, which did not allow foreign companies to invest more than $20 million a year in the country's energy sector.

 

After the West lifted sanctions against Iran under the nuclear agreement, OVL proposed a $3 billion field development plan to Iran to develop Farzad B.

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