<div>Iran has said the development rights for its Farzad-B gas field will be available to Indian companies after concerns in New Delhi that cash-rich European firms could clinch the contract.</div><div> </div><div>A consortium headed by ONGC Videsh, the overseas investment arm of Oil and Natural Gas Corp, in 2008 discovered the Farzad-B gas field in the Farsi offshore block.</div><div> </div><div>The consortium, which also include Oil India and Indian Oil Corp, has been seeking development rights for the field.</div><div> </div><div>An Indian delegation that went to Iran in the last week of July was told Tehran was working out a new production sharing contract, said B. Roy, head of business development at Oil India Ltd..</div><div> </div><div>"The outlook is upbeat," he said.</div><div> </div><div>Iran has asked Indian firms to submit a development plan for the Farzad-B gas field, Roy said, adding Tehran had offered a draft contract, known as the Iran Petroleum Contract (IPC), to Indian companies.</div><div> </div><div>The new contract for the block is a mix of production sharing and service contract, he said.</div><div> </div><div>The delegation also renewed talks over the purchase of Iranian liquefied natural gas (LNG) once sanctions against the country are lifted and Tehran sets up a liquefaction facility, Indian Oil Minister Dharmendra Pradhan told lawmakers on Wednesday.</div><div> </div><div>India signed a deal with Iran in 2005 to buy 5 million tonnes a year of LNG but the contract was never implemented.</div><div> </div><div>Separately, Oil India said the first delivery of LNG cargo from Mozambique's offshore Area 1 Block in the Rovuma basis was expected in the first quarter of 2020.</div><div> </div><div>"There is a delay of 7-8 months in LNG supplies from Mozambique, as their parliament only recently passed the law supporting development of (an) LNG hub," Roy said.</div><div> </div><div>He said Mozambique's Area 1-operator Anadarko Petroleum had signed initial deals with Japan, South Korea and Singapore-based entities to sell 60 percent of the gas to be produced from the phase 1 of the project.</div><div> </div><div>Reuters last month reported that Anadarko was in talks with Japanese joint-venture vehicle Jera, set to become the world's biggest buyer of LNG, to sell long-term supply from its Mozambique export scheme.</div><div> </div><div>Roy said banks had committed $16 billion for the project that would cost about $23 billion.</div><div> </div><div>"The financial closure for the project is expected by the end of this year or early next year," he said.</div><div> </div><div>The project also include setting up two LNG trains of an annual capacity of 6 million tonnes each.</div><div> </div><div>(Reuters)</div>
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