New Delhi Serious for Cooperation in Farzad B

Zamaninia made the remark in an interview with Shana after a meeting with Indian oil delegation, headed by Sunjay Sudhir, joint secretary for international cooperation at India’s oil ministry.

He criticized prolongation of technical and financial talks for development of Farzad B gas field and said Ministry of Petroleum and Natural Gas (MoP&NG) should encourage Indian Oil and Natural Gas Corporation Limited (ONGC) to expedite proposing financial model of partnership in Farzad B gas field.

Farzad B gas field is in Persian block, which is a field rich in gas and gas condensate resources. It is west of north Pars and northwest of Golshan and Ferdowsi fields in Persian Gulf waters.

The initial agreement for E&P of Farzad B was inked with a consortium, comprising three Indian state-owned companies, rich in gas and gas condensate resources, dating as back as about 2000 years. The contracts, however, were put in force in exploration domain and no action was taken for enhancement of extraction of gas resources of the field.

Zamaninia emphasized that talks on the technical and financial aspect of the project are underway by the National Iranian Oil Company (NIOC) and hoped that agreement will soon be reached on the financial model.

He quoted the Indian official as confirming prolongation of the talks.

The Indian official said Indian government is seriously calling for speedy progress in talks.

Sudir said as for technical model, the ONGC ‘s view has got much closer to that of the NIOC on volume of gas reserves in Farzad B and said the same issue can give an impetus to bilateral debates.

The ONGC Videsh is international wing and investment sector of Indian state-owned oil and gas company. The company officials had talks with directors of Pars Oil and Gas Company (POGC) mid August on development of Farzad B gas field. The two sides in the meeting discussed an economic model proposed by the Indian company. Experts of the two sides and the NIOC business and investment director were present in the meeting. 

The suggested model will be studied by the two sides’ experts for 45 days in order to reach final agreement.

 Minister of Petroleum Bijan Zanganeh had recently told reporters that he hoped Indians will not be put aside in the project for development of Farzad B if they fail to present favorable economic model on development of Farzad B. “I hope such a thing will not happen. However, if they do not offer an acceptable proposal, absolutely, we will make other decision.”