Iran-India row over Farzad B gas field: Tehran says not obliged to give deal after New Delhi threatens to cut crude oil imports

Despite optimism expressed by Prime Minister Narendra Modi and Iranian president Hassan Rouhani in the past on the Farzad B gas field, Tehran has said that it is under no obligation to award the Farzad B gas field to New Delhi, The Times of India reported. The report said that the latest development may be in retaliation to India’s decision to cut crude oil imports from Iran. In May, India had taken the decision in response to the row between New Delhi and Tehran on development of the Farzad B gas field. To break the deadlock over the project, India also offered to invest $11 billion in the development of the gas field. However, the Majlis Energy Commission, the parliamentary committee on energy, said that while India and Iran have jointly conducted the technical surveys on Farzad B, there is no clause which mentions that the contract would ultimately be awarded to India, the report noted. [caption id=“attachment_3875457” align=“alignleft” width=“380”] File image of petroleum minister Dharmendra Pradhan. Reuters[/caption] “Under equal circumstances, this company (ONGC Videsh Ltd) could take priority. However, if there is a difference between the Indian company and other firms in terms of technology, technical knowhow and investment, Iran will, based on the independence and freedom that is has, choose the company which would best serve the country’s national interests,” Asadollah Gharekhani, an Iranian lawmaker was quoted by The Times of India as saying. The continuing deadlock over the development of the gas field in the strategically-located Persian Gulf prompted Iran to rethink its partnership with India and instead tie-up with Russia. Hindustan Times reported that the Iranian petroleum minister Bijan Zanganeh pointed out Russia as a possible partner if the deal falls apart. “The Indian side has failed to make an appropriate offer,” Zanganeh was quoted as saying. However, India took a conciliatory approach and said that it would not mind if the project is not awarded to ONGC Videsh Ltd. Nevertheless, petroleum minister Dharmendra Pradhan urged Iran to take a call over the deal. “Iran is a sovereign country and we expect that since we were with it during its challenging days, Iran should reciprocate. We will only make investment if we see returns,” Financial Express quoted Pradhan as saying.   With inputs from Reuters