Iran, India to Continue Talks on Developing Oil and Gas Field

TEHRAN (FNA) India’s Oil and Natural Gas Corp. (ONGC) and the Hinduja Group will meet again with Iranian firms on developing oil field and a gas field in Iran and downstream projects in India a Hinduja Group official said.

Officials from ONGC Videsh, the overseas arm of state-run ONGC, and Hinduja’s Ashok Leyland Project Services met officials of Iran’s state-run Petropras and Naft Iran Intertrade Co., a subsidiary of National Iranian Oil Co..

Subir Raha, executive vice chairman of Hinduja Group India, said the upstream and downstream projects could cost 20 billion dollars. “This is the ballpark number at current prices. But the exact number will be known after a detailed feasibility report”, he added.

“Negotiations will continue, we will meet shortly” he said.

An ONGC official said no agreement had been signed on the Indian projects, but a basic understanding on some issues had been reached.

“There are still some open issues. We are moving ahead. Commercial issues have yet to be worked out”, said the ONGC official, who declined to be identified.
The two sides had yet to finalize gas pricing project cost and supply commitment from Iran.

OBGC and Hinduja Group are looking at joining the development of the South Pars Phase 12 gas field and the Azadegan oil field in Iran.

ONGC has offered the Iranian firms an equity stake in its proposed refinery and a liquefied natural gas terminal in South India, which Hinduja Group will also be involved in.

ONGC plans to build a 300,000 barrels-a-day refinery in the Andhra Pradesh State, and a 7.5 million tons-per-year LNG terminal in Karnataka State. 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 American pressure over Tehran’s nuclear program.

Iran and China’s Sinopec recently signed an agreement to develop the big Yadavaran oil field.

A venture in Iran would be ONGC Videsh’s second entry into Iran, where it operates the Farsi block.