ONGC Videsh (OVL) will be able to bid for upstream projects in Iran according to a list of qualified applicants uploaded on the website of the National Iranian Oil Co (NIOC).

OVL, the overseas investment arm of ONGC, is the only Indian company to have qualified to bid for projects in the country.

Speaking to BusinessLine, OVL Managing Director, Narendra Kumar Verma said, “OVL will seek to strengthen India’s footprint while exploring hydrocarbon reserves in Iran.”

Verma also said that this participation will be in addition to OVL’s existing participation in the development of the Farzad B gas reserve.

Iran is the world’s largest holder of natural gas reserves and is seeking participation from international players to develop the resources.

The list of qualified participants includes European giants such as Total, Shell, Eni and Gazprom as well as Asian players like CNPC, Inpex, KOGAS and Petronas. Some major newcomers, as listed by the NIOC, were Wintershall from Germany, Maersk from Finland, DNO from Norway and CEPSA from Spain according to a statement on NIOC’s website.

The country will be awarded reserves under a new format of oil sector contracts. A statement on the website noted that under the model, “NIOC will set up joint ventures for crude oil and gas production with international companies which will be paid with a share of the output. Also, different stages of exploration, development and production will be offered to contractors as an integrated package, with the emphasis laid on enhanced and improved recovery.”

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