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Indian oil firms ONGC Videsh (OVL), Indian Oil Corporation (IOC) and Oil India (OIL) have proposed to invest $3 billion to develop a gas field in Iran’s Farsi block. One of the company source only revealed that the block holds estimated recoverable gas reserves of 12.8 trillion cubic feet. The consortium of the public sector oil companies is yet to submit a commerciality proposal for the development of the oil asset.
The consortium of these Indian oil companies have invested around $90 million in exploration of the asset, which includes drilling of four wells. According to an official, oil discovery in the block is very heavy. The senior official further divulged that if the authorities in Tehran allow them to develop the gas field, they would invest around $3 billion.
The oil firms had submitted the gas commerciality report with the Iranian authorities last December. The ONGC officials also had a meeting with Iranian authorities on approval of the gas commerciality report. The ONGC officials have indicated that they are optimistic about being given the development rights. The block is estimated to have over 1 billion barrel of in-place oil reserves.
