LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS

Read in App
Business News » India News

Haven't heard from Iran on $11 bn offer for gas field: OVL

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Mon, Oct 09, 2017
03:19 pm
PTI
RELATED NEWS
Expert Views: BIG! India's retail inflation eases to 4.59% in December Expert Views: BIG! India's retail inflation eases to 4.59% in December
Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands
Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED
Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED    Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED
Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY! Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY!

ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), today said it hasn't heard from Iran on the USD 11 billion 'best offer' it gave for developing the Farzad-B gas field.

"We are ready to invest provided we get reasonable returns," OVL Managing Director Narendra K Verma told reporters here.

OVL has offered to invest about USD 5.8 billion in developing the Farzad-B gas field and another USD 5 billion to build a liquefied natural gas export facility, he said.

Iran wants a high price of the natural gas, making the investment practically unviable.

"We will get the project the day we accept their conditions. But for me to go ahead and make such investments, it has to bring reasonable returns and making economic sense," he said without elaborating.

Iran had earlier this year signed initial pact with Russia's Gazprom for developing the OVL-discovered gas field of Farzad B but has kept the door open for awarding it to the Indian firm.

"We have given them our best offer. Now, it is up to them to agree or not agree," Verma said.

With Tehran delaying the award of rights to develop the 12.5 trillion cubic feet gas field to its discoverer ONGC Videsh Ltd India decided to cut oil imports from Iran by a fifth in 2017-18.

Iran retaliated by first cutting by one-third the time it gave to Indian refiners to pay for oil they buy from it as also raising ship freight rates, and then by signing a memorandum of understanding (MoU) with Russian gas monopoly Gazprom.

Farzad B was discovered by OVL in the Farsi block about 10 years ago. The project has so far cost the OVL-led consortium, which also includes Oil India Ltd and Indian Oil Corp (IOC), over USD 80 million.

The field in the Farsi block has an in-place gas reserve of 21.7 tcf, of which 12.5 tcf are recoverable. New Delhi is keen that the gas from the field comes to India to feed the vast energy needs.

Sources said Indian refiners have cut oil imports from Iran by a fifth to 190,000 barrels per day (bpd) in 2017-18 from 240,000 bpd in the previous fiscal.

Iran, India's third biggest oil supplier, used to give a 90-day credit period to refiners like Indian Oil Corp (IOC) and Mangalore Refinery and Petrochemicals Ltd (MRPL) to pay for the oil they would buy from it.

Now, Tehran has reduced this to 60 days, essentially meaning that IOC and MRPL would have to pay for the oil they buy from Iran in 60 days instead of previous liberal term of 90 days, sources said.

Iran oil sale terms were the most attractive for Indian refiners. Besides, a liberal credit period, it also shipped the oil to India for a nominal 20 per cent of normal ocean freight.

Other Middle-East sellers offer not more than 15-day credit period.

Sources said National Iranian Oil Co (NIOC) has also decided to cut the discount it offers to Indian buyers on freight from 80 per cent to about 60 per cent.

 

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
RELATED NEWS
Expert Views: BIG! India's retail inflation eases to 4.59% in December Expert Views: BIG! India's retail inflation eases to 4.59% in December
Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands
Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED
Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED    Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED
Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY! Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY!

LATEST NEWS

Tata Power Solar wins Rs 1,200 crore order to set up 320 MW project from NTPC

Chinese telecom giant Huawei ropes in former Brazilian President Michel Temer to advise on 5G

7th Pay Commission: Don't Miss! What government employees should know about salary hike, DA release, arrears clearance

Traffic violations fine: NEVER EVER drive on wrong side of the road in this city, you may lose your driving licence permanently

Mumbai fake gold case: Gang dupes jewelers

ECI to launch Digital Voter-ID cards on National Voter's Day

Microsoft roll back Xbox Live Gold price hike after backlash from gaming community

Climate change chalenges! Boeing to deliver commercial planes on sustainable fuels by 2030

7 planets orbiting TRAPPIST-1 may be made of similar stuff

7th Pay Commission latest news today: Massive pay plus dearness allowance, house rent allowance; Details of this 7th CPC central government offer at upsconline.nic.in

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved