Iran has awarded state-owned Petropars a $1.78bn contract to develop its Farzad B gas field, which straddles the border with Saudi Arabia. Indian state firms, including ONGC Videsh, had long sought to develop the field after initially discovering it under an exploration license awarded in 2002 (MEES, 4 November 2002). However, the return of US sanctions in 2018 has blocked foreign firms from investing in Iran’s oil and gas sector, forcing Iran to rely on domestic firms to fill the gap (MEES, 21 August 2020).

Iran estimates that Farzad B has approximately 23tcf of gas in place. While the ultimately-recoverable figure will come down as further appraisal work is undertaken, Farzad B is a substantial asset. (CONTINUED - 705 WORDS)