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101987
Sat, 01/23/2010 - 13:02
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http://m.oananews.org//node/101987
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Largest Indian oil company in Iran’s $12.5bn project
New Delhi, Jan 23, IRNA – India’s largest oil company, the Indian Oil (IO), has asked for government’s permission to participate in Iran’s oil projects, worth 12.5 billion US dollars.
The IO is the third partner at the Indian consortium, besides the ONGC, and the Hinduja, IRNA reported from New Delhi.
India’s Economic Times daily focusing on the issue, wrote in its Friday edition, “Iran has proposed offering a 40% share of the South Pars Oil Field’s development project to ONGC and the Hinduja Group for the expansion of South Pars Oil Field’s 12th Phase, worth 7.9 billion dollars and 20% of the shares of an LNG terminal worth 4.5 billion dollars, in return for importing at least six million tons of LNG a year from Iran.”
South Pars Oil Field’s 12th Phase has a 35 billion cubic feet gas reserves.
The Managing Director of the Indian Oil, B. M. Bensel said, “This project is important for us, because we intend to get gas from Iran for our Inver Terminal.”
The company intends to put up an LNG Terminal with nominal annual capacity of 2.5 million tons near Chennai city.
The two partner companies are in fact competing with each other over importing LNG from Iran. The Head of the Indian Oil, Sartak Behuria, in his first letter to the Indian Oil Ministry declared, “The Indian Oil Company has been seeking a way to import LNG from Iran, and thus entered talks with the Iranian officials. The matter is included in the agenda of talks between the two countries’ upcoming work groups.”
According to the Economic Times, it seems as if the ONGC and the Hinduja Group companies have managed to convince the National Iranian Oil Company to sign contracts with them on implementing the project.
Behuria added in the beginning of his of his letter, “The Oil and Gas Ministry is hereby requested to act immediately to include the Indian Oil Company in these projects (namely the South Pars 12th Phase and the LNG Terminal).
According to a top ONGC company official, the foreign operations branch of the company, namely the OVL, would gain a 20% or more share of the South Pars 12th Phase Project and 10% or more of the LNG Terminal’s project. Of course, finalizing the matter depends on negotiations with the Hinduja Group.
The official who spoke on condition of anonymity also said that the ONGC would rather than joint work at the projects with Hinduja establish a consortium.
The OVL, Hinduja Group, and Petronet LNG of India in order to cooperate in the expansion process of the gas field in Iran and get involved in Iran’s LNG projects have singed two local general agreement contracts with the Iranian officials on December 2, 2009.
The report adds that the contract on implementing the projects has been signed during the visit of the Iranian Deputy Petroleum Minister Seifollah Jashnsaz and would probably be finalized by the end of March 2010 between the Indian and the Iranian companies./end
The IO is the third partner at the Indian consortium, besides the ONGC, and the Hinduja, IRNA reported from New Delhi.
India’s Economic Times daily focusing on the issue, wrote in its Friday edition, “Iran has proposed offering a 40% share of the South Pars Oil Field’s development project to ONGC and the Hinduja Group for the expansion of South Pars Oil Field’s 12th Phase, worth 7.9 billion dollars and 20% of the shares of an LNG terminal worth 4.5 billion dollars, in return for importing at least six million tons of LNG a year from Iran.”
South Pars Oil Field’s 12th Phase has a 35 billion cubic feet gas reserves.
The Managing Director of the Indian Oil, B. M. Bensel said, “This project is important for us, because we intend to get gas from Iran for our Inver Terminal.”
The company intends to put up an LNG Terminal with nominal annual capacity of 2.5 million tons near Chennai city.
The two partner companies are in fact competing with each other over importing LNG from Iran. The Head of the Indian Oil, Sartak Behuria, in his first letter to the Indian Oil Ministry declared, “The Indian Oil Company has been seeking a way to import LNG from Iran, and thus entered talks with the Iranian officials. The matter is included in the agenda of talks between the two countries’ upcoming work groups.”
According to the Economic Times, it seems as if the ONGC and the Hinduja Group companies have managed to convince the National Iranian Oil Company to sign contracts with them on implementing the project.
Behuria added in the beginning of his of his letter, “The Oil and Gas Ministry is hereby requested to act immediately to include the Indian Oil Company in these projects (namely the South Pars 12th Phase and the LNG Terminal).
According to a top ONGC company official, the foreign operations branch of the company, namely the OVL, would gain a 20% or more share of the South Pars 12th Phase Project and 10% or more of the LNG Terminal’s project. Of course, finalizing the matter depends on negotiations with the Hinduja Group.
The official who spoke on condition of anonymity also said that the ONGC would rather than joint work at the projects with Hinduja establish a consortium.
The OVL, Hinduja Group, and Petronet LNG of India in order to cooperate in the expansion process of the gas field in Iran and get involved in Iran’s LNG projects have singed two local general agreement contracts with the Iranian officials on December 2, 2009.
The report adds that the contract on implementing the projects has been signed during the visit of the Iranian Deputy Petroleum Minister Seifollah Jashnsaz and would probably be finalized by the end of March 2010 between the Indian and the Iranian companies./end
