India set to lose Farzad-B gas field; Iran to prefer domestic companies over foreign firms
PTI Last Updated: Oct 18, 2020, 01:48 PM IST
New Delhi: India has all but lost the ONGC Videsh Ltd-discovered Farzad-B gas field in the Persian Gulf after Iran decided to prefer domestic companies over foreign firms for development of the field, sources said.
ONGC Videsh Ltd (OVL), the overseas investment arm of state-owned Oil and Natural Gas Corp (ONGC), had in 2008 discovered a giant gas field in the Farsi offshore exploration block.
OVL and its partners had offered to invest up to USD 11 billion for development of the discovery, which was later named Farzad-B.
Sources said unconfirmed information suggests that Iran has identified a local firm for the development of the field, but OVL has not yet given up hopes and continues to chase Iranian authorities for the contract.
The 3,500 square kilometre Farsi block sits in water depth of 20-90 metres on the Iranian side of the Persian Gulf.
OVL, with 40 per cent operatorship interest, signed the Exploration Service Contract (ESC) for the block on December 25, 2002. Other partners included Indian Oil Corp (IOC) with 40 per cent stake and Oil India Ltd (OIL) holding the remaining 20 per cent stake.
The Indian consortium has so far invested around USD 400 million in the block.
Read more at:https://economictimes.indiatimes.com/industry/energy/oil-gas/india-set-to-lose-farzad-b-gas-field-iran-to-prefer-domestic-companies-over-foreign-firms/articleshow/78730406.cms