OVL drops plan to build Iran LNG facility

OVL drops plan to build Iran LNG facility

Context:

ONGC Videsh Ltd. has dropped plans to build a $5 billion LNG export facility in Iran

Details:

• ONGC Videsh Ltd. has opted to only invest in developing a giant gas field in the Persian Gulf for which the revised cost is being worked out
• In 2017, OVL, the overseas arm of state-owned Oil and Natural Gas Corporation (ONGC), had made its ‘best’ offer to spend $11 billion in developing the Farzad-B field in the Persian Gulf as well as in building the infrastructure to export the gas
• However, Iran had dithered on awarding rights for the field to the Indian firm owing to differences over investments and price of gas.
• The company has now agreed to do just the upstream field development part, leaving fuel marketing to Iran, the official said.
• As had been agreed during the visit of Iranian President Hassan Rouhani in early February, a team of OVL officials will be visiting Tehran to discuss modalities of the upstream development.