India is expected to provide a bid of up to $4bn for Iran’s Farzad B gas field.
This move follows Iran’s decision to reduce the project’s scope in February.
Last year, Iran began scouting for other investors for the field and various media reports indicated that it intended to award the contract to Russia’s state-owned Gazprom. In response, India decided to cut oil imports from Iran.
It is reported that the two countries have since been working to resolve differing opinions over the rights to the project.
An official offer is yet to be made, but India’s bid is said to be between $3bn and $4bn.
Gas processing and the development of downstream projects will not be included in the project.
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By GlobalDataReuters reported that ONGC Videsh stated: “As the negotiations are still ongoing, we would not like to comment at this stage.”
The Farzad B gas field holds 16 trillion cubic feet (tcf) of recoverable reserves.
India plans to discuss the revised proposal during Iranian oil minister Bijan Zanganeh’s visit to New Delhi next week.
