Iran Signs $3 Billion Gas Contract with Association of Indian Companies

Iran Signs Gas Contract with India

Based on the agency reports, Iran has agreed upon USD 3 billion association with Indian companies, in which Farzad B will develop gas field in the Persian Gulf; says reports. The director of Falat Ghare oil company Saeed Hafezi in his interview with news agency said the lifting of sanctions means that the association can recommence development of gas field.

However, Managing Director of ONGC Videsh, the Indian company who will lead this partnership, has not yet given any confirmation over the deal, saying that they had not been notified yet about the development.

N.K. Verma, Managing Director, ONGC Videsh said “We have not received any communication from Iran on granting us the development rights.”

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Verma further informed that ONGC Videsh has recently visited Iran, considering the proposal submitted by Indian companies. The first phase of development in Farzad B gas field would incur cost of nearly USD 3 Billion.

Here it is required to mention that ONGC Videsh is a part of Oil and Natural Gas Corp, which looks into the matters of overseas investment.

Whereas, Hafezi in his interview with news agencies added that, the aim of developing the first phase is to produce one billion cubic feet of natural gas per day.

An agreement between six world power and Iran held in July this year has eased the sanction procedures to clear the way, raising prospects for gas field estimated to hold in-place reserves of 12.5 trillion cubic feet, with a lifetime of 30 years.

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