OVL offers to invest in Iranian gas field
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.