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Frazad B deal: Did we handle it right?
Jul 06: The fact that Iran has just signed up with the Chinese super major, CNPC -- along with Total of France -- for a gigantic South Paras Phase-11 offshore development sends a wrong signal to India.
8The 20-year contract is the first signed by Iran since the lifting of sanctions in January 2016. Phase-11 is the last of the gas reservoir phases at South Pars yet to be developed. The project will have a production capacity of 2 Bcf/d, or 400,000 boe/d including condensate.
8This announcement comes after Iran, in a snub at India, signed an initial pack with Russia's Gazprom for developing ONGC-discovered gas field of Farzad B while still keeping the door open for awarding it to the Indian firm.
8One of the big mistakes made by India was to try and pressurize Iran to award the block by cutting down on oil offtake. This was a miscalculation as Iranians -- who have lived under years of Amercian sacntions -- react adversely to any kind of pressure.
8India was expecting too much when it sought reciprocation in kind for supporting Iran -- by going to great lengths to buy its crude under a semi-barter system -- during the time of US sanctions.
8The Iranians have never been known for such reciprocation.
8A careful perusal of how Iran reneged on an LNG supply deal signed in Tehran by then petroleum minister Mani Shankar Aiyer with his Iranian counterpart would have given today's policy makers an insight into how the Iranian mind works.
8If CNPC could enter into a deal with Iran -- for the Chinese too had supported Iran during its times of crisis --  there was no reason why OVL couldn't have done the same. What was needed was subtle lobbying and perhaps a partnering with a company like Gazprom, which has clout with the Iranians, to dilute the risk instead of trying to go it alone.
8This is one deal that wasn't handled right by New Delhi
8But is there still time to retrieve the deal?
8Perhaps not, after Prime Minister's visit to Israel and the Iran's supreme leader Ayatollah Ali Khamenei's recent assertion on Kashmir
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