Iran signed a $1.78 billion contract with the Tehran-based Petropars Group for the development of the Farzad B gas field in the Persian Gulf, according to the Iranian oil ministry's news outlet Shana on Monday.
The Farzad B joint gas field, situated in the Farsi bloc, about 20 kilometers from the Farsi Island on the Iranian-Saudi border is estimated to possess 23 trillion cubic feet of natural gas reserves, 12.8 trillion cubic feet of natural gas and 212 million barrels of gas condensates.
A consortium of three Indian companies -- ONGC, Oil India Limited and Indian Oil Corporation discovered the field in 2008.
However, in 2016 Iran said an agreement plan for development was unlikely due to the price disparity between Iran's demanded gas and India's bid.
Last year, after the National Iranian Oil Company announced that a new operator had been acquired to develop the gas field, replacing India's ONGC, with Tehran declaring that it would develop the field "on its own" and might engage India "appropriately at a later stage."
“The purpose of this buyback contract is to achieve a daily production of 28 million cubic meters of sour gas over five years,” Shana reported.
The gas produced by this field will be processed at the Pars 2 region's onshore facilities in Kangan.
The gas condensate will be separated from the sour gas at the onshore facility before being transported to the South Pars Refineries of Phases 12 and 19 for stabilization.
By Sibel Morrow