India is seen to also lose the deal in the Iranian gas field project following its fall from a key rail project in the country.
On Thursday, India's Ministry of External Affairs said that Tehran would develop the Farzad-B gas field in the Persian Gulf and India might only be engaged at a later stage.
Previously, managing director of National Iranian Oil Company (NIOC) Masoud Karbasian said that India’s Oil and Natural Gas Corporation Limited (ONGC) was being replaced by a new operator.
India’s participation in the Iranian projects is disrupted by the US sanctions on Iran, which was reinstated in 2018 following the ease in 2015.
Before the replacement, ONGC along with Oil India Limited and Indian Oil Corporation discovered the gas field in 2008 but the development by the Indian side was abruptly stopped in 2012 due to the first wave of US sanctions.
India showed a willingness to return to the project after the sanctions easing in 2015, and both India and Iran had agreed on the major details of the project. But things again fell apart due to the reinstatement of sanctions in May 2018. Sources familiar with the issue said that India was further discouraged.
Later on, India’s USD5.5 billion financial plan was deemed to be unsatisfying for NIOC and the new plan submitted in August 2019 was buried by Iran’s decision to get another operator for the project.
The report on India being dropped from the gas field project followed the earlier reports claiming that Iran had also dumped India from a 628-kilometer (390 miles) railway line project in the country.
This report, however, was dismissed by India's External Affairs Ministry, retorting that Theran would nominate an authorized entity to finalize outstanding technical and financial issues and the issue is still awaited.
An official from Iran's Ports and Maritime Organization also denied the reports. However, he said Iran has not inked any deal with India for the construction of the Chabahar-Zahedan railroad.
"Iran has only signed two agreements with India for investment in Chabahar. One is related to port's machinery and equipment, and the second is related to India's investment to the tune of USD150m," said Farhad Montaser on Wednesday.
Sources said that India’s IRCON and Iran’s CDTIC had failed to reach an agreement.
