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Tuesday, 02 December, 2008, 22:10 GMT | more >>

ONGC Videsh in Farsi pole position



By Upstream staff 

An Indian consortium led by ONGC Videsh, the overseas arm of state-run Oil & Natural Gas Corporation, is set to get the go ahead to develop 12.8 trillion cubic feet of recoverable natural gas reserves in Iran’s Farsi Block, Indian media reported.

Iranian Oil Minister Gholam Hossein said the ministry was assessing the commerciality of the finds, India’s Economic Times reported.

“Our priority will be to give the development rights to ONGC,” Hossein said on the sidelines of the 19th World Petroleum Conference in Madrid yesterday, the newspaper said.

ONGC Videsh has proposed exporting production from the Farsi block to India as liquefied natural gas.

As reported by Upstream, the consortium, including Indian Oil and Oil India Ltd, aims to invest $3 billion over the next three to four years to develop the reserves. If the ONGC Videsh group gets approval for the project, it will be reimbursed at 15% over and above its outlay for the project.

Tehran will retain ownership and marketing rights to the gas in the block.

The consortium has already invested about $90 million in exploring and proving up the reserves..

Hossein also said Iran could be prepared to change its stance on the delivery point for gas via the proposed pipeline linking India and Pakistan to field in Iran after meeting Indian Energy Minister Murli Deora in Madrid.

Tehran wants to deliver the gas to the Pakistan border, leaving India dependent on long-time rival Pakistan to deliver its share of the exports. India has indicated it wants the gas delivered to its border with Pakistan.

"We are open to suggestions ... we can accommodate them," Hossein said, the newspaper reported.

However, he urged New Delhi and Islamabad to work on progress made in improving relations to allow a decision to be made on whether to proceed with the $7.4 billion project and key contract s to be awarded.


Wednesday, 02 July, 2008, 01:20 GMT  | last updated: Wednesday, 02 July, 2008, 05:04 GMT

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