“The oil discovery has been found to be commercially unviable primarily due to high sulphur content in the oil,” an official in the consortium said.
“The oil discovery has been held to be non commercial and we are not pursuing development of the discovery,” he said.
The three have, however, submitted a master development plan with an investment of $5 billion over seven to eight years in developing a massive gas field they discovered in Farsi.
The discovery, which was subsequently named Farzad-B gas field, holds in-place reserves of around 21.68 trillion cubic feet (Tcf), of which recoverable reserves may be 12.8 Tcf.
OVL holds 40% interest in the Farsi offshore block situated in the eastern part of the Persian Gulf off the coast of Iran near the Saudi Arabian border and covers an area of 3,500 square kilometers.
