Iran Economy NewsIran says to sign $5 bln gas deal with...

Iran says to sign $5 bln gas deal with foreign firm


Reuters: Iran will soon sign a $5 billion contract with a foreign company to develop its offshore Farzad-B gas field, the Oil Ministry’s website SHANA said on Monday.

TEHRAN Oct 25 (Reuters) – Iran will soon sign a $5 billion contract with a foreign company to develop its offshore Farzad-B gas field, the Oil Ministry’s website SHANA said on Monday.

The report did not name the company, but India’s state-run Oil and Natural Gas Corpration Limited (ONGC) heads a consortium which has exclusive exploration rights for the offshore Farsi block of which the Farzad-B gas field is part.

“Currently negotiation for the investment and development of this oil field in the Persian Gulf is at its final stage,” Mahmoud Zirakchianzadeh, head of the Offshore Oil Co of Iran, was quoted as saying by SHANA.

Zirakchianzadeh said an initial agreement on developing the gas field on a buyback basis had already been signed with the foreign company which has already secured all the necessary permits.

The announcement comes after many Western energy companies have turned away from Iran due to sanctions imposed to pressure Tehran over its nuclear programme.

Iran has often said it has no shortage of willing international partners outside Europe and the United States which have imposed the toughest sanctions.

SHANA reported on Sunday that Venezuela was set to invest $780 million in the development of phase 12 of Iran’s giant South Pars gas field.

ONGC and Indian Oil Corp each own a 40 percent interest in the Farsi block, and Oil India Ltd holds the remainder.

Zirakchianzadeh said the field’s in-place gas reserves have been estimated at 21.7 trillion cubic feet (tcf) of which 12.5 tcf are recoverable. Production is projected at 1.1 cu. ft. per day in the first phase of the field’s development.

Iran is the world’s fifth largest oil exporter and sits on the world’s second largest natural gas reserves after Russia, but sanctions have slowed its development in the oil and gas sector.

The Islamic Republic says it needs around $25 billion a year in oil and gas industry investment to meet its target development goal in oil and gas sectors.

Latest news

Iran’s New Generation Seeks Nothing but Regime Change

In a silly and desperate statement, the Iranian regime’s foreign minister Hossein Amir-Abdollahian claimed that nothing special is going...

Iran’s Youths Broke the Spell of Fear

One of the main characteristics of the recent protests in Iran is the courage and fearlessness of the people,...

Iran Is on the Brink of a Revolution

The wall of fear has been broken. In many cities across Iran, women are taking to the streets, leading...

Iran’s Regime Claims To Fill Global Energy Gap Despite Crippled Petroleum Sector

In recent weeks, the Iranian regime’s officials have been constantly exaggerating their huge capacity in oil and gas reserves...

What Is Happening in Iran?

Following the brutal killing of Masha Amini, the Iranian people have once again united to fight and defeat the...

Iran Regime’s Ministry of Culture’s Decision To Eliminate Children’s Intellectual Centers

With the so-called ‘Cultural Revolution’ which took place between 1980 and 1983, the Iranian regime tried to purge the...

Must read

Iranian-American who recently visited Iran missing

Reuters: A dual U.S. and Iranian citizen who visited...

Thousands of Iranians to Rally in Brussels to Demand Removal of Terror Tag

Iran Focus: Thousands of Iranians will be heading to...

You might also likeRELATED
Recommended to you