The deal was signed by Mohammad Meshkinfam, the managing director of Iran’s POGC, as NIOC representative, and Hamidreza Masoudi, the managing director of Petropars, in a ceremony today.
The signing ceremony was also attended by Oil Minister Bijan Zanganeh.Based on the deal, Petropars is going to develop the field to boost its output to 28 million m3 per day of sour gas over a 5-year period.
The gas produced by this field will be transferred to the onshore facilities of Pars 2 Region in Kangan for processing.
Farzad-B, with estimated reserves of 12.8 trillion cubic feet of gas, was opened in 2008 by a consortium of 3 Indian companies:
- Oil India Limited
- Indian Oil Corporation
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, Zanganeh said the Oil Ministry had prepared a plan for financing the project and the framework of the contract was going through final editions.
NIOC asked the Indian side to submit a technical plan and then a financial proposal for the development of the field, however, after submission Iran did not agree with the other side's financial proposals.
Later in August 2019, Karbasian announced that Iran was not going to wait for India on developing Farzad-B gas field, and soon the project would know its operator.