Business | Oil & Gas
Iran and ONGC finalise proposal to develop gas and oilfield in the Gulf
Indian firm will soon begin technical studies of the Farsi project.
- Reuters
- Published: 00:31 March 4, 2008
Tehran: Iran's state offshore company and India's Oil and Natural Gas Corp. have finalised a fin-ancial proposal to develop a gas and oilfield in the Gulf, an Iranian news agency reported on Sunday.
Mahmoud Zirakchianzadeh, managing director of the Iranian company, told the Isna news agency the two sides had completed negotiations about the Farsi field in Tehran on Saturday.
"In our negotiations ... their financial proposal about the development on Farsi field was received and finalised," he was quoted as saying.
ONGC will now begin technical studies of the project, which is planned to take place in two phases with an expected yield of 500 million cubic feet of natural gas per day from each phase, Isna said, giving no further details.
The Farsi block is already operated by ONGC Videsh, the overseas arm of ONGC, along with India's top refiner Indian Oil Corp. Ltd. and smaller explorer Oil India Ltd. It was not immediately clear whether the finalised proposal announced by Zirakchianzadeh represented an addition to the agreement on operating the Farsi block.
Last May, a senior Iranian oil official said he could not confirm a report that ONGC and partners had found gas reserves of up to 10 trillion cubic feet and 1 billion barrels of oil in the Farsi block.
Business Editor's choice
-
‘Wrong Way' Krugman
The source of our economic malfunction lies with government-mandated bank regulations
-
Greek exit could make Eurozone stronger
Departure will show limits of bailouts and allow remaining members to act much more like a unit
-
UAE upholds values of free trade
Recently released statistics confirm an established fact, namely that of the UAE embracing the free trade principle in general and imports in particular
