Iran Offers India 40% Stake in South Pars
NEW DELHI (Dow Jones), Dec. 1, 2009
National Iranian Oil Co., or NIOC, has offered India a 40% interest in phase 12 of the South Pars gas field and 6 million metric tons of liquefied natural gas a year, its managing director said Tuesday.
India's state-run Oil & Natural Gas Corp. Ltd. and Hinduja group will each get 20% interest in South Pars, which will need an investment of $7.5 billion, Seifollah Jashnsaz told reporters after second day of talks with Indian companies on investments in Iran.
South Pars, the world's largest gas reservoir, is shared by Iran and Qatar. Phase 12 is the southeastern block of the field and covers 150 square kilometers.
Naftiran Intertrade Co., a unit of NIOC, will hold 40% in South Pars Phase 12 and the balance will be held by Angola's state oil company Sonangol, Jashnsaz said.
Iran has also offered ONGC, Hinduja group and India's Petronet LNG Ltd. a stake in Iran LNG Co., Jashnsaz said. The LNG project aims to produce 3 billion cubic feet of gas a day from south pars Phase 12.
"Both the opportunities put together will result in supply of up to 6 million tons of LNG to India," ONGC Chairman R.S. Sharma said.
India has the option to raise its investment in South Pars. For every extra dollar investment, India will get a right in the downstream LNG project, Jashnsaz said.
Iran may also help Indian companies raise funds for the projects, with Naftiran Intertrade depositing its foreign exchange with Indian banks, Sharma said.
The investments in Iranian projects are subject to board and federal government approvals, Sharma said. NIOC's Jashnsaz also said ONGC's overseas investment arm, ONGC Videsh Ltd., has been given responsibility to develop Farsi gas field in the Persian Gulf.
OVL and India's state-run refiner Indian Oil Corp. each own a 40% stake in the 3,500 square kilometer Farsi offshore block that was awarded to the consortium in 2002. Oil India Ltd. owns the remaining 20%.
Iran will also restart negotiations with India on India-Pakistan-Iran gas pipeline in December in New Delhi, Jashnsaz said.
The 2,775-kilometer pipeline project has been stuck due to several issues like gas pricing, project structure, security of supplies.
Copyright (c) 2009 Dow Jones & Company, Inc.
Operates 38 Offshore Rigs
Manages 8 Offshore Rigs
- Venezuela's PDVSA To Tap Oil Customers To Pay $449MM To ONGC (Nov 15)
- Sources: India ONGC Strikes 'Good' Offshore Oil, Gas Find (Sep 20)
- India To Acquire Seismic Data Of 48,000 Line kms To Boost Oil, Gas Output (Sep 12)
Company: Indian Oil Corporation more info
- Indian Refiners Turn To Use Dirty Fuel To Produce Power, Gas (Dec 05)
- Indian Oil Aims For LNG Import Capacity Of 13.5 Million Tonnes In 5 Years (Oct 27)
- Sources: India's IOC Buys New US Crude Grades For December Delivery (Oct 10)
Company: ONGC Videsh more info
- India's ONGC Videsh to Spend Over $3 Billion on Iran Gas Block (Apr 04)
- India Clears ONGC's Extra 11% Stake Buy in Russia's Vankor Fields (Oct 05)
- ONGC Videsh Inks Deal with Rosneft to Up Stake in Russia's Vankorneft (Sep 15)
Company: National Iranian Oil Company more info
- National Iranian Oil Co, Thailand's PTTEP Agree To Oilfield Studies (Dec 06)
- Britain Pushing to Ease Sanctions on BP Gas Field - Report (Sep 22)
- On the Table: Iran to Tender 8 Exploration Blocks (Mar 02)
Company: Petronet LNG Ltd. more info
- Petronet Eyes 2019 Rescue for Nearly Idle $700 Million LNG Plant (Jul 18)
- India's PM Narendra Modi Calls for Fresh Look at Country's Petroleum Sector (Jan 06)
- India's Petronet Near To Winning Better Gas Terms From Qatar Sources (Nov 20)