Apr 19, 2016, 4:43 PM
Iran, India to seal gas deal

TEHRAN, Apr. 19 (MNA) – Iranian deputy oil minister said Iran and India will sing a contract before the end of 2016 on development of Farzad B gas field.

Roknodin Javadi touched upon the latest status of negotiations held with Indian companies over expansion of Farzad B gas field natural gas field in the Persian Gulf saying “we are advancing the talks with Indians on the basis of former agreements as the deal will become signed if they finalized technical and trade issues within the given deadline.”

Managing director of National Iranian Oil Company (NIOC) estimated that the contract between Iran and India to develop the Iranian gas field will be inked in the current year.

On the increase in Iran’s oil production, Javadi asserted “by mid-June, the country’s crude production will reach about four million barrels per day reach its pre-sanctions output level.”

Javadi recalled that the preparation of new oil contracts is a time-consuming process; “accordingly, it has been decided that eager and capable companies will conduct studies over a portion of Iranian fields based on their preference.”

“The willing companies will work in accordance with a confidentiality agreement without making commitments,” emphasized the official reiterating “by taking advantage of existing technologies, they would analyze approaches to develop the fields and put the results at the disposal if NIOC.”

Javadi recalled a recent agreement signed with BASF's Wintershall oil and gas exploration subsidiary as Germany's largest internationally active crude oil and natural gas producer; “on the basis of the inked agreement, the German company will begin carrying out studies on four oil fields in western Iran in one month’s time,” he concluded.

Farzad B, with estimated reserves of 12.8 trillion cubic feet of gas, was opened in 2008 by a consortium of three Indian companies: ONGC Videsh, Oil India and Indian Oil.

The field has been left undeveloped due to international anti-Iran sanctions that have gradually begun to be lifted this year.




News Code 115947


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