Azernews.Az

By Abdul Kerimkhanov

India and Iran have rather warm relations based on both religious and cultural commonalities and economic cooperation.

The economic and military power of any country is based on energy, and India intends to ensure its energy security with the help of Iran. This is evidenced by the rapid restoration of Indo-Iranian relations, which is happening now.

The head of the National Iranian Oil Company (NIOC) said that Iran and India are still discussing the development of the Farzad-B gas field.

"The development of Farzad-B was and will be the main priority for the NIOC, and negotiations with India are still ongoing," said Masoud Karbasian on February 13.

The Farzad-B field, with an estimated 12.8 trillion cubic feet of gas, was discovered by a consortium of three Indian companies: ONGC, "Oil India Limited" and "Indian Oil Corporation" in 2008.

The Indians were to develop the field after its exploration, but they ceased operations after the West strengthened sanctions against Iran in 2012.

With the lifting of sanctions, India once again called for the development of Farzad-B by ‘‘ONGC Videsh’’, which is a foreign investment unit of the country's largest energy exploration company.

According to the agreement, the Indians had to first submit a technical plan, and then a financial proposal for the development of this field, but Iran did not agree with the financial proposals of the Indian side.

India has become one of the most important foreign economic partners of Iran, developing ties in various fields, including oil. It was Iran that helped India create the first modern oil refinery in Madras.

At the same time, India came out on top among developing countries in Iranian imports and in third place in exports. India also excelled in the import of Iranian oil and petroleum products.

For Iran and India, activities in the development of transport communications are important. The use of Iranian transit for India allows unhindered access to foreign markets.

Iran and India, together with Russia, signed an agreement in St. Petersburg on the creation of a project for the North-South international transport corridor in September 2000.

The North-South project as an important Eurasian geopolitical project will allow Iran and India to more actively participate in international trade.

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Abdul Kerimkhanov is AzerNews’ staff journalist, follow him on Twitter: @AbdulKerim94

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