Oil and Natural Gas Corp (ONGC) and its partners will invest about $10 billion in two giant gas fields and an LNG project in Iran, Iranian Deputy Oil Minister Seifollah Jashnsaz said.
Iran will also sell 6 million tonnes a year of liquefied natural gas (LNG) to India to meet its growing energy needs.
ONGC Videsh, the overseas arm of the state explorer, and Hinduja Group firm Ashok Leyland Projects Services (ALPS) late yesterday evening signed agreements to take 40 per cent stake in Phase 12 of the gigantic South Pars gas field, he said.
Phase 12 is the largest of the 28 phases in which the South Pars gas field in Persian Gulf has been divided and will cost $7.5 billion.
ONGC and ALPS along with Petronet LNG also signed pact to take 20 per cent stake in Iran LNG that is building a $4.32 -billion plant on the southern coast to convert gas from Phase 12 (SP-12) into liquefied natural gas for exports.
Jashnsaz said considering the "good work" done by OVL in discovering a big gas field in the Farsi block, Iran has also decided to award it the right to develop the field. OVL, along with Indian Oil and Oil India, will invest $5.5 billion in developing the Farzad-B gas field.
Iran does not give foreign firms ownership of oil and gas and instead pays a fixed fee on the investment made. Indian would, however, get LNG in return. In case of any default or delays, New Delhi can deduct the promised return from the money it pays to Iran for buying crude oil.
