From UPSC perspective, the following things are important :
Prelims level : Farzad B Gas Field
Mains level : Not Much
Iran gave the Farzad B gas field to a domestic gas producer in a setback move to India.
Farzad B Gas Field
- Farzad-B is an off-shore natural gas field 20 kilometres off Farsi Island in Iran.
- The gas field was discovered in 2008 by a consortium of three Indian companies, led by the state-owned ONGC Videsh with a 40% stake; the other companies were Indian Oil Corporation (40%) and Oil India (20%).
Deal soured after US sanctions
- Negotiations between the consortium and the National Iranian Oil Company (NIOC) to develop the gas field stalled due to secondary sanctions against Iran by the US and the European Union in the early 2010s.
- Following the lifting of sanctions after the Joint Comprehensive Plan of Action was signed in July 2015 the consortium was close to an agreement to invest $US5 billion to develop the gas field.
- After the United States withdrawal from the JCPOA in May 2018, and the reinstatement of U.S. sanctions against Iran, the negotiations between the consortium and NIOC broke down.
Consider the question “Balancing the contrasts has been the basis of India’s relations with Iran. Comment.”