India Loses $3 Billion Farzad-B Gas Field Deal With Iran

India has lost its $3-billion bet on Iran regarding the giant Farzad-B gas field in Farsi block. The Indian state run oil companies discovered this asset back in 2008 and since then the negotiations were being carried out by top leadership of both the countries.

India Loses $3 Billion Farzad-B Gas Field Deal With Iran

The National Iranian oil Company cracked the deal in $1.7 billion after Tehran had rejected India’s $2-billion offer. The Farzad-B is the second Indian proposal that was rejected even after the involvement of top leadership of both the countries.

ONGC Videsh was leading the Indian consortium that invested $400 million and signed the exploration agreement in 2002. However, Iran allowed the agreement to expire in 2009, just a year after the discovery of Farzad-B.

The Consortium was still trying to find out the ways to recover the investment. Since then several deadlines for the deal were missed. In addition to it Tehran also declared Indian offer as unsatisfactory or sometimes added new conditions as well.

It was reported on May 30, 2017 that Iran was planning to replace Indian consortium with the oil companies of other countries. On June 7, 2017 it was revealed that Iran was signing an agreement for Farzad-B with Russia’s Gazprom.

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Indian officials informed that they were well aware of Iran’s intention after Tehran failed to respond to the field development plan submitted by the Consortium in March 2017. Owing to this delay India asked its refiners to reduce the oil import from Iran by 20%.

India has then secured the waiver from Barack Obama administration and was one of the major buyers of oil from Iran. But then Tehran reduced the payment window from 90 days to 60 days and the discount on ocean freight was also cut down from 80% to 60%.

Regarding Iran’s deal with Gazprom, India’s oil minister Dharmendra Pradhan said on June 20, 2017:

“I need assurance on my investment… Iran is a sovereign country and we expect that since we were with it during its challenging days, Iran should reciprocate. We will only invest if we see returns.”

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2 COMMENTS

  1. Isaiah 13:17 Behold, I will stir up the Medes against them, which shall not regard silver; and as for gold, they shall not delight in it. Medes = Iran

  2. On June 7, 2017 it was revealed that Iran was signing an agreement for Farzad-B with Russia’s Gazprom.

    India like it or not is tied to the Queen of England just like the USA is through Serco, QuinetQ [ pronounced kinetic], ect. And the CITY OF LONDON is tied to international bankers trying to get Russia and Iranian reserves.

    It makes more sense from a geopolitical stance to go with Russia. They have stood by Iran during all the Syrian ect middle East Turmoil. Israel has Saudi Arabia, USA, Britian ect as allies when the full month gets pushed by Israel which is brewing now.

    India unfortunately gets Bill Gates grant money , USA CDC….choose your friends carefully and keep your options open….” operation lockstep” is trying to kill us all.

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