New Delhi, Dec 7 (IANS): Iran has agreed to award a $3 billion contract for developing the Farzad-B gas field in the Persian Gulf to a consortium of Indian companies led by state-run Oil and Natural Gas Corp (ONGC), Teheran-based Mehr news agency reported.

Mehr quoted the director of the Falat Ghare oil company, Saeed Hafezi, as saying that the easing of sanctions after Iran's nuclear deal with world powers signified that the consortium could resume field development, the first phase of which aimed to produce one billion cubic feet of natural gas per day.

The Farzad-B field, successfully discovered by the Indian explorer's overseas arm ONGC Videsh Ltd (OVL), is estimated to hold initial in-place gas reserves of 12.5 trillion cubic feet.

ONGC officials here, contacted by IANS on Monday, said they were not aware of the latest developments but that a proposal submitted by the consortium had cited around $3 billion as cost for the first phase of developing the Farzad-B field.

The project was discussed during Iranian foreign minister Javed Zarif's meeting here, in August, with External Affairs Minister Sushma Swaraj.