ONGC Videsh Contender for Stake in Two Iranian Fields

ONGC Videsh Ltd is likely to get a 20 percent stake in Khusk and Hosseineieh oil fields in Iran on nomination basis.

Sources in the Ministry of Petroleum and Natural Gas said Iran has offered 20 percent share (equal to 60,000 barrels per day or 3 million tons of crude oil annually) in Khusk and Hosseineieh fields in exchange for India buying 5 million tons of LNG from Tehran.

OVL would be accommodated after Tehran selects operators of the two fields through a bidding round by September-end. OVL would have to participate in the bidding process.

Initially, Iran was keen on getting OVL on board the giant South Azadegan oil field but operator Japan has yet to approve any participation of another party in the field.

"National Iranian Oil Co could also consider offering 25 per cent from its share in the field (about 60,000 barrels per day) to OVL," they said. As per indications, the Japanese prefer participation from one of the major oil multinationals in the project.

As regards finalization of term sheet for LNG imports, an Iranian delegation will visit India this month for further discussions. The term sheet is being finalized by Indian Oil Corp and GAIL (India) with National Iranian Gas Export Co.

Till now, there had not been much progress in allocation of a suitable oil field by Iranians to India on nomination in lieu of LNG that the latter will purchase from Iran under a deal signed early last year.