ET: ONGC Videsh Ltd Submits $10 billion Proposal to Iran for Farzad-B Gas Field

ONGC Videsh, the overseas arm of the state-run Oil and Natural gas Corp, is on course to meet its production target of 20 million metric tonnes of oil equivalent (MMtoe) by 2018-19, its managing director has said, banking mainly on the recent stake buy in a Russian field, hopes of receiving the rights to develop Farzad field in Iran, and more acquisitions.

"We will be able to meet our targets," N K Verma, managing director, said. In the last fiscal year, ONGC Videsh produced 8.87 MMtoe, barely 6 per cent more than in 2013-14. But a 15 percent stake purchase in the Vankor field in Russia, announced a fortnight back, will substantially add to the company's current year production. Its share from the Vakor field will be about 66,000 barrels daily, almost 40 percent of ONGC Videsh's total output, Verma said.

ONGC Videsh is also hoping to get the rights to develop and produce from the Farzad field in Iran. The company has submitted an integrated development plan for the field, including the production and the evacuation plan, to the Iranian authorities, Verma said, adding that the Iranian officials will be in India in a couple of weeks to discuss the fine prints. If ONGC Videsh gets to develop these fields, it would take 3-4 years to bring it to production. MORE