28 May 2016 - 10:29
  • News Code: 261651
Iran Waiting for India Finance Offer on Farzad B

TEHRAN, May 28 (Shana) – Managing Director of Pars Oil and Gas Company Ali Akbar Shabanpour said the company is expecting a financial plan by Indian companies that have agreed to develop Farzad B gas field.

"Iran and India are in talks for developing Farzad B gas field and we are expecting a financial model for developing the field from them," said the official in a conversation with Shana. 

Once POGC receives the proposal, it will start studies on its feasibility and profitability for the country and will then enter into a heads of agreement (HOA) with Indian developers. 

POGC is waiting for Indians to offer their financial model for how they will share the recovered gas and gas condensates from the field with Iran as the host country, he said.

Development of Farzad A and B fields need around 9 billion dollars in investment. The location of these fields near Forouz and Lavan indicate the country’s high potential for gas production.

Iran may use the new model of energy contracts for developing Farzad B gas field.

Farzad B development was formerly being carried out under a buyback contract with ONGC India, but the contract can be presented in the IPC model, said Shabanpour in April.

A consortium led by ONGC Videsh with investments by ONGC India located gas in Farsi offshore block in Persian Gulf. The consortium has indicated interest to extract natural gas from Farzad B.  
News Code 261651

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