KOLKATA (miningweekly.com) – A consortium of Indian oil and gas exploration and production (E&P) companies, led by ONGC Videsh, has submitted a revised development plan for the Faizad-B gasfield in Iran.

While details of the new development plan were not readily available, a senior ONGC Videsh official indicated that it was based on a combination of production sharing and contract services as per the Iran Petroleum Contract, a draft of which had been provided by the Iranian government to the Indian consortium.

“We are very optimistic over regaining the rights to develop the estimated 12.8-trillion cubic feet Faizad-B gasfield.

“The high-level Indian government delegation, which visited Tehran at the end of July, got a lot of positive signals that India’s bid to get back the gasfield would be favourably considered. The submission of the revised development plan was a direct result of talks held last month,” the official said.

However, he declined to elaborate on whether the revised development plan was based on any ownership entitlement of the block, as envisaged earlier, or whether the role of the Indian consortium would be purely as a developer–operator through a production sharing agreement.

Such details were still privileged and subject to the signing of a final contract, the official added.

Indian E&P companies had secured the rights to develop Faizad-B offshore block in the Persian Gulf in 2010 but the contract could not be executed owing to sanctions against Iran.

Following the signing of a landmark deal between the US, the UK, France, China, Russia, Germany and Iran, earlier this year, that prevents Iran from acquiring a nuclear weapon, and that brought an end to sanctions against Iran, India’s government feared that cash-rich Western oil companies would find it easier to secure the rights to the block and, hence, the Indian diplomatic offensive to maintain India’s interest in the asset, the official said.

The Indian consortium comprised ONGC Videsh, Oil India and oil refiner and marketer Indian Oil Corporation.