Oil India, Partners May Invest $5 Billion in Iran Gas Block

Oil India Ltd., the nation’s second- biggest state-run explorer, said it may invest $5 billion with its partners to develop a natural gas field in Iran.

The expenditure on the offshore Farsi block may be incurred over seven to eight years and the grouping is in talks with the National Iranian Oil Co. over a contract to develop the field, according to Oil India’s share-sale document.

“We are still thinking whether we should invest and we are talking to Iran,” B.N. Talukdar, director of exploration, told reporters in New Delhi today. “It’s a lot of money. We can only get a service contract which offers a fixed rate of return.”

Oil India has a 20 percent share in the grouping. ONGC Videsh Ltd., the overseas investment arm of Oil & Natural Gas Corp., and Indian Oil Corp., the nation’s largest refiner, own 40 percent each.END