India May Remain Invested in Farzad-B As Equity Partner: Press

Indian consortium comprising ONGC Videsh, Indian Oil and Oil India may remain invested in Iran’s Farzad-B gas project as equity partners without development rights, Indo-Asian News Service (IANS) reported on July 19 citing sources. The gas field was discovered by ONGC Videsh over a decade ago.

Sources in the Indian oil ministry told IANS that the Indian consortium, which bagged the exploration contract for Farzad-B in 2002, may remain invested in the upstream project as equity partners with other local and international entities even without operatorship or development rights. This, they said, will allow the consortium to get their share of gas to India at applicable rates decided by Iran.

Though the exploration contract signed by the Indian consortium expired in 2009, official sources said that a deal could be negotiated so that India has a presence in the field as equity investors.

Iran has been unsure over grant of development right of Farzad B for few years now. Things have come to a standstill since US sanctions on Iran in 2018 with India also moving slowly on the matter, IANS said.

Sources told the news agency that changes in geo political scenario in the Covid-19 world, which suggests that Iran is coming closer to China while proximity of India is growing towards US, may further spoil the deal to develop the field.