India Renews Interest in Developing Iranian Gas Field

India has a renewed pitch to get rights to develop ONGC-discovered Farzad-B gas field in the Persian Gulf, reported Press Trust of India.

An Indian delegation visited Tehran last week to discuss development rights to the Farzad-B gas field in the Farsi block as well as on the possibilities of setting up gas-based petrochemical/urea plant in Iran, Press Trust reported Wednesday citing sources.

ONGC Videsh Ltd (OVL), the overseas arm of state-owned ONGC, had in 2008 discovered the Farzad-B gas field in its Farsi exploration block in the Persian Gulf.

Due to threat of sanctions, the Indian company did not signed the contract after submitted a revised Master Development Plan (MDP) for producing 60 per cent of the 21.68 trillion cubic feet of in-place gas reserves in 2010.

Iran, in February 2012, Iran issued a one-month ultimatum to the OVL-led consortium over the development of a gas field. However, for more than two years, it did not carry out the threat of cancelling allocation of the Farsi block to OVL. But last year put the field on the list of blocks it wants to auction in future.

Sources told Press Trust that Iran has however not yet cancelled OVL's exploration license for the Farsi block which gives it the right to develop the discoveries it has made.

OVL is the operator of the Farsi block that lies north of Qatar. It has 40 per cent interest in the 3,500 sq km block.

State refiner Indian Oil Corp (IOC) too has 40 per cent stake, while the remaining 20 per cent is with Oil India Ltd (OIL).

The Farzad-B gas field may hold an estimated 21.68 Tcf of in-place reserves, of which 12.8 Tcf can be recovered, Press Trust said.