ONGC is likely to acquire 20-25 per cent stake in an Iranian gas field while it awaits Tehran's nod for its plan to develop a gas field it had discovered two years ago.

According to sources, ONGC Videsh Ltd (OVL), the overseas arm of ONGC, is likely to discuss participation in the development of Phase-12 of the South Pars gas field, when officials of Iranian national oil firm visit the country in December 2009.

The gas field entails an investment of $7.5 billion (approx Rs 34,500 crore) and has attracted Hinduja Group's interest as well.

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Addendum:

On 1 December 2009, ONGC and the Hinduja Group signed preliminary deals to pick up stakes in two major projects in Iran. ONGC inked MoA (memorandum of agreement) for an over 20 per cent share in Iran LNG, and Phase 12 development plan for the South Pars gas field in the Persian Gulf. The Hinduja Group, too, signed a separate deal to share the South Pars stake.

Together, both the companies are expected to get 40 per cent in the South Pars project and ONGC 20 per cent-plus in Iran LNG.