Floated by Iran’s historic nuclear accord with world powers to end sanctions, India will ask Iran for rights to create ONGC discovered Farzad-B gas fields in the Persian Gulf even as it prepares to make the payment $6.5 billion huge in past oil dues. Indian firms have so far shied far from investing in Iran for the apprehension of being sanctioned by the US and Europe. The same was dissuading New Delhi from guaranteeing rights to invest almost $7 billion in the biggest gas discovery ever constructed by an Indian firm abroad. However, with Iran and six world powers sealing an agreement to control the Islamic Republic’s nuclear program consequently for consummation sanctions, India is making a restored pitching for rights to add up to 12.8 Trillion cubic feet of gas reserves that ONGC Videsh Ltd had found in early 2008.

India Iran Oil Deal

We have been in negotiations with Iran over advancement of Farzad-B gas field. Since sanctions will ease, we anticipate that Iran will give us the developmental rights OVL Managing Director Narendra K Verma told in New Delhi.

India & Iran- Strategic Partners

Also, the easing of sanctions would mean India can uninhibitedly purchase raw petroleum from Iran. Sanctions had implied that New Delhi could import close to 9 million tons of crude oil in this fiscal- the same volume ONGC had shipped from Iran in the period of 2013-15. We have just known about the system however we have not seen any details of when the sanctions will be lifted. We are anticipating more details to choose unrefined purchases a top authority with a refiner which buys Iranian oil said.

An oil ministry authority said lifting of sanctions would also mean oil refiners will need to pay 6.5 billion USD dollars in past dues on buying of Iranian crude oil. Since last February 2013 Indian refiners’ companies like Essar Oil and Mangalore Refinery and Petrochemicals (MRPL) have been paying in rupees to UCO Bank 45 for each penny of their payment due on purchase of crude petroleum from Iran. The outstanding payment procedures have been arranged, pending conclusion of a payment procedure.

They had last year paid almost $3 billion in six installments through a restricted payment channel taking after start of nuclear talks between the West and Iran. The total outstanding due has since moved to about $6.5 billion. Of this, Essar Oil owes about $3.5 billion and MRPL $2.5 billion. The rest $500 million is to be paid by Indian Oil Corporation (IOC). The concerned authorities said the state legislature expects that payment channels to open soon and Iran making an interest for clearing of past dues.

Iran-UN Nuclear Agreement- Sanction will be lifted Soon 

The historic nuclear agreement struck on the last Tuesday sanctions imposed by the mighty US, European Union and maximum countries of United Nations would be lifted in kind for Iran concurring long haul curbs on a nuclear project. On the off chance that endorsed by the US Congress, it would empower the holder of the world’s fourth-biggest rough reserves to increase energy exports with the easing of international sanctions on exports consequently for curbs on its nuclear system.

The authority trusted Iran won’t toughen its stand on rights of Farzad-B gas field suspecting it can get contending offers from elsewhere on the world including from neighbor China. ONGC Videsh Pvt. Ltd, the overseas arm of the state run Oil and Natural Gas Corporation had in 2008 discovered the Farzad-B gas field in its Farsi exploration block in the Persian Gulf.

In August/September 2010, it submitted a revised Master Development Plan (MDP) for delivering 60 for each penny of the 21.68 trillion cubic feet of set up gas reserves yet had not signed the agreement because of risk of being sanctioned by the US which is against any organization investing more than $20 million in Iran’s energy sector in any 12 month period. Iran, in February 2012, issued a one-month final offer to the OVL-drove consortium over the advancement of a gas field.

For over two years, it didn’t complete the danger of scratching off distribution of the Farsi block to OVL. To pressure India passively to act, Tehran last year put the field on the list of blocks to be sold in future, sources said, including it has however not yet crossed out OVL’s exploration license for the Farsi block which gives it the privilege to add to the discoveries it has made.

OVL is the administrator of the Farsi block that lies in the north of Qatar. It has 40 for each penny investment in the 3,500 sq km block of oil. State refiner Indian Oil Corp (IOC) too has 40 for each penny stake, and the remaining 20 for each penny is with Oil India (OIL).

The Farzad-B gas field may hold an estimated 21.68 Tcf of set up reserves, of which 12.8 Tcf can be recouped. The reserves in Farzad B are almost thrice the largest gas fields in Indian ground. Since last July 2011, India has been making payment in euros for 55 for each penny of its purchases of Iranian oil through Ankara-based Halkbank. The remaining 45 for every penny was transmitted in rupees through UCO Bank.

Be that as it may, in February 2013, while the US blocked all crude oil selling payment channels, Indian refiners paid Iran just the 45 for every penny of oil bill in rupees through UCO Bank. The remaining 55 for every penny in remote coin has been held up with the refiners for absence of an endorsed payment channel. In June-July 2014, refiners cleared 1.65 billion USD dollars of past dues in three equivalent installments. Another $1.3 billion was paid in October/November in three installments.