Iran offers ONGC Videsh and its partner 30% stake in Farzad-B gas field

Iran has offered ONGC Videsh Ltd and its partners a 30 per cent interest in development of the Farzad-B gas field in the Persian Gulf that was discovered by the Indian consortium, officials said.

ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corporation (ONGC), in 2008 had discovered a giant gas field in the 3,500 square kilometer Farsi offshore block.

In April 2011, it submitted a master development plan (MDP) to bring the discovery, which was named Farzad-B, for production but negotiations got stalled as international sanctions were slapped on Iran over its nuclear plans.

Negotiations restarted in 2015, but in February 2020, National Iranian Oil Company (NIOC) informed that Iranian government has decided to award the contract to develop the field to a local firm.

The exploration contract, under which OVL and its partners had discovered gas reserves in Farsi block, provided for the discoverer to be part of the field development, the officials said.

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