News ID: 276399
Published: 0259 GMT November 06, 2020

Iranian company to develop Farzad B gas field: Official

Iranian company to develop Farzad B gas field: Official

The managing director of Iran’s Pars Oil and Gas Company (POGC), which is in charge of developing the country’s giant South Pars Gas Field, said the deal for the development of Farzad B gas field, in the Persian Gulf, will be signed with an Iranian company by the end of the current Iranian year (March 20, 2021).

“The initial part of the contract, which includes engineering studies, has been implemented and preliminary work is currently underway,” Mohammad Meshkinfam stated, according to Shana.

Following the completion of the project, the extracted gas from Farzad B gas field will be transferred to the refineries of the South Pars complex and distributed among five refineries, according to the official.

He said, “Additional information about this project and the deal will be announced at the time of the official signing of the contract.”

In July, Managing Director of the National Iranian Oil Company (NIOC) Masoud Karbasian said that the operator for Farzad B gas field was determined and the deal for the development of the field was going to be signed in the near future.

Farzad B, with estimated reserves of 12.8 trillion cubic feet of gas, was opened in 2008 by a consortium of three Indian companies: ONGC, Oil India Limited, and the Indian Oil Corporation.

India was supposed to develop the field after its exploration, but they stopped their activities after the West intensified sanctions on the Islamic Republic in 2012.

With the lifting of the sanctions, India once again called for the development of Farzad B by ONGC Videsh, which is the overseas investment arm of the country’s biggest energy exploration firm.

In May 2019, Iranian Oil Minister Bijan Namdar Zanganeh said the Oil Ministry had prepared a plan for financing the project and the framework of the contract was going through the final stages.

NIOC asked the Indian side to submit a technical plan and a financial proposal for the development of the field. However, after submission, Iran did not agree with the other side’s financial proposals.

In August 2019, Karbasian announced that Iran would not wait for India on developing the Farzad B gas field, and soon the project would know its operator.


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