With a hope to expand energy ties, Oil Minister Dharmendra Pradhan will be visiting Tehran on April 9-10. This will be the first visit by an Indian minister to Iran since Western sanctions were lifted from the Persian Gulf country. During his visit, Pradhan would push for signing of a definite agreement to develop the prolific Farzad-B gas project by an Indian consortium led by ONGC Videsh (OVL).
Further his agenda will include buying additional crude oil and settling pending payments for earlier oil purchases from Iran. The issue of India's pending payments for oil imported from Iran for three years during the period of sanctions will also figure in Pradhan's deliberations. The Central Bank of Iran is currently negotiating with India and Pradhan will meet bank governor Valiollah Seif to discuss the issue.
A consortium led by India's Oil & Natural Gas Corporation discovered Farzad-B in 2008 but was unable to proceed due to the sanctions. Last year, ONGC submitted a $3 billion proposal to Tehran for development of the field. The Farzad-B field in the offshore Farsi block is estimated to hold 12.8 trillion cubic feet of gas. Last month, Pradhan had said he was 'hopeful' that a deal on Farzad-B could be concluded during his visit to Tehran.
Pradhan will also meet Iranian minister of industry, mines and trade Mohammad Reza Nematzadeh and the secretary of the council of Iran's free trade, industrial and special economic zones Akbar Torkan to discuss setting up complexes in the SEZ of Chabahar port.