Despite India willing to invest as much as $11 billion to develop Iran’s Farzad B gas field, the war of words between the two countries has only intensified with Tehran now saying that it is under no obligation to award the contract to India.
Iran has also made light of India’s threat to import less crude oil from it, with its Parliament Energy Commission chief saying Iran could find other customers for its oil.
In May, Iran signed a basic agreement with Russia’s Gazprom for development of the gas field which was discovered by a consortium of Indian state-run companies. This was seen as a retaliation against what Iran saw as a threat from India to cut purchase of Iranian oil if the commercial contract for Farzad B didn’t happen.
India officially said last month that it wants Tehran to reciprocate the faith shown by New Delhi in it as reflected in India’s decision to buy substantial crude from Iran even when it faced international sanctions.
This was followed by a fresh offer earlier this month to invest $11 billion for development of the gas field. Read More…
Credit By: ET
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