New Delhi: India signed a pact with Iran yesterday to import 7.5 million tonnes of liquefied natural gas (LNG) for 25 years beginning 2009.

"GAIL and Indian Oil Corp have signed an agreement with National Iranian Gas Export Corporation to import 7.5 million tonnes of LNG for 25 years," petroleum minister Mani Shankar Aiyar said.

An MoU was signed between ONGC Videsh Ltd (OVL) and National Iranian Oil Company (NIOCL) whereby OVL will get a 20 per cent share in the development of Iran''s biggest onshore oil field, Yadavaran, and 100 per cent in 30,000-barrels-per-day Jufeyr field. The 20 per cent in Yadavaran would translate into 60,000 barrels per day of crude oil for India, Aiyar said.

"The LNG deal marks a high point in India-Iran relations in hydrocarbon sector," Aiyar said. "Today is a very important and memorable day which will establish closer ties (between the two countries) not just in economic sphere but also social, cultural and political," the Iranian Oil Minister, Bijan Zangeneh, said.

R. Javadi, managing director, National Iranian Gas Export Corp, said Iran would export LNG from the Phase 12 of the gigantic South Pars gas field. Phase 12 is to produce 15 million tonnes of LNG, of which 10 million tonnes have already been contracted.

Indian companies will also have the right to take a stake in the plant that will be set up in Iran to liquefy the natural gas produced from Phase-12. "Indian companies can take up to 4 per cent stake for every one million tonnes of LNG they buy," he said.

The formula for pricing the LNG that was agreed today is reckoned to be a compromise between the extreme positions India and Iran took during last one year of negotiations. There is no official confirmation of the LNG price yet.

Yadavaran has a potential to produce 300,000 barrels per day while Jufeyr can produce 30,000-40,000 barrels per day.

``In both Yadavaran and Jufeyr oilfields, Indian firm will get a fixed rate of return on the capital it invests in bringing the field to production. Ownership of the field would not be passed on. The Indian investment would be paid back in the form of oil," Zangeneh said.