(ET)
Iran has agreed to take the gas produced from the ONGC Videsh Ltd-discovered Farzad-B field in the Persian Gulf, but differences remain over returns on investments made by the Indian firm. Iran previously conditioned granting rights to develop the Farzad-B fields to OVL on Indian firms buying all of the gas produced at the imported-LNG equivalent rate.
This proposition, which involved an investment of USD 11 billion in first developing the field and then setting up a facility to convert it into liquid gas (liquefied natural gas or LNG) for shipping to India, was considered very expensive, sources privy to the development said. Iran has now written to OVL, agreeing to take delivery of all of the gas produced from Farzad-B offshore field at a landfall point in the Persian Gulf nation.
OVL, the overseas investment arm of state-owned Oil and Natural Gas Corp (ONGC), too has written back accepting the offer and has asked Iran to detail the delivery point, they said. Sources said Iran has stated that it will take all of the unprocessed natural gas and asked OVL to re-do the investment numbers.
