Iran should reciprocate on gas field award: Dharmendra Pradhan

India wants Iran to award rights of the Farzad- B gas field to its discoverer, Oil and Natural Gas Corporation, and reciprocate the trust shown by India during the phase.

Published: 16th June 2017 12:38 AM  |   Last Updated: 16th June 2017 06:44 AM   |  A+A-

Oil Minister Dharmendra Pradhan. Reuters

By Express News Service

NEW DELHI: India wants Iran to award rights of the Farzad- B gas field to its discoverer, Oil and Natural Gas Corporation, and reciprocate the trust shown by India during the phase when it was boycotted by western nations.

“We stood by them in difficult times and bought substantial amount of crude oil. We also returned every penny when the banking channels reopened,” said oil and gas minister Dharmendra Pradhan. He added that relationship with Iran is not based on a single commodity or a single transaction.

However, with Iran’s non-commitment to award of rights to ONGC Videsh, the overseas arm of ONGC, develop the 12.5 trillion cubic feet gas field discovered by OVL, India decided to cut oil imports from Iran by a fifth in 2017-18.

Iran had shown its displeasure with India, after a $ 5.5 billion master development plan was submitted by OVL. Iran signed an initial pact with Russia’s Gazprom for developing Farzad-B gas field.

Iran is peeved since it will have to reimburse all of the money that is invested, together with a fixed rate of return. The demand from Iran is that the investment should be lowered by OVL and it should commit to buying gas at a price fixed by it.

While OVL has said it will take up development only if the terms are economical and cannot absorb any cost and the price of gas should be comparable to rates in current market.

Stay up to date on all the latest Business news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.