ONGC discovers new oil field in Iran

DUBAI: India’s Oil and Natural Gas Corporation (ONGC) has discovered a new oil field in Iran, the website of Iran State television said.

“India’s ONGC has discovered a new oil field in the Farsi oil block of the Persian Gulf,” Mahmoud Zirakchianzadeh, the managing director of Iran’s State offshore oil company was quoted as saying.

“The Indian company will undertake the development of the newly discovered field upon determining that its development is economically feasible,” he observed. Based on the ONGC’s technical studies, the capacity of the new oil field would also be announced, the official said.

Mr. Zirakchianzadeh pointed out that the new field could be developed concurrently with the Farzad B gas field, which is also located in the Farsi block. This gas field has estimated reserves of 12 trillion cubic feet.

The ONGC and the Indian Oil Corporation each have a 40 per cent participating interest in the Farsi block, while the Oil India Ltd. has a 20 per cent stake. The ONGC’s overseas arm, the ONGC-Videsh Ltd. (OVL) is involved in executing projects abroad. The ONGC had earlier announced plans to invest $3 billion with its partners to develop gas fields in the Farsi block. The consortium has reportedly already invested $ 90 million in the block.