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Iran: Not obligated to give India Farzad B gas field

01 Aug 2017 | By Abheet Sethi

Iran said it is under no obligation to award the contract to develop its Farzad B gas field to India.

This comes after India said it's willing to invest nearly $11 billion to develop the field, which was discovered by an ONGC-led consortium of Indian companies in 2008.

Tehran has also rejected India's threat of reducing oil imports from Iran.

In context: Iran-India Farzad B gas field row

01 Aug 2017Iran: Not obligated to give India Farzad B gas field

DetailsIndia says Tehran should reciprocate oil purchases, despite sanctions

Iran signed a basic agreement to develop the gas field with Russian energy giant Gazprom in May.

The move was in retaliation to India's threat to cut imports of Iranian oil if the contract for Farzad B wasn't given to it.

Last month, India said Tehran should reciprocate the faith shown by it in buying oil from Iran even though it faced international sanctions.

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ExplainedIran: No agreement signed to allow India to develop field

The Iranian parliament's energy commission chief Asadollah Gharekhani said both Iran and India had decided to conduct joint feasibility studies on the Frazad B field, which were completed.

"However, no decision was made that would suggest the project to develop the field should necessarily be contracted out to India," Gharekhani said.

The issue has strained India's ties with Iran.

StatementIran: Free to give development rights to any company

Gharekhani also said the Indian consortium could've received priority on Farzad B.

But if other companies ordered better terms when it comes to investment and technology, Iran would be free to select the firm best serving its national interests.

He also said Iran suffered losses selling oil to India and receiving payments in Indian Rupees.