CorporateIran offers 40% in South Pars gas field to OVL, Hindujas
Iran today offered 40 per cent stake in a giant gas field in the Persian Gulf to India"s ONGC Videsh (OVL) and NRI business conglomerate Hindujas, who would split the stake equally.
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At the end of second day of talks, Iran"s Deputy Oil Minister and Managing Director of National Iranian Oil Co (NIOC) Seifollah Jashnsaz said 40 per cent interest in the development of Phase-12 of South Pars gas field was offered to OVL, the overseas arm of Oil and Natural Gas Corp, and the Hinduja Group.
Hinduja Group"s Gopichand Hinduja said the stake in the $7.5 billion South Pars Phase-12 (SP-12) project would be split equally between his Group and OVL.
Naftiran Inter-Trade Company, subsidiary of National Iranian Oil Company, will own 40 per cent and the balance 20 per cent will be held by Sonangol of Angola.
Jashnsaz also said that ONGC will get 20 per cent stake in Iran LNG, which will convert the gas produced from South Pars field into LNG. In return, ONGC will get at least six million tonnes of LNG a year.
SP-12 is to produce 3 billion cubic feet per day of gas, two-third of which is to be converted into LNG for export.
Gas from SP-12 would go to Iran LNG, which is building a $4.35 billion plant at Tombak Port by 2011 to turn it into liquid state so that it can be shipped in cryogenic vessels.
The remaining gas output from SP-12 would be consumed internally. The field would also produce 1,20,000 barrels per day of condensate that would be exported.