India willing to spend $11 billion to develop giant gas field in Iran

An Indian consortium has made an offer of as much as $11 billion to develop a giant natural gas field in Iran and build the infrastructure so that it can export the fuel. The only condition is that Iran guarantees a "reasonable return" on the project.



ONGC Videsh Ltd., the overseas investment unit of India's largest explorer, Oil & Natural Gas Corp (ONGC) is ready to invest as much as $6 billion on the Farzad-B field while spending the remaining amount to build a liquefied natural gas export facility; its MD Narendra Kumar Verma told Bloomberg.

In lieu of that, the group seeks about 18% return, with a willingness to buy all the gas that is exported from the project.

"We have given our best offer to them. Now, it is up to them to agree or not agree," Verma said. "We have told the Iranian authorities very clearly that some basic returns are necessary."

ONGC Videsh and Indian Oil both own 40% interest in the Farsi block that holds Farzad-B field, as compared to Oil India’s 20%.


(Image source Arabian Oil And Gas)