With Iran gradually emerging on the mainstream of oil business post lifting of sanctions and inking of nuclear deal with the US and other key European nations, New Delhi is keen to revive its interest in developing Chabahar port there as an RlNG transportation hub, as well as setting up a possible petrochemical project in the Persian Gulf nation, apart from restarting the pending Iran-Pakistan-India (IPI) gas pipeline.
Sources privy to the development told The Pioneer that India should seize the opportunity of initiating talks with Iran without losing time, as once the US and other nations begin their oil diplomacy with Tehran, New Delhi could face the threat of being elbowed out of contention. They further informed that the Centre is likely to take up deliberations with the Islamic nation at diplomatic levels soon, as the Petroleum Ministry wants to take up the opportunities of developing Chabahar port as an RlNG transportation hub and also reviving the IPI gas pipeline project.
Sources further confirmed that a delegation consisting of officials from Petroleum Ministry and ONGC Videsh ltd (OVl) recently visited Tehran and held preliminary level discussions with their counterparts. The aforementioned projects are also said to have come up for discussions. “These issues did come up for discussion but things currently are at a very preliminary stage,” an official who was part of the delegation, said.
The official further confirmed that the issue of India showing a keen interest in claiming stake in Farzad-B oil field, which incidentally had been discovered by ONGC, had also come up for discussion during the Indian delegation’s visit to that country. OVl and Indian Oil Corporation had together put in around $100 million in the field but could not be exploit it further owing to sanctions imposed on Iran by the US and European Union. The oil field has around 13 trillion cubic feet of reserves, sources said.
With Iran facing prospects of better days ahead after sanctions on it were lifted, industry sources said that India stands to gain a lot from the changed equations. Interestingly with the re-entry of Tehran as a major crude producer, global prices could again face a possibility of falling to $40 a barrel mark, a development which could bring down prices petrol prices in India.
Industry watchers feel that India will not only look to consolidate its position as the second largest buyer of crude oil from that Iran, but will also aggressively explore possibilities of increasing its presence there by collaborating in the development of Chabahar Port, seeking transportation of gas - especially RlNG, and improving trade.
Apart from this, India could also increase its imports from Iran, which it had drastically reduced over the years owing to pressure from US and other nations. Interestingly, despite cutting down its imports from that country, India continues to be the second largest buyer of Iranian crude after China. New Delhi could consolidate that position now, experts said.