Iran yet to reply to OVL offer for Farzad-B gas field: Company MD

10 October, 2017
Source: PTI

ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), on Monday said it hasn't heard from Iran on the $11 billion 'best offer' it gave for developing the Farzad-B gas field.

"We are ready to invest provided we get reasonable returns," OVL Managing Director Narendra K Verma told reporters here.

OVL has offered to invest about $5.8 billion in developing the Farzad-B gas field and another $5 billion to build a liquefied natural gas export facility, he said. Iran wants a high price of the natural gas, making the investment practically unviable.

"We will get the project the day we accept their conditions. But for me to go ahead and make such investments, it has to bring reasonable returns and making economic sense," he said without elaborating.

"We have given them our best offer. Now, it is up to them to agree or not agree," Verma said. 

Farzad B was discovered by OVL in the Farsi block about 10 years ago. The project has so far cost the OVL-led consortium, which also includes Oil India Ltd and Indian Oil Corp (IOC), over $80 million.

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