India and Iran have agreed to make all-out efforts to conclude the definitive agreement on the Farzad-B gas field by February 2017.
During a high-level official discussion in Tehran on October 25, the two sides took stock of the progress since the April ministerial meetings, an official statement said, adding that discussions progressed on the Heads of Agreement which will eventually lead to a definitive agreement.
ONGC Videsh, the overseas investment arm of ONGC, is preparing a Master Development Plan for the gas field while also working on a gas pricing formula keeping in view the global gas price scenario.
Both sides also agreed to explore possibilities for expanding the footprint of Indian companies through their participation in production and development fields.
OVL, as the operator in the Farsi offshore exploration block in the Persian Gulf, drilled an exploration well in Farzad-B area to discover gas. According to current estimates, Farzad-B has gas Initial in Place of 18.75 TCF. It is partnered by Indian Oil and Oil India Ltd in Farzad-B.