OVL Looks For 20Pc Stake In Iran Oil Field

New Delhi: ONGC Videsh Ltd (OVL) has asked 20 per cent participating interest in Iran''s Yadavaran field, which has pegged capacity to yield 60,000 barrels per day (bpd) of crude. They have asked Iran to consider giving OVL a 20 per cent stake in the project. The fate of the five-million-tonne liquefied natural gas (LNG) deal, which was signed between India and Iran in 2005, is linked to the development of these fields. In 2005, as part of a memorandum of understanding (MoU) signed with India, Iran had accorded to give 100 per cent participating interest in the Jufeyr project along with 10 per cent in the Yadavaran project to OVL. However, if OVL, is unable to get 100 per cent participating interest in Jufeyr field then there was an option that Iran would offer 20 per cent in Yadavran project.

Besides, PEDEC, a subsidiary of National Iranian Oil Company (NIOC), is understood to have informed OVL that the MoU inked in 2005 has expired though OVL had prepared a master development plan for the project and submitted the same to PEDEC. Since Jufeyr field has been offered to Belarus, they will like them to consider the option of offering 20 per cent stake to OVL in Yadavaran project. A sale-and-purchase deal between India and Iran for five million tonnes of LNG, with an option of raising it to 7.5 million tonnes, was signed in 2005 June. The Indian companies have got stake in Farsi block.