India gets only 10% in Iranآ’s Yadavaran oilfield

Vol 9, PW 5 (16 Jun 05) News in Brief

India will get only 10% equity in Irans onland Yadavaran oilfield under its 25-year import gas sales agreement for 5m t/y LNG signed in Tehran on 13th June in the presence of oil minister Mani Shankar Aiyar.

Iran earlier offered India 20% in Yadavaran and 100% of the Jufair oilfield in return for a long-term LNG contract. But Indias proposed stake in Yadavaran was halved following resistance from the fields Chinese operator.

Yet, we learn India is set to get 100% in the (much smaller) Jufair field. Iranian LNG is scheduled to land in India after 2009 at Dahej and Kochi.

Another setback is Irans refusal to grant Indias request for an additional 2.5m t/y LNG because it wants a higher price. The 5m t/y LNG from Iran will cost India a maximum $3.5 per mmbtu including shipping, linked to a ceiling Brent price of $31 per barrel.

The fixed component in the price: $1.2 per mmbtu is subject to 2% escalation from the third year onwards.