IOC, OVL get a block in Iran gas field

Iran on Monday agreed to give Indian oil firms a block in North Pars gas field in Persian Gulf for production of LNG and its export to India and other countries.

State-run Indian Oil Corporation and Iran's Petropars had earlier proposed to develop one of the 20 blocks in the gigantic South Pars gas field.

Separately, ONGC Videsh Ltd, the overseas arm of Oil and Natural Gas Corp, had also evinced interest in taking over one of the blocks of the South Pars field for gas production, conversion into LNG and its export.

Iran, however, clubbed OVL and IOC's proposal and offered to give a block in the neighbouring North Pars gas field, which till now has not been explored.

"North Pars field can produce 3.6 billion cubic feet of gas per day. One of the blocks in the field will be given to Indian oil firms," Bijan Zanganeh, Iranian Oil Minister said.

The minister said contracts for almost all the phases of the South Pars gas field have been finalised and so a block from North Pars field would be given to Indian firms.

IOC had earlier teamed up with Petropars for bringing to production one of the blocks to develop the 500 sq mile South Pars field, and produce 9 million tones per annum of Liqufied Natural Gas to export to India and other countries.

The IOC-Petropars consortium had also submitted a $ 3 billion plan to National Iranian Oil company for development of block and production of LNG.