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Iran, India hold energy talks in New Delhi

Iran Materials 26 September 2012 23:51
Iran and India have recently held talks in New Delhi on the participation of Indian companies in the development of some Iranian oil and gas fields in the Persian Gulf.
Iran, India hold energy talks in New Delhi

Azerbaijan, Baku, Sep.25/ Trend F.Milad/

Iran and India have recently held talks in New Delhi on the participation of Indian companies in the development of some Iranian oil and gas fields in the Persian Gulf.

Negotiations regarding the investment methods have been completed, but no report has been so far made on the issue, the Mehr news agency reported.

OVL entered Iran by signing an Exploration Service Contract (ESC) on offshore Farsi Block on December 25, 2002 with the National Iranian Oil Company (NIOC).

It drilled four exploratory Wells, 3 of which (in BB Area) proved to be oil wells and one (in FB area) was gas well. In September, 2008, OVL received the commercial acceptance for the gas field from the NIOC Board with in-place gas reserves of 12.5 Tcf and peak production capabilities of 1100 million standard cubic feet per day.

OVL has spent about $87.875 million in this block till now.

Reportedly, OVL submitted a draft Master Development Plan (MDP) of Farzad B Gas field to Iranian Offshore Oil Company (IOOC) on 2009. Discussions on the Development Service Contract (DSC) are being held since then.

Iranian authorities have approved a Master Development Plan (MDP) for the launch of the Farzad-B gas field.

However, the contract has not been signed because of threat of being sanctioned by the US, which is against any company investing more than $20 million in Iran's energy sector in any 12-month period.

To keep Iran engaged, India wants a higher rate of return on its investment. An investor gets a fixed rate of return on its investment as Iranian law prohibits foreigners owning oil and gas resources.

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