Iran on Monday gave the Farzad B gas field to Petropars, a domestic gas producer. This is a setback for India’s energy ties with Iran, as ONGC Videsh Ltd (OVL) discovered the gas field in 2000 and has been part of ongoing cooperation on that front.
According to Iran news agency
the deal was signed at an event on Monday that was chaired by Iran’s oil minister, Bijan Zanganeh. The agreement was signed between Mohammed Meshkinfam, CEO of Pars Oil and Gas Company, on behalf of the National Iranian Oil Company, and Hamid Reza Masoudi, CEO of Petropars Group.
The Foreign Ministry has yet to comment on the development, but OVL has discovered the Farzad B gas field in the Farsi region, which is located between the Iranian and Saudi territories. Monday’s Iran deal comes despite India’s long-standing cooperation over the gas field and is indicative of the impact of US sanctions on India-Iran energy cooperation, which was drastically reduced during Donald Trump’s government. In the USA.
Last year, Zanganeh indicated that international negotiations in the Farzad B bloc had become difficult because of sanctions. Monday’s deal will pave the way for the daily production of 28 million cubic meters of gas over five years, he said.