OVL of­fers to in­vest in Ira­nian gas field

Iran Daily - - Domestic Economy -

With ne­go­ti­a­tions stuck over pric­ing of nat­u­ral gas, In­dia’s ONGC Videsh Ltd. has of­fered to in­vest $6.2 bil­lion in de­vel­op­ing Iran’s gi­ant Farzad-b gas field in the Per­sian Gulf while leav­ing the mar­ket­ing to Tehran.

OVL had last year made its of­fer to spend $11 bil­lion on de­vel­op­ing Farzad-b field as well as in build­ing the in­fra­struc­ture to ex­port the gas, PTI re­ported.

In­dia is hop­ing for a break­through on the deal dur­ing Iran’s Pres­i­dent Has­san Rouhani’s maiden visit from Fe­bru­ary 15-17.

Ac­cord­ing to OVL, the up­stream part is to cost $6.2 bil­lion while an­other $5 bil­lion will be re­quired to build a liq­ue­fied nat­u­ral gas (LNG) ex­port fa­cil­ity.

In­dia and Iran were ini­tially tar­get­ing con­clud­ing a deal on Farzad-b field de­vel­op­ment by Novem­ber 2016 but later mu­tu­ally agreed to push the time­line to Fe­bru­ary 2017. The dead­line to wrap up ne­go­ti­a­tions later tar­geted for Septem­ber 2017. But with deal stuck over pric­ing of gas, no new dead­lines have been pro­posed. Farzad B was dis­cov­ered by OVL in the Farsi block about 10 years ago. The field has an in-place gas re­serve of 21.7 tcf, of which 12.5 tcf are re­cov­er­able.

New Delhi is keen that the gas from the field comes to In­dia to feed the vast en­ergy needs and so OVL in its $11 bil­lion mas­ter de­vel­op­ment plan pro­posed drilling wells in Per­sian Gulf to pro­duce gas, trans­port it to on­shore via sub-sea pipe­line and build a plant to liq­uefy the gas (LNG) for trans­porta­tion in ships.


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