India's Oil Cos Propose $5B Investment in Iranian Gas Block


India's state-controlled oil companies are proposing to invest some $5 billion in a gas discovery located in Iran's 3,500 sq km Farsi Block, reported the Press Trust of India on Thursday, citing an unnamed source.

Approved for commercial development in September 2008 by the Iranian government, the Farzad gas field is estimated to hold reserves of as much as 21.68 trillion cubic feet of gas, of which recoverable reserves could total 12.8 trillion cubic feet, according to the local media outlet.

ONGC Videsh and Indian Oil Corp. both hold a 40% stake in the Farsi offshore block, which was awarded to the consortium in 2002; Oil India holds the remaining 20%.