ONGC is reportedly examining the viability of investment in Iranian gas projects. The investment decision is to depend on the viability of the projects as established through detailed due diligence exercise to be carried out which includes aspect of liquefied natural gas (LNG) pricing.

Iran has offered Indian companies a 40 percent interest in the development of Phase 12 of its gas field South Pars in return for six million tonne of LNG.

A consortium of OVL, ONGC's overseas investment arm, holds exclusive exploration rights for the offshore Farsi block. ONGC and Indian Oil Corporation each own a 40 percent interest in the Farsi block, and Oil India holds the remainder.

The master development plan of the offshore Farzad-B gas field of Farsi Block was under finalisation in consultation with National Iranian Oil Company (NIOC). The companies plan an initial estimated investment of about $5.5 billion (approx Rs 25,575 crore) to develop the gas field and ship the LNG to India.

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ONGC eyes stake in South Pars gas field (27-Nov-09)