OVL still after Farzad-B Gas Field

ONGC Videsh Ltd (OVL) has said interests in Iran’s discovered Farsi offshore block are still alive, reported Indian newspaper BusinessLine.

Company’s managing director Narendra K Verma said there is nothing that suggest that India is out of race. “We have been interacting with Iranian authorities… negotiations are not yet concluded.”

Media reports have suggested that Iran has put the Farzad-B gas field on a list of fields it plans to auction to put pressure on India to invest in the field.

OVL is keen to develop the Farzad-B gas find, which is estimated to hold in-place reserves of up to 21.68 trillion cubic feet (Tcf), of which 12.8 Tcf of gas and 212 million barrels of condensate may be recoverable, BusinessLine reported.

India had started exploration work as a service contractor, but now it prefers a production sharing contract before going for development.

OVL is now in discussions with the new elected Government that is working on a model contract or any other mechanism for all fields, including Farzad-B, the newspaper said.