Indian oil firms may face US sanctions for ties with Iran

Oil and Natural Gas Corporation (ONGC) and Indian Oil Corporation (IOC) are among 41 firms worldwide that are expected to face US and EU sanctions for alleged energy ties with Iran.

The US authorities have also named three other Indian oil and gas firms - ONGC Videsh Ltd, Oil India Ltd and Petronet LNG Ltd - in the list of firms that contravenes the provisions of the US sanctions on Iran.

The list was brought out by the United States Government Accountability Office (USGAO) in its report titled 'Firms Reported to Have Commercial Activity in the Iranian Energy Sector and US Government Contracts", released this week.

"The Iran Sanctions Act (ISA) provides for sanctions against persons, including foreign firms, who invest more than $20 million in Iran's energy sector in any 12-month period," the report said.

A joint venture of OVL, IOC and OIL, which explored for oil and gas in the Farzad-B area of the Farsi block on the Iran-Saudi border, have proposed to invest around $5.5 billion in the gas field.

The Farsi block is estimated to have recoverable natural gas reserves of 21.68 trillion cubic feet.