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India has given a four-month ultimatum to Iran to offer a discovered oil field if it wanted to export 5 million tonnes of liquefied natural gas to New Delhi.
"We have extended by four months the deadline for signing the sale and purchase agreement with Iran for LNG imports but will not hesitate to scrap the agreement if Tehran does not provide a worthwhile discovered oil field," a senior official of the oil ministry said.
Iran had in September last offered three producing oil oilfields, prime among which was the Parsi Reservoir with a daily output of 100,000 barrels. The others were Sarvak in Northern Azadegan block with a daily output of 46,000 barrels and Cheshmeh Khosh with 31,000 barrels. Besides, it offered semi-discovered blocks of Abadan Plain and Saveh-Gartnsar.
Later, it also offered 40 per cent equity in the sprawling oilfield Azadegan South to get New Delhi moving on the proposed LNG project.
"But Iran handed over South Azadegan field to Japan. The earlier offers of discovered and semi-discovered blocks required large investments or were low in yield," they said.
India will allow the memorandum of understanding, signed last year in LNG-for-oil-field deal, to lapse if Tehran did not offer a discovered field.
"We need a discovered field that would yield sufficient return to compensate the high LNG cost," sources said.