OVL asks for more time to ink Iran oil field pact

Seeks extension until June 30, 2006.

ONGC Videsh Ltd, the overseas arm of ONGC, has sought an extension for signing an agreement for the Jufeyr oil field in Iran. The pact for the field, given to OVL as part of India's deal to buy 5 million tonnes of LNG from Iran beginning 2010, was to be signed by December 31, 2005. The company is now seeking an extension till until June 30, 2006.

The extension was being sought on the grounds that the Iranian side provided data on the field in phases, said ONGC executives. OVL had submitted a master development plan in April for developing Jufeyr but the National Iranian Oil Co (NIOC) had raised issues which were later clarified. However, NIOC sought a revision again.

According to the MoU signed between NIOC and OVL in January, OVL gets 100 per cent rights for developing Jufeyr as operator and 10 per cent in Yadavaran field as non-operator in lieu of signing the LNG sale purchase agreement for 5 mt.

Chinese company Sinopec will be the operator of the field in Yadavaran with 50 per cent stake and NIOC will have a 30 per cent share. This would leave OVL with a right equivalent to 300,000 barrels per day of oil.

IOC has already entered into an MoU with Petropars for jointly developing an upstream block in South Pars along with an LNG liquefaction facility.