India upset with Iran over gas field development rights

NEW DELHI: India is upset with Iran over the development of a major Iranian gas field, with a minister saying Tehran should reciprocate New Delhi’s support for it during the years of Western sanctions.

Oil Minister Dharmendra Pradhan said India continued to buy Iranian oil during its fight with the West over Tehran’s nuclear programme.

The minister said Iran should return the favour by awarding the rights for developing the huge Farzad B gas field to ONGC Videsh Ltd (OVL), the international arm of Indian state-owned Oil and Natural Gas Corp (ONGC).

“We have that much expectation from Iran. I hope Iran will comply with that,” Pradhan was quoted as saying by the Indian media yesterday.

An Indian consortium, which includes Oil India Ltd and Indian Oil Corp, has reportedly spent US$80 million on the gas field work since ONGC Videsh discovered it in the Farsi offshore block in 2008.

The Indian company had years ago proposed an investment of US$5.5 billion, which Iran found unacceptable.

In March, the consortium offered a US$3-billion investment plan to Iran. But according to reports, Iran recently signed an agreement with Russian gas giant Gazprom for developing the Farzad B, North Pars and Dish fields.

However, it seems India still hopes to have a deal for Farzad B, which has an estimated gas reserves of 18.75 trillion cubic feet.

An agreement has eluded the two sides for years for various reasons.

Meanwhile, India has cut its oil imports from Iran from 240,000 barrels per day (bpd) in the 201617 financial year to 190,000 bpd in 2017-18.

Iran has responded by reducing the credit period it gives to Indian oil buyers from 90 days to 60 days. — Bernama