A consortium of ONGC Videsh Limited (OVL), Indian Oil Corporation Limited (IOC) and Oil India Limited (OIL) will spend around $5 billion in the coming three to four years for placing Farzad gas field into production, Times of India reported. OVL has proposed a development plan to the Iranian authorities. The field, discovered by the consortium, is expected to hold inplace reserves of about 21.68 trillion cubic feet (Tcf), of which recoverable reserves are 12.8 Tcf.
In September 2008, Iran had granted the commerciality of the discovery in the Farsi block.
OVL-Led Consortium wants to liquefy the gas and transport it to India in the form of liquefied natural gas (LNG). A source said Iran has till now not given approval to the development plan which was submitted in June 2009.
OVL and IOC hold 40% stake each in the 3,500 square kilometers Farsi offshore block that was awarded to the consortium in 2002. Rest 20% is with OIL.
The three companies had also discovered oil on the block and submitted commerciality report of the discovery in November 2008.
If the group secures the developmental rights, they will be paid a 15% rate of return over and above the amount spent by them.