India is set to offer a $3-4 billion development plan for the Farzad B gas field to Iran next week after Tehran reduced the scope of the project, two sources familiar with the matter said.
Relations between the two countries, which have long held deep trade ties, were strained last year after Iran sought other investors for the field and media reports suggested Tehran would award it to Russia’s Gazprom.
In retaliation, India directed its state refiners to cut oil imports from Iran.
At a meeting in New Delhi in February, Iran reduced the scope of the development plan for the Farzad B field and asked India to submit a revised proposal, said the two sources, who did not wish to be identified due to the sensitivity of the matter.