India to clinch big oil and gas deal in Iran

Commodity Online

NEW DELHI: India's Oil and Natural Gas Corp (ONGC) and its partner Britain based Hinduja Group are planning to sign a multi billion dollar deal next month for developing oil and gas fields in Iran.

The ONGC Hinduja combine would meet Iranian the authorities around mid April to finalise 'participating agreement' for the development of Phase 12 of the giant South Pars gas field and South Azadegan oilfield, Mr R S Sharma, Chairman and Managing Directo r, ONGC said here today.

The consortia was in Tehran earlier this month to do technical due diligence for the two fields but ended up being shown old data for the Phase 12 and no data of South Azadegan.

The next meeting is scheduled tentatively around mid April... we hope to sign participating agreement (for the two fields) then, Mr Sharma said.

The development of the two fields are part of the $20 billion investment ONGC and Hindujas have planned together. Hindujas, together with state run ONGC's overseas arm ONGC Videsh Ltd, are to invest $8 billion in developing the onshore South Azadegan oi lfield and Phase 12 of the offshore South Pars gas field.

The two firms would court Switzerland registered Naftiran Intertrade Co (NICO), a unit of National Iranian Oil Co for the deal, he said.

NICO has been offered a stake in the 15 million tons oil refinery, one million tonnes petrochemical plant and 7.5 million tonnes LNG receipt facility planned by Hinduja ONGC at an investment of over $10 billion at either Kakinada in Andhra Pradesh or Man galore in Karnataka.

Petropars, the subsidiary of NICO that has been awarded development rights for South Pars Phase 12, and PetroIran, another subsidiary of NICO owns 90 per cent development rights of Azadegan oilfield.