Iran's oil minister scraps oil and gas connections to India

[ChinaToday]

Iran's oil minister scraps oil and gas connections to India

Date: Saturday, September 21, 2013
Source: Financial Express


The new government in Iran has withdrawn all crucial oil and gas concessions that had been promised to India by its predecessor.

Oil minister Bijan N Zangeneh, it is learnt, told Indian ambassador D P Srivastava on September 1 that Tehran would not accept the entire payment for crude oil imported by India in rupees as agreed in July.

Iran has since stopped issuing invoices in rupees for the full quantity of crude and reverted to the old system of accepting only 45 per cent of the payment in rupees.

Zangeneh, it is learnt, told Srivastava that the new Central Bank of Iran governor had complained of difficulties in transferring money in euros from India to other countries to pay for food and medicines.

Iran, he said, needed help in resolving the problem with getting 55 per cent payment in euros, which was being routed through Turkey's Halkbank, and ended in February. Zangeneh wants India to renegotiate the terms and revert to majority euro payment.

Zangeneh also told the Indian envoy that the previous regime's offer to sign a production sharing contract (PSC) for the Farzad B offshore gas field was “not acceptable”, as he could convince neither the government nor parliament to approve the PSC.

Under PSC, an operator gets a share of production or revenue in proportion to its investment. In a service contract, the Indian consortium would get a flat 15 per cent return on the investment for developing the field.

India had started work on floating a new government company to develop the field and keep out the existing contractor consortium of ONGC Videsh Ltd, Indian Oil Corp and Oil India Ltd to shield them from US sanctions.

The new administration has also reversed the offer of natural gas at a heavily discounted price of 84 cents per million BTUs for setting up a urea plant through Indian investment at Assaluyeh or Chahbahar.

Zangeneh now wants a product-linked gas price where Iran would calculate the price related to the international price of urea after taking into account investment, operation cost and expected returns.


IranOilGas Network News: Iran's oil minister scraps oil and gas connections to India

 

[Mumbai Monitor]

This will be yet another blow to Indias already sinking foreign currency reserves and may force the sale of more national gold.

 

[DeathInvader]

or source for oil somewhere else!

 

[[Bregs]]

This is old news n has been discussed till death here

 

[idune]

Growing indication india has been cut off from Central Asian energy sources and degraded its capability to get oil and gas from Iran.
Expect Indians act against Iran interest in coming days and more knocking on Saudi door.

 

[Cyberian]

One almost gets the sense that India is slowly being contained by an unseen and superior force. I wonder what it could be?

 

[NALANDA]

It says payment will be 45 % in INR and not 100%. Ain't this good. What is the payment terms with Paksitan.

Asking for fare commercial terms is fair. It doesn't mean anything.

 

[idune]

What is the payment terms with Paksitan.

Asking for fare commercial terms is fair. It doesn't mean anything.

"Payment term with Pakistan" is not matter for this issue or discussion. Stop living off of otherthers and stick to your own ability.
On the topic, it is more than commercial relation:

New Iranian President did not provide one-on-One time to visiting Indian VP.
Iran seized Indian oil tanker for environmental violation and in retaliation india seized Iranian cargo ship.
Iran scrapped oil and gas deal with which india tried to take advantage from Iran in a bad situation.

That says lot about indian "friendly" character and Iranians rightly sized up indian intentions.

 

[SOHEIL]

This is old news n has been discussed till death here

 

[HongWu]

Evil Indians tried to backstab Iran and now they pay the price!

 

[saurav]

Its amusing to see how some people here wish the India-Iran relations to be. Dont bother folks. India- and Iran have had good relations much before your countries were born and it will continue to be same long after your countries cease to exist.

 

[NALANDA]

"Payment term with Pakistan" is not matter for this issue or discussion. Stop living off of otherthers and stick to your own ability.
On the topic, it is more than commercial relation:

New Iranian President did not provide one-on-One time to visiting Indian VP.
Iran seized Indian oil tanker for environmental violation and in retaliation india seized Iranian cargo ship.
Iran scrapped oil and gas deal with which india tried to take advantage from Iran in a bad situation.

That says lot about indian "friendly" character and Iranians rightly sized up indian intentions.

Payment terms is relevant dude. If India is still being allowed 45% payment in INR , isn't it awesome. India wanted 100% INR payment and Iran says 45%. Iran ALREDAY has huge reserve of INR and they do not know what to do with it. They too need foreign currency.

New Iranian President is new and busy for Indian VP which is not an important position even in India.

Indian tanker is back and the confusion and misunderstanding is over. India did not captuer any Iranian vessel.

Other OIL deals are still on and Indian engagement in Iran is going to scale up big time now. Iran is one country we Indians like a lot.

 

[SOHEIL]

Iran is one country we Indians like a lot.

Really !?

 

[Sugarcane]

It says payment will be 45 % in INR and not 100%. Ain't this good. What is the payment terms with Paksitan.

Asking for fare commercial terms is fair. It doesn't mean anything.

Even 45% is too much what else you want?

 

[NALANDA]

Really !?

Yes, could be because of ancient link, or we appreciate that you guys have been defying USA for long or because you are Shia country. You do not prmote Terrorism like SAUDI do.

We just wish you were more fiendly with Israel.