The overseas arm of India's Oil and Natural Gas Corp. submitted a revised plan to develop the giant Farzad B gas block in Iran, including a commitment to spend more than $3 billion, a senior executive said on April 4.
ONGC Videsh expects to produce between 1 billion cubic feet per day (Bcf/d) and 1.6 Bcf/d of gas in five years from the start of development of the block, N. K. Verma, the company's managing director, told Reuters in Mumbai on April 4.
India is the second-largest buyer of Iranian crude, and was among the few countries to continue trade with Iran while the country faced Western sanctions over its nuclear program.
But since the lifting of some of the sanctions last year, Iran has sought other investors, and there is some uncertainty whether the Farzad Block contract will be awarded to an Indian company. The impasse has led Indian refiners to plan on cutting imports from Iran by one-fifth in 2017-2018.
Verma also commented that ONGC Videsh expects to raise production during the fiscal year ending in March 2018 to 14 million tonnes of oil equivalent, up from 12 million tonnes in the fiscal year of 2017.
The company also plans to invest $45 million to produce from gas wells owned by Imperial Energy, which ONGC Videsh acquired in 2008.
"We are setting up gas processing facilities ... we have dug four pilot wells and have got encouraging response," Verma said.
Recommended Reading
Sangomar FPSO Arrives Offshore Senegal
2024-02-13 - Woodside’s Sangomar Field on track to start production in mid-2024.
NAPE: Chevron’s Chris Powers Talks Traditional Oil, Gas Role in CCUS
2024-02-12 - Policy, innovation and partnership are among the areas needed to help grow the emerging CCUS sector, a Chevron executive said.
CNOOC Makes 100 MMton Oilfield Discovery in Bohai Sea
2024-03-18 - CNOOC said the Qinhuangdao 27-3 oilfield has been tested to produce approximately 742 bbl/d of oil from a single well.
TPH: Lower 48 to Shed Rigs Through 3Q Before Gas Plays Rebound
2024-03-13 - TPH&Co. analysis shows the Permian Basin will lose rigs near term, but as activity in gassy plays ticks up later this year, the Permian may be headed towards muted activity into 2025.
Proven Volumes at Aramco’s Jafurah Field Jump on New Booking Approach
2024-02-27 - Aramco’s addition of 15 Tcf of gas and 2 Bbbl of condensate brings Jafurah’s proven reserves up to 229 Tcf of gas and 75 Bbbl of condensate.