Iran’s oil minister, BijanNamdarZanganeh, and his Indian counterpart signed a Memorandum of Understanding (MoU) on Farzad B field development plan, which is to be carried out by National Iranian Oil Company (NIOC) and Indian ONGC Videsh Ltd.
Under the MoU, the Indian side, as the head of a consortium, would propose its financial and operational method to Iran within two months, that is based on the seismic data of the exploratory studies conducted to finalize and draw a Master Development Plan (MDP) for the field.
Farzad B fieldis a hydrocarbon field, located in Farsi Block in the Persian Gulf.
“According to initial negotiations and its agreements, the Indian consortium of the project would propose its financial conditions, investment method and the development plan to the Iranian side within two months,” said POGC Managing Director, Ali AkbarShabanpour. “Then after reaching the financial agreement, NIOC and ONGC Videsh will start talks over defining an MDP and a time schedule for the project and accordingly sign a Heads of Agreement (HOA) once the commitments are realised.”
Pursuant to the agreement, if Indian side is selected for development works, the contractor is responsible for production activities and investment return and additional costs will be paid from revenue and products sales.
The consortium of Farzad B gas field development plan, consisting of several Indian prominent companies, is headed by ONGC Videsh, India’s Oil and Natural Gas Corporation (ONGC) overseas investment arm. The consortium has conducted the exploratory and seismic studies of this offshore region under a contract with the National Iranian Oil Company.
Farzad B, located in Farsi Block, has 21.68 trillion ft3 of in-situ reserves including 8.12 trillion ft3 of natural gas and 212 million bbls of recoverable gas condensates and is among the large and commercial projects for development.
Edited from press release by Angharad Lock
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