Hindujas, ONGC lead $20 bn investment in Iran, India

NEW DELHI: Hinduja Group is on the verge of concluding nation's biggest energy deal for developing oil and gas fields in Iran and setting up a refinery and LNG terminal in India involving a total investment of $20 billion.

Hindujas, together with state-run ONGC's overseas arm ONGC Videsh Ltd, will court Iranian firms to invest eight billion dollars in developing the 40 billion barrels Azadegan oilfield and Phase-12 of the giant South Pars gas field.

Switzerland-registered Naftiran Intertrade Co, a unit of National Iranian Oil Co, has been offered a stake in the 15 million tons oil refinery, one million tons petrochemical plant and 7.5 million tons LNG receipt facility planned by Hinduja-ONGC at an investment of over $10 billion at either Kakinada in Andhra Pradesh or Mangalore in Karnataka.

Sources said an Iranian delegation comprising heads of Petropars, the subsidiary of NICO that has been awarded development rights for South Pars Phase-12, and PetroIran, another subsidiary of NICO that owns 90 per cent development rights of Azadegan oilfield, today made considerable progress towards concluding project agreements with Hindujas-OVL.

The Indian consortium of Hinduja Group and OVL will get 60 per cent stake in development of South Pars Phase-12 and just over 50 per cent in Azadegan field, they said, adding a contract for the same will be signed within two months.

Azadegan field will produce 150,000 barrels per day of oil in first phase that would double subsequently, while South Pars Phase-12 will produce 12 million tons of gas that will be converted into LNG at a two-billion dollar facility.

Hinduja-ONGC have sought supply commitment for the entire oil produced from Azadegan field and 7.5 million tons of LNG from South Pars Phase-12.