India-Iran: Farzad-B gas field exploration project

India-Iran: Farzad-B gas field exploration project

Part of: GS Prelims and Mains II – India and Iran ties; International Relations

In news:

According to Government of India –

• Iran had gone silent on Chabahar-Zahedan railway project and India didn’t receive any response from Iran since December 2019.
• The ONGC’s foreign arm OVL is also out of the Farzad-B gas field exploration project.
• Policy changes by the Iranian government, Iran’s precarious finances, and the U.S. sanctions situation – are the reasons for dropping India from the projects.

Do you know?

• The MEA has confirmed that India is no longer involved in the Farzad-B gas field project where ONGC had originally signed an agreement for exploration in 2002, investing approximately $100 million thus far.
• India had proposed to invest $1.6 billion in the Chabahar-Zahedan railway line, and approximately $6 billion in the Farzad-B gas field project.