The ongoing sanctions imposed by the US and some European countries against Iran due to its nuclear programme may put some of the ONGC Videsh's plans in that country on the backburner, according to a top executive of ONGC.
In Iran, ONGC Videsh, the overseas arm of ONGC, is currently engaged in the Exploration Service Contract (ESC) for Farsi Offshore Exploration Block involving the Master Development Plan for the Farzad -B? Gas Field in the Persian Gulf at an estimated investment of over USD 5 billion.
ESC for Farsi Offshore Exploration Block was signed in December, 2002. OVL as an operator with 40 percent stake carried out seismic survey and drilled four exploratory wells in the Block during 2006-07 resulting in discovery of oil and gas. The other consortium partners are IOC with 40 percent and OIL with 20 percent stake.
Subsequently, the Farzad-B gas field was declared Commercial in 2008 by National Iranian Oil Company. The Master Development Plan for the Farzad B Gas Field is currently in the finalisation stage. OVL?s share of investment was about USD 36 million as on March 31, 2011.
On the possible disruptions of the crude imports from Iran, it is said that India is currently getting 18 million tonnes of oil from that country and it will be difficult for the Indian refineries to change the current arrangement.
