ONGC Videsh, the overseas investment arm of Oil and Natural Gas Corporation, will reassess its position to acquire rights for developing the Farzad-B gas block in Iran after the US sanctions kick in on November 4.

Speaking at the sidelines of an event to mark the GEO India 2018 conference, OVL Managing Director, NK Verma, said there has been no progress since the last field development plan for the Farzad-B gas block was submitted. “We have been in sleep mode with regards to Farzad-B. We will be assessing the next course of action after US sanctions on Iran come into effect on November 4.”

OVL had staked claim for developing the Farzad-B gas block since the last US sanctions on Iran. But started facing competition from global players once the sanctions were lifted. The situation is likely to be reversed again when the US sanctions are reinforced in November.

Verma said OVL has started production from its asset in South Sudan. “We started production from our block in South Sudan last week. The current production is 7,000-8,000 barrels per day. We hope to take it up to 20,000 bpd in the next three to four months.”

OVL is a consortium partner in Block-5A in South Sudan that is held by Sudd Petroleum Operating Company (SPOC). OVL has 24 per cent stake in SPOC, where other partners are Nilepet (42 per cent) and Petronas (34 per cent). Despite the promising prospects, OVL officials are apprehensive of listing on the exchanges.

“This is not the right time to list ONGC Videsh. We need to monetise a number of assets before we list,” a top OVL official said. “We want to bring our assets in Mozambique to production by 2022 before listing on the bourses,” the official added.

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