India will not take $5.2bn Iran gas field development project due to US sanctions: Energy minister
Iran's minister of petroleum said that he could no longer wait for India to make a decision on whether or not it would develop the fields
Iranian Minister of Petroleum Bijan Zangeneh said India was not planning to develop Iran’s Farzad B gas field due to sanctions, according to the government's petroleum news agency SHANA.
Speaking to ICANA, the official said that the Iranian Ministry of Petroleum had shown the highest level of historical flexibility to the Indian side with regard to development of Farzad B gas field, but the Indians had so far refrained from developing the field due to the US sanctions.
“We gave them great concessions,… but it seems that the Indians have not signed any contracts for developing the field because of the sanctions,” he said.
“... If they do not indicate their readiness to develop the field after a certain period of time we will have to prepared the licensing round for having the field developed by an Iranian contractor … and have the project bankrolled by dipping into the National Development Fund of Iran.”
Farzad A and B's development projects will cost $5.2bn, of which about $2.2bn concerns Farzad B’s first phase development, in order to produce 1bn cubic feet a day of gas from the field.
Iran share the field with Saudi Arabia which has started production from the field.
“Iran's relations with China and India are strategic ones and we can not influence our relations with these countries only because of a project; we must definitely negotiate with the Indians about Farzad B and declare to them that we cannot wait anymore. We do not want to challenge the relations between Iran and these countries, even if the sanctions are lifted, we are ready to sign a deal with Indians for Farzad B development project and continue this plan,” the official said.
Asked about the current state of South Pars Phase 11 project, Mr. Zangeneh said currently, China enjoyed 80.1% of South Pars Phase 11 development contract’s stocks and is the leader of the contract and talks are continuing with CNPC International for carrying out the project.
Development of the project required an investment of $5.5bn, and the first phase would need $2.4bn of investment.
If the required funds could be allocated to the Iranian Ministry of Petroleum the first phase of the project with 70% partnership of Iranian companied could be completed, he further claimed.