India, Iran to Sign $3bn Gas Field Development Contract

India will soon sign a $3 billion contract with Iran to develop Farzad B gas field in Persian Gulf, Mehr News Agency reported Sunday.

Earlier this year, Indian state owned energy firm ONGC Videsh (OVL) submitted a revised proposal pertaining to development of Iran’s Farzad B gas field.

The block was discovered by a consortium of state owned companies, ONGC Videsh (OVL), Oil India and Indian Oil Corp in 2008. The consortium did not move forward with the project after sanctions were imposed on Iran.

With Iran signing nuclear agreement with six world powers, sanctions are expected to be lifted which could pave way for development of the gas field.

Mehr reported final negotiations between the two parties are underway.