India is going to be deprived of the development of a large mineral gas field in Iran and a long-pending project of gas extraction. The gas field was discovered by an Indian company. Sources gave this information. According to sources, Iran has decided to hand over the Farzad-B project of the Persian Gulf to its domestic companies. Iran is currently struggling with strict US economic sanctions.
OVL discovered gas reserves in 2008
ONGC Videsh Ltd. A group of Indian companies under the leadership of (OVL) have so far spent $ 400 million, or about Rs 3000 crore on the project. The huge gas reserves in the Farzad-B block were discovered in 2008 by the Indian company ONGC Videsh Ltd (OVL). OVL is a subsidiary of the state-run Oil and Natural Gas Corporation (ONGC). ONGC has made it to invest in foreign projects. OVL had planned to spend $ 11 billion to develop Iran’s gas field.
21,700 billion cubic feet of gas reserves
Iran did not take any decision on OVL’s proposal for years. According to informed sources, Iran’s National Iranian Oil Company (NIOC) told the company in February this year that it wanted to award the Farzad-B project to an Iranian company. There are 21,700 billion cubic feet of gas reserves in that field. 60 percent of it can be removed. 1.1 billion cubic feet of gas can be obtained daily from the project. OVL was keen on a 40 percent stake in the operation of the project. He was also joined by Indian Oil Corporation (IOC) and Oil India Ltd (OIL). They both had 40 and 20 percent share.
The contract was signed in 2002
OVL signed the contract for gas discovery service on 25 December 2002. The Iranian national company declared the project commercially viable in August 2008. OVL had proposed the development of this gas field in April 2011 in front of NIOC, a national company authorized by the Government of Iran. Talks continued on this till November 2012. But the contract was not finalized as progress was made difficult due to difficult conditions as well as international restrictions on Iran.
Spend 40 million dollars so far
Negotiations resumed in April 2015 under the new rule of Iran’s petroleum contract. In April 2016, a decision could not be reached despite a detailed discussion on various aspects of the project development. Technical negotiations could not be completed after the US again imposed an economic ban on Iran in November 2018. A group of Indian companies have spent $ 400 million (Rs 3000 crore) on the project so far.