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IRGC’s Khatam al-Anbiya, the IRGC’s economic and engineering arm, 10 projects in oil and petrochemical industries worth $22bn, four times the official budget of the IRGC.
The US in April made the unprecedented move of officially designating the IRGC as a foreign terrorist organisation (FTO). In response, Iran listed the US military’s CENTCOM, which covers operations in the Middle East, as terrorist.
Iran’s Petroleum Minister Bijan Zanganeh has said that if India is not willing to move ahead with the Farzad B gas field expansion in the Persian Gulf, local firms would happily to take its place, official Iranian energy news agency SHANA has reported.
An Indian consortium led by ONGC Videsh was initially willing to invest up to $11bn to develop what is Iran’s second-biggest gas field and build infrastructure to export its hydrocarbons. However, the return of US sanctions directed at the Islamic Republic and the Indian company’s reluctance to invest for fear of incurring US reprisals has rendered the profitable field partly dormant.
“Although the Indians have not voiced readiness for expanding Farzad B gas field, we intend to do the final negotiations with them, and if they remain reluctant, we will start the job with an Iranian company instead,” Zanganeh said.
“NIOC [National Iranian Oil Co] has prepared a plan for financing the project,” he added: “Other issues including preparing the contract.”
India and Iran have been involved in several failed rounds of discussions over the potential deal for the field in recent years. Latest discussions over Farzad B were initiated well over a year ago, but out of frustration Iran offered the deal to develop the offshore field to Russia’s Gazprom. It remains to be seen whether any agreement will emerge following that offer.
The ONGC Videsh-led Indian consortium eventually made a Farzad B offer to the Iranians of $6bn with another $5bn to be spent on constructing a liquefied natural gas export facility on the Iranian mainland. But given the US pressure, progressing the offer to acceptance may not be feasible for New Delhi.
In October 2017, former Indian ambassador to Tehran Saurabh Kumar said that “we hope that the two sides would conclude a win-win contract, beneficial for both. Farzad B is an important element of [our energy cooperation]. We would, therefore, like to see the contract concluded”.
ONGC Videsh and Indian Oil each own a 40% interest in the Farsi block that holds the Farzad-B field, while Oil India retains 20%.
9.2.2 Automotive corporate news
Largest Iranian automaker Iran Khodro (IKCO) has started production of the Peugeot 301 sedan model, but purportedly without using any parts from the French motor giant behind the car, Groupe PSA, Fars News Agency has reported.
Groupe PSA units Peugeot, Citroen and DS Automobiles, along with fellow French car producer Renault , all invested in the Iranian market following the removal of international sanctions against Tehran triggered by the 2015 nuclear deal—but after US under Donald Trump returned to a sanctions policy against Iran in May 2018 they all gradually pulled out of Iran fearing they would be hit with US secondary penalties.
The newly produced Peugeot 301 model reportedly sources 60% of its parts from Iranian manufacturers, with the percentage expected to increase to 85% in the next few months.
48 IRAN Country Report August 2019 www.intellinews.com