Can India mislay Iran's Farzad-B gas field? Read to know more.
By Priti Kumari
As per a government source privy to the matter, India's ONGC Vishesh Limited (OVL) is all set to lose Iran's Farzad-B gas field as Iran looks for domestic companies for the development of the field. A few months prior to this, Iran dropped India from Chabahar -Zahedan Railway line project, citing fund delay.
Farzad-B in the Persian Gulf extends over 3,500 square kilometre area with 20-90 metres depth. In total, it holds your 21.7 trillion cubic feet out of which 1/6th is commercially viable. Approximately, 1.1 billion cubic feet per day is slated.
OVL discovered an enormous gas field in the 'Farsi Offshore Exploration Block' in 2008.Along with its other partners viz. IOC(Indian Oil Corporation) & OIL(Oil India Limited), OVL signed the Exploration Service Contract (ESC) on December 25, 2020, for the same. On August 18, 2008, the Iranian Oil Corporation (NIOC) articulated it commercially feasible.ESC's exploration phase got terminated on June 24, 2009.
It is impressive to note, despite India's offer of investing $11 billion for the development of the block, Tehran's gainsay is manifesting its bent towards Beijing. US sanctions also ceased New Delhi's trade with Tehran. Both renegotiated but it remains inconclusive.
However, in February 2020 Tehran announced its intent of choosing domestic firms over the other consortium. A source cited, Tehran may drop India in the block's development, India will continue to get benefits since New Delhi is the founder of the gas field.