Iran has given 1 month ultimatum to an Indian consortium over the development of a gas field whose delay by India has been attributed to western pressure.

Tension between Iran and the West rose last month when Washington and the European Union imposed the toughest sanctions yet on Iran in a bid to curb its nuclear program.

Oil official said that Iran has given a one-month ultimatum to India over its decision on participating in the development of Farzad B gas field. Possibly foreign pressures played a role in influencing Indian's delays to develop the field.

Iran said that the field's in place gas reserves have been estimated at 21.7 trillion cubic feet of which 12.5 trillion cubic feet are recoverable.

Iran was in talks with state run Oil and Natural Gas Corporation Limited for about three years. In October 2010, Iran said that it would soon sign USD 5 billion contract with a foreign company to develop its offshore Farzad B gas field without naming the company.

The EU's ban on Iranian oil came after US President Mr Barack Obama signed new sanctions into law on New Year's Eve that would block any institution dealing with Iran's central bank from the US financial system. The measures are aimed at shutting off the second biggest OPEC oil exporters' sales of crude.

However, India which relies on Iran for about 12% of its oil needs or around 350,000 barrels per day to 400,000 barrels per day said it would not cut its oil imports from Iran. If fully implemented, the measures will make it impossible for countries to buy Iranian oil.

(Sourced from economictimes.indiatimes.com)