TEHRAN – Talks with India’s Oil and Natural Gas Corporation (ONGC) on the development of Farzad-B offshore gas field are underway and the final agreement is set to be made by the end of September, the managing director of Pars Oil and Gas Company (POGC), Ali-Akbar Shabanpour, said.

After a meeting between POGC officials and those from ONGC, Shabanpour said that expert teams of the two companies will continue studies to reach the final agreement within the next 45 days, Shana news agency reported on Thursday.

The POGC managing director noted that during the Thursday meeting, which followed the visit paid by Indian Minister of Petroleum and Gas Dharmendra Pradhan to Iran in early April and his negotiations with Iranian Oil Minister Bijan Namdar Zanganeh on the project, the Indian company’s proposed “financial investment model” was investigated in presence of the director of the Investment and Business Department of National Iranian Oil Company and experts of the two sides.

Shabanpour underscored that the main goal targeted by the Indian side has been increasing the daily production level in Farzad-B from 1.1 billion cubic feet up to two billion cubic feet.

“The two sides share close stances on financial and investment issues,” he said, “initial agreements have been reached.” 

Shabanpour added that according to ONGC’s demand, some remained investigation will be conducted by the Indian experts and the eventual agreement will be finalized in the near future.

Earlier in March, Iran and India agreed to sign a contract to develop Farzad-B gas field in the Persian Gulf by October and companies involved in the deal were given deadlines to complete negotiations.

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 Indian Oil Corporation.

The field has been left undeveloped due to international anti-Iran sanctions that have gradually begun to be lifted this year.

HJ/MA