TEHRAN– Iran may hold a new tender for the development of its Farzad-B gas field if it fails to finalize a previously signed deal with India, according to National Iranian Oil Company's managing Director Rokneddin Javadi.

Referring to the fresh talks with Indian companies to develop the Farzad-B gas field, Head of Iranian Offshore Oil Company (IOOC) Saeed Hafezi said a contract would be singed if the two sides agree over the details, IRNA reported on Monday.

Iran had asked Indian firms to submit a new development plan for the field which they discovered in 2008, winning the right to develop it.

Last year, Iran had to put Farzad-B in the list of projects for tender after the Indians dragged their feet on its development under the U.S. pressure.

In 2012, United States and European Union imposed sanctions on Iran which prevented other countries from cooperating with Iranian banks and energy sector.

India, however, began pushing rigorously for their development rights to be reinstated after a July nuclear deal with Tehran created concerns in New Delhi that European firms could clinch the contract.  

Farzad-B gas field is estimated to hold 21.68 trillion cubic feet (tcf) of gas in place, of which 12.8 tcf is recoverable.

According to the Iran-India Contract, India was supposed to increase the production of Farzad-B gas field to 2.2 billion cubic feet, a target which it failed to meet due to sanctions on Iran’s energy sector.

Iran introduced its long-awaited new model of oil contracts, known as the Integrated Petroleum Contract (IPC), in a Tehran conference on November 28. 

The IPC will replace buy-back contracts. It is expected to offer more flexible terms on oil price fluctuations and investment risks to make the sector more financially attractive. 

The IPC would be also introduced in a London conference, scheduled for February 2016, where the Farzad-B gas field would go out to tender if a development plan with India fall through.

SJ/MA