- The deal could have significant effects on India’s energy needs, as it will allow imports of oil and natural gas from Iran.
- Analysts point that oil prices would drop further as a permanent agreement would be reached with Iran, as Iran would then increase its oil production.
- A fall in global oil prices would be good news for India. Why?
A $1/barrel fall in international crude oil prices is likely to reduce India’s net import bill by $0.9 billion a year.
- The Farzad-B gas field project – Discovered by OVL in 2008, might receive a fillip because India could not pursue the project aggressively until now, due to US sanctions against Iran.
- Gas Pipeline – Between India and Iran.
- Chabahar Port Route – The peace agreement will lead Indian govt. to push for completion of Chabahar port route to Afghanistan, a gateway to Central Asia.