sanctions have stalled talks between India and Iran for the development rights
of Farzad B gas field since sanctions are a huge execution risk making it hard
to obtain finance and also the oilfield services companies, people familiar
with the matter said.
giant Total cancelled a $5 billion contract to develop the massive South Pars
offshore gas field which indicates the wariness of foreign companies in participating in Iranís exploration sector
The development of Farzad B has been delayed for
years due to US sanctions as well as sluggish decision making by Iranian authorities.
After staying away from the Iranian field during the previous sanctions years,
the Indian consortium revived its efforts to obtain a licence to develop the
field in 2016.
game between India and Iran ended up in not reaching a deal; Iran accused India
of inflexibility and India accused Iran of changing goal posts.
imports almost 10% of its crude oil requirements from Iran and is in
negotiations with the US for a sanctions waiver by offering to partly cut its
purchases from the republic. Officials of the two countries are slated to meet
next month to decide on this.
Indian officials will likely project the
technical limitations of their refineries as
well as increased purchases of the US crude oil lately by the Indian refiners
to seek the exemption, people familiar with the matter said.
India, meanwhile, continues to import Iranian
oil that comes with a longer credit period and lower freight charges. Iran has
offered its carriers and insurance for cargoes turned away by other shippers
and insurers due to the sanctions.
Some US curbs against Iran took effect earlier
this month and those related to the petroleum sector
would be effective from November, which is when their impact will become
clearer to Indian oil companies.