ONGC Videsh Ltd (OVL), the overseas investment arm of Indian explorer Oil and Natural Gas Corp, is preparing a master plan for development of Farzad-B, while also working on a pricing formula, the Indian government said in a statement on Wednesday, Reuters reported.
It added Iran and India are seeking to wrap up the gas field deal by March.
Indian companies have been in talks with Tehran since 2009 for developing the Farzad B gas field, estimated to hold 21.68 trillion cubic feet (tcf) of gas in place, of which 12.8 tcf is recoverable.
With 137.6 billion barrels of proven reserves, Iran has the world's fourth largest crude deposits. In terms of gas reserves, it is second only to Russia, with reserves estimated at over 33 trillion cubic meters (tcm).