Indian OVL Qualifies for Iran Oil, Gas Projects

ONGC Videsh (OVL), the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), has won the right to bid for oil and gas development projects in Iran.

The Indian company is among the 29 international firms that have qualified to bid in the upcoming tender for oil and gas projects. OVL already has a presence in Iran. In 2008, the company discovered the Farzad B gas field, with estimated reserves of 12.8 trillion ft³. It remains undeveloped thanks to international anti-Iran sanctions that were lifted last year.

On the issue of the development of the field, a senior company official told Press Trust of India January 3: "We are in negotiations with Iran for development rights of Farzad-B field." The official added that OVL will definitely look at participating in the bid round that Iran will hold using a new, less restrictive Iran Petroleum Contract (IPC) model.

The IPC model ends a buy-back system dating back more than 20 years under which Iran did not allow foreign firms to book reserves or take equity stakes in Iranian companies.

Shardul Sharma