OVL consortium to develop 12.8 TCF Farsi gas field in Iran

Mumbai: Iran has indicated that it may award rights to develop the 12.8 trillion cubic feet gas find in the country's Farsi block to a consortium led by ONGC Videsh Ltd, the overseas arm of Oil and Natural Gas Corporation.

''We are assessing the commerciality of the finds. Our priority will be to give the development rights to ONGC," Iranian oil minister Gholam Hossein Nozari said on the sidelines of the 19th World Petroleum Congress in Madrid.

The OVL consortium had submitted a report on the commercial viability of the gas find, in December, and is awaiting a decision from the Iranian authorities to go ahead with the development.

The consortium of OVL, Indian Oil Corporation and Oil India Ltd has proposed to invest about $3 billion in bringing to production 12.8 TCF of recoverable gas reserves found last year at Iran's Farsi block, in the next 3-4 years.

The Iranian minister said his country was keen to have Indian firms invest in the oil and gas exploration in his country.

OVL-IOC-OIL consortium has a service contract for the Farsi block where they will be reimbursed 35 per cent over the $90 million investment they have made during the exploration phase.