State-owned ONGC Videsh Ltd. (OVL) of India is reported to have dropped plans for a gas-liquefaction project in Iran in an apparent effort to advance development of Farzad B gas field.
OVL operates a group that discovered the offshore field under an exploration service contract with National Iranian Oil Co. that expired in 2009, after the field was declared commercial.
The group, which also includes state-owned Indian Oil Corp. Ltd. and Oil India Ltd., has been unable to win development rights. Last year, it proposed investment of $11 billion to develop the field and related export facilities.
According to press reports in India and Iran, OVL has agreed to concentrate on field development and leave export planning to Iranian authorities.
OVL is reported to want to drill an appraisal well to reassess cost, one of the items of disagreement in development negotiations.
