India to make renewed pitch to develop Iran fieldhttps://indianexpress.com/article/business/business-others/india-to-make-renewed-pitch-to-develop-iran-field/

India to make renewed pitch to develop Iran field

Buoyed by Iran's nuclear accord, India will ask the nation for rights to develop ONGC-discovered block

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India being a large importer of crude oil and imports around 80 per cent of its energy requirements, a dip in crude prices will not only positively impact the current account deficit (CAD) but also keep the inflation under control.

With six powerful countries sealing the deal with Iran to curb Iran’s nuclear programme in return for ending sanctions, India is making a renewed pitch for rights to develop 12.8 trillion cubic feet of gas reserves that ONGC Videsh had discovered in 2008.

“We have been in negotiations with Iran over development of Farzad-B gas field. Now that sanctions will ease, we expect Iran to give us the developmental rights,” OVL managing director Narendra K Verma said.

India being a large importer of crude oil and imports around 80 per cent of its energy requirements, a dip in crude prices will not only positively impact the current account deficit (CAD) but also keep the inflation under control.

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In anticipation of the deal and its impact on crude prices the stocks of Indian public sector oil marketing companies witnessed a jump in its share prices. While the shares of Indian Oil Corporation were up by 3.4 per cent on Tuesday, that of HPCL and BPCL rose by 3.3 per cent and 2 per cent, respectively.

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On the other hand the oil exploration companies such as ONGC and Cairn India witnessed a marginal decline in their share prices as a decline in prices impacts their revenue. Their share prices were down by 0.4 and 0.8 per cent, respectively.

Also, the easing of sanctions would mean India can freely buy crude oil from Iran. Sanctions had meant that New Delhi could import no more than 9 million tonnes of oil this fiscal, the same volume it had shipped from Iran in 2013-15.

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