ONGC Videsh revises proposal for Iran’s Farzad gas block
MUMBAI: State-run ONGC’s overseas arm, ONGC Videsh, has revised its proposal to develop Iran’s Farzad B gas block and could potentially invest over $3 billion on the project, a top executive from the company said on Tuesday.
ONGC Videsh sees output from the asset rising to 1billion- 1.6 billion cubic feet per day of gas in five years from the launch of the project, NK Verma, managing director of ONGC Videsh, told reporters at the sidelines of an energy conference.
India was among the few countries that didn’t completely stop trading with Iran when Western sanctions were imposed on it.
As a part of its strategy to secure energy overseas, India has been trying to close the deal for the Farzad B block using diplomatic ties but has not succeeded so far.
ONGC Videsh had discovered the Farzad B gas field in 2008 and had submitted plans to develop it in 2010 but due to geopolitical reasons, the state-run companies had to surrender the block and it was later put up for a fresh bid by Iran. After the sanctions on the country were lifted, the block evoked interest in many investors, making India’s position uncertain.
ONGC Videsh in now confident that the revised plan would work in its favour. Verma said that ONGC Videsh is working on scaling up productions and pegs FY18 output at 14 million tonnes oil equivalent as against 12 million tonnes in FY17.
He said that the company will invest $45 million to produce gas from its Imperial Energy asset.
Separately, the parent company ONGC is also working on scaling up gas production and expects output from Daman Phase-1 to be 2-3 million cubic meters a day, TK Sengupta, director (offshore), ONGC, said at the same event in the city.
He said that the development of phase two of the Daman block would be completed by May 2018, which will provide another 3 million cubic meters of gas a day.
ONGC Videsh sees output from the asset rising to 1billion- 1.6 billion cubic feet per day of gas in five years from the launch of the project, NK Verma, managing director of ONGC Videsh, told reporters at the sidelines of an energy conference.
India was among the few countries that didn’t completely stop trading with Iran when Western sanctions were imposed on it.
As a part of its strategy to secure energy overseas, India has been trying to close the deal for the Farzad B block using diplomatic ties but has not succeeded so far.
ONGC Videsh had discovered the Farzad B gas field in 2008 and had submitted plans to develop it in 2010 but due to geopolitical reasons, the state-run companies had to surrender the block and it was later put up for a fresh bid by Iran. After the sanctions on the country were lifted, the block evoked interest in many investors, making India’s position uncertain.
ONGC Videsh in now confident that the revised plan would work in its favour. Verma said that ONGC Videsh is working on scaling up productions and pegs FY18 output at 14 million tonnes oil equivalent as against 12 million tonnes in FY17.
He said that the company will invest $45 million to produce gas from its Imperial Energy asset.
Separately, the parent company ONGC is also working on scaling up gas production and expects output from Daman Phase-1 to be 2-3 million cubic meters a day, TK Sengupta, director (offshore), ONGC, said at the same event in the city.
He said that the development of phase two of the Daman block would be completed by May 2018, which will provide another 3 million cubic meters of gas a day.
