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Iran says resolved Farzad B Gas Field’s disputes with India

Iran says it has resolved differences with India over the development of Farzad B Gas Field, suggesting that a deal between the two countries over the project could be imminent.

According to Press TV, Iran’s Oil Minister Bijan Zangeneh told reporters in New Delhi that he had discussed Farzad B Gas Field with his Indian counterpart Dharmendra Pradhan, adding that disputes between Iran and India over the project had been resolved accordingly.

Zangeneh emphasized that India would present its proposals over the development of the field within the next two months.

Farzad B Gas Field – located in the Persian Gulf – was discovered by a consortium led by India’s ONGC Videsh Ltd over a decade ago. However, discussions between Tehran and New Delhi over the development of the field never moved toward finalization due to disputes over technical aspects – most importantly pricing.

Differences over Farzad B Gas Field escalated over the past months when India was reported to be considering reducing oil imports from Iran in reprisal against Tehran’s failure to award the project to Indian enterprises.

The Indian media on Wednesday said Iran had agreed to a new arrangement that envisaged taking all the gas produced at the field by Iran. However, certain differences still remained over investment returns, the media in New Delhi reported.

The Press Trust of India said Iran had given up on its demand that Indian companies buy all the gas produced in the offshore field.

“Iran has now written to OVL, agreeing to take delivery of all of the gas produced from Farzad B offshore field at a landfall point in the Persian Gulf nation,” it said.

OVL, the overseas investment arm of ONGC, has accepted the offer and has asked Iran to detail the delivery point, the PTI cited sources privy to the development as saying.