ONGC to develop gas fields in Iran

New Delhi, Dec 2 : The state-run oil explorer Oil and Natural Gas Corp (ONGC) and its partners have signed two agreements with Iranian authorities to develop gas fields in that country.

The agreements were signed during Iranian Deputy Oil Minister Seifollah Jashnsaz's India visit Dec 1.

After two days of "intense negotiations" two strategic agreements were signed, the company said in a statement, adding that it would get at least six million tonnes LNG (liquefied natural gas) per annum from Iran.

As per the first agreement, ONGC Videsh Ltd (OVL), the overseas arm of ONGC, and the Hinduja group firm Ashok Leyland Projects Services will have an aggregate 40 percent stake in the South Pars 12 gas field.

The second deal was between ONGC and its partners and Iran LNG. According to the deal, ONGC, OVL, Ashok Leyland Projects and Petronet LNG will jointly take 20 percent stake in the liquification facilities of Iran LNG.

This can later be enhanced up to 40 percent.

"The agreements signed with Iranian delegates on December 1 signify basic mutual understanding, on the macro issues," the release said.

The Indian participation in the projects would ensure supply of minimum six million tonnes of LNG on a long-term basis, it added.

"Iranian side, in addition, agreed to consider OVL's proposal to develop the field and bring the gas produced from Farsi block, discovered by OVL, to India," ONGC said.

Detailed discussion on technical, commercial and contractual issues will start in three weeks in New Delhi, it said.