OVL consortium discovers major gas reserves in Iran

09 May 2007

Mumbai: A consortium of Indian companies led by ONGC Videsh Ltd, the overseas arm of Oil and Natural Gas Corporation (ONGC), has announced a huge gas find in Iran with estimated reserves of around 10 trillion cubic feet - the largest find in Iran this year.

OVL had previously discovered oil in Iran''s Farsi offshore block that lies 90-km off Bushehr port.

''''We have now made a natural gas discovery in the fourth and final commitment well on the block,'''' a top company official said.

OVL has 40 per cent stake in the 3,500 sq km block. Indian Oil Corp (IOC) has a similar stake, while Oil India Ltd has the remaining 20 per cent stake in the block.

Some estimates put the in-place gas reserves at 10 trillion cubic feet and oil reserves at 1 billion barrels.

OVL cannot take oil and gas found in the iranian block to India. Officials, however, said the reserves were under appraisal.