Iran’s Minister of Petroleum Bijan Namdar Zanganeh (file photo)

Talks over Farzad B development underway with India: Iran

Shana– Iranian Minister of Petroleum Bijan Zangeneh says talks with Indian developers are still going on for developing Farzad B gas field.

Speaking to reporters following a cabinet meeting on Wednesday, Zangeneh said Iran has not reached an agreement with ONGC Videsh Ltd over development of the field, however talks are still on the go over development of the 12.5 trillion cubic feet gas field.

“To prevent losing time, we are holding parallel talks with Russia’s Gazprom company over the project,” he said, adding Iran has also started studies over the field and may consider an alternative method for its development.

“Yes. We have signed an initial agreement with them (Gazprom) or Farzad, the North Pars and Kish fields,” he said in an interview Argus in Vienna.

Farzad B was discovered by OVL in the Farsi block about 10 years ago. The project has so far cost the OVL-led consortium, which also includes Oil India Ltd and Indian Oil Corp (IOC), over USD 80 million.

Sources said that in the master development plan (MDP), the company has estimated cost of putting up a facility to convert gas into LNG and shipping it to India at USD 5-6 billion.

He further said, “Iran is keen on diversifying its crude oil customers,” adding the number of Iran’s customers has increased compared to the pre-JCPOA era.