Business | Oil & Gas
Indian firms line up $3b to develop fields in Iran
Indian oil companies plan to invest $3 billion to develop gas fields in Iran's Farsi block if Tehran gives the go-ahead, a source said, adding the block holds estimated recoverable gas reserves of 12.8 trillion cubic feet.
- Reuters
- Published: 00:01 June 14, 2008
New Delhi: Indian oil companies plan to invest $3 billion to develop gas fields in Iran's Farsi block if Tehran gives the go-ahead, a source said, adding the block holds estimated recoverable gas reserves of 12.8 trillion cubic feet.
The Gulf block is the first overseas asset for which Indian firms have been given exclusive exploration rights, with a service contract awarded to them in 2002, but permission to develop the asset has yet to be given.
Iran is drawing interest from Indian and Chinese firms that are keen to tap the world's second-largest reserves of oil and gas and are less susceptible than many other companies to Western pressure over Tehran's nuclear programme.
The state-run Oil and Natural Gas Corp and Indian Oil Corp (IOC) each hold a 40 per cent participating interest in the Farsi block, while smaller outfit Oil India has the rest. It is operated by ONGC's overseas investment arm ONGC Videsh.
"So far we [the consortium] have invested $90 million and if we are allowed to develop the [gas] field, we would be investing around $3 billion," said a senior IOC official.
More from Oil & Gas
More from Business
Business Editor's choice
-
Saudi-Bahraini economic ties hit new high
Whilst press reports continue speculating on a possible new political structure defining ties between Saudi Arabia and Bahrain, facts on the ground confirm ever- stronger economic ties between the two neighbours
-
Cupid targets the Fed with early tweets
Declarations range from pure romance to cute overtures and racier fare
-
Do unemployment figures flatter to deceive?
Jobseekers and recruiters give out mixed signals ranging from optimism to downright despair even as official data show recovery
