ONGC Videsh Ltd, a fully owned subsidiary of Oil and Natural Gas Corp. Ltd, in association with Indian Oil Corp. and Oil India Ltd, is expected to start production of an Iranian oil field by 2012-13. The discovery of the Farzan oil field, made by an ONGC Videsh-led consortium, was approved by the Iranian government in September last year. The oil field is part of the Farsi block in the Persian Gulf. The partners propose to spend about USD 4 billion toward the development of the oil field and production. Work on a detailed project and development plan is in progress. The field is estimated to have resources of 21.68 trillion cu/ft, of which 12.8 trillion cu/ft is recoverable. ONGC Videsh, the operator of oil field and Indian Oil Corp. each hold a 40% stake in the project, and Oil India holds the remainder. The gas from the field will be liquefied and then transported to India and Kuwait as LNG. The consortium will have to apply to the Iranian government for permission to convert the gas into LNG.
