Anticipating easing of Western sanctions against it, Iran is acting tough over giving state- owned ONGC the rights to develop the Farzad-B gas field in the Persian Gulf.
Apparently upset over India not committing to invest in the ONGC-discovered field when Iran was under sanctions, the Persian Gulf nation remained non-committal on giving rights of the field to ONGC Videsh ltd when a high level Indian delegation visited Tehran last month, sources said.
While the Indian side insists it is engaged with Iran on the issue, Iran’s semi-official Fars News Agency last week reported that Tehran has withdrawn the offer for Farzad-B. “Tehran hasn’t accepted the offer and has decided to withdraw its offer for the development of the country’s Frazad B gas field to Indian contractors and plans to put out the project to tender,” it reported citing unnamed Iranian Oil Ministry sources.
Indian officials, however, said they haven’t heard anything from Tehran on the issue and the news report may be part of Iran’s attempt to put pressure on ONGC to accept its terms. Tehran also wants India to raise oil imports.
“We continue to be engaged with Iran on the issue,” an official said. A delegation, headed by Ashutosh Jindal, Joint Secretary in Ministry of Petroleum and Natural Gas, held extensive talks with Iranian officials on development rights to the Farzad-B gas field in the Farsi block.
Iran had last month reached a framework nuclear agreement with the six world powers, spurring hopes of a final deal by June-end that could lead to the lifting of economic sanctions.
Indian firms have so far shied away from investing in Iran for the fear of being sanctioned by the US and Europe. ONGC Videsh ltd, the overseas arm of state-owned Oil and Natural Gas Corp, had in 2008 discovered the Farzad-B gas field in its Farsi exploration block in the Persian Gulf.