ONGC Videsh Ltd. (OVL), is all set to spend more than $3 billion on Iran’s Farzad-B natural gas block. OVL is a Miniratna Schedule “A” Central Public Sector Enterprise (CPSE) of the Government of India under the administrative control of the Ministry of Petroleum & Natural Gas’, and a wholly owned subsidiary and overseas arm of Oil and Natural Gas Corporation Limited (ONGC). The company holds stake in 37 oil and gas projects in 17 countries.
Besides others, Iran is now looking up for foreign investments to revive its oil and gas exploration, and establish new petrochemical plants and gas-processing facilities after international sanctions on its economy were removed in 2016.
Output from Farzad-B may reach between 1 to 1.6 billion cubic feet of natural gas per day. OVL submitted a revised plan to the Iranian government for the block in March this year, which the company is capable of developing within five years. OVL is now awaiting nod from Tehran.