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Asia: India's OVL says no time limit given for Iran South Pars deal

Asia: India's OVL says no time limit given for Iran South Pars deal

Write: Craig [2011-05-20]
p>India's ONGC Videsh Limited has not been given any time limit in which to decide on South Pars, OVL Managing Director R.S. Butola said Monday on the sidelines of Petrotech 2010 in New Delhi.

He was replying to questions on media reports that Iran had given the ONGC-Hinduja consortium two months to decide on a stake in South Pars.

"We respect South Pars CEO but we have not been given any time limit," Butola said. "Why should it be December, if it is November then we will work towards it," he added.

Platts reported in December last year that OVL, upstream oil company ONGC's overseas investment arm, and diversified private conglomerate Hinduja Group had inked a deal to buy a 40% stake in phase 12 of Iran's giant South Pars gas field. Quoting local news agency Press Trust of India, Platts
reported that the consortium would pay $7.5 billion for the stake.

At that time, ONGC Chairman R.S. Sharma had said that it had not been decided how the 40% stake would be split between members of the consortium, though Hinduja said it would be an equal division.

The Iranian oil ministry's news agency Shana on October 24 reported that Venezuela would invest $780 million in the development of phase 12 of South Pars following an agreement with Venezuela's state-owned PDVSA.

"So far $2.3 billion has been spent on the project," project director amid Akbari was quoted by Shana as saying. He had then added that two Indian ompanies were also interested in taking part.

Angola's state-run oil company Sonangol, the only foreign partner volved in the South Pars project so far, holds a 20% share. The Iranian oil inistry's investment arm, Naftiran Intertrade Co. holds the remaining 80%.

Iran, hit with a series of international sanctions over its on-compliance with calls to halt its nuclear program, has turned increasingly o non-Western oil and gas companies for investment as the big multinational ompanies have pulled out.

Phase 12 of South Pars will produce 3 Bcf/day of gas and will provide eedstock for the country's first liquefied gas plant, Iran LNG, which as been designed for two sweetening and liquefaction units, each with a production capacity of around 5.4 million mt of LNG on an annual basis.


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