ONGC eyes 20-25% stake in Iranian gas field

The state-owned oil exploration major ONGC is eyeing 20-25 per cent stake in a giant Iranian gas field even as it awaits Tehran's nod for its plan to develop a gas field it had discovered two years ago.

ONGC Videsh, the overseas arm of Oil and Natural Gas Corp, will discuss participation in the development of Phase-12 of the gigantic South Pars gas field in the Persian Gulf when top officials of Iranian national oil firm visit the country next week, sources said.

The Hinduja Group too is interested in the $7.5- billion South Pars Phase-12 (SP-12) project but OVL's pursuit is independent of it.

OVL has not approached Petropars, the unit of National Iranian Oil Co (NIOC) which holds the rights for the field, for picking a stake through a joint venture with the Hindujas.

Both OVL and the Hindujas had in the past signed separate MoUs with Petropars for SP-12 and are independently talking to NIOC, they said adding if the Hindujas are able to convince Iran to give them a stake in the field, the state-run firm will welcome them in the consortium formed by Petropars.

In its talk with NIOC next week, OVL would also take up the issue of granting development rights for the offshore Farsi gas fields for which it, along with Indian Oil and Oil India, has submitted a $5 billion development plan.

Sources said OVL would negotiate getting liquefied natural gas (LNG) in return for its efforts in both the projects.