Amid reports that Iran has awarded the prolific Farzad B gas field to Russia’s Gazprom, petroleum minister Dharmendra Pradhan on Monday said India would not mind if the asset in the Persian Gulf is denied to it.
The field in the Farsi block, which was discovered by India’s ONGC Videsh (OVL) ten years back, has an in-place gas reserve of 21.7 tcf, of which 12.5 tcf are recoverable. However, the deal has been delayed as the two countries could not agree on a price and a rate of return for OVL-led consortium’s investments. The other partners of the consortium include Indian Oil and Oil India.
Pradhan said there is no point is wondering whether the deal is on or off till a financial model is not in place. “I need assurance on my investment,” added Pradhan.
Though India maintains that the negotiations with Iran is still on, Iran’s oil minister Bijan Namdar Zanganeh, as reported, has said the country has signed an agreement with Gazprom for the prolific filed in the Persian Gulf.
“Iran is a sovereign country and we expect that since we were with it during its challenging days, Iran should reciprocate. We will only make investment if we see returns,” said Pradhan. Despite western sanctions which were lifted recently, India was among the few countries which continued trade even then.