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AsiaElec GAS-FIRED GENERATION AsiaElec
Indian developers lose out in Iran
THE Iranian government has decided to pro- Farzad-B is estimated to hold around 23
ceed with the development of the shallow-water trillion cubic feet (651.36bn cubic metres) of
Farzad-B natural gas and condensate field with- gas in place, with 60% of that considered to be
out India’s participation. recoverable. The field also contains around 5,000
ONGC Videsh Ltd (OVL), the overseas arm barrels of condensate for every billion cubic feet
of Oil and Natural Gas Corp. (ONGC), discov- (28.32mn cubic metres) of gas.
ered the field in 2008 in partnership with Indian “The deal was signed on Monday, May 17, in
Oil Corp. (IOC) and Oil India Ltd (OIL). How- a ceremony held in the presence of Iranian Min-
ever, after more than a decade of failed negoti- ister of Petroleum Bijan Zangeneh in Tehran,”
ations between the Indian consortium and the Shana reported.
government, Tehran opted to award the develop- OVL had operated the field, which is located
ment contract to state-owned National Iranian within the 3,500-square km Farsi block, with a
Oil Co.’s (NIOC) subsidiary Petropars. 40% interest, while IOC owned 40% and OIL
“The [NIOC] has signed a contract worth controlled the remaining 20%. The block lies in
$1.78bn with Petropars Group for the develop- water depths of 20-90 metres in the Persian Gulf.
ment of Farzad B gas field in the Persian Gulf,” After the exploration phase of the Farsi con-
Indian newswire PTI quoted the Iranian Oil tract expired in 2009, the Iranian government’s
Ministry’s official news service Shana as report- negotiations with the Indian developers floun-
ing on May 17. dered, with difficult terms and international
The contract has set a production target of sanctions repeatedly cited as major stumbling
28mn cubic metres per day of sour gas over five blocks. The Indian consortium has reportedly
years, with output to be sent to the South Pars gas invested around $400mn in the block.
field’s onshore gas plants.
P8 www. NEWSBASE .com Week 20 19•May•2021
