India offers Iran an integrated package to develop Farzad B field.

Indian Express reported that in a renewed effort to hold on to promising energy assets, New Delhi has offered Iran an integrated package for developing the Farzad B field in the West Asian country, which includes swapping gas from the field with other Iranian gas at Chabahar port and also laying pipeline for transportation of the surplus gas to India.

The Farzad B field, estimated to have 21.68 trillion cubic feet of gas reserves, was found by ONGC Videsh, the overseas arm of oil and gas major ONGC, thanks to a 2008 preliminary pact with Iranian authorities but no formal contract to exploit the resources has been signed till date. US sanctions on Iran prevented both sides from making any headway in commercial exploitation of the reserves, with each blaming the other for the delay.

According to official sources, with India offering a new package, Iran has now said that it would renegotiate the deal as per a new Iran Petroleum Contract, which is likely to be unveiled in November. Developing the Farzad B block in the Persian Gulf requires an investment of USD 3 billion to USD 5 billion.

Sources said that 'Tehran hasn't yet taken a call on India's offer, both the countries were, considering laying an undersea pipeline or revive the stalled Iran-Pakistan-India pipeline.'

STEELGURU