The draft for developing the Farzad-B area has been submitted to Iranian Offshore Oil Company (IOOC), the designated authority for development of the field, on April 18, 2009.
Indian firms can purchase oil and gas and earn a margin on their production from the Farsi block. This can serve as a substantial source for India.
OVL’s commerciality report regarding the gas discovery has been granted by the National Iranian Oil Company on August 18, 2008. OVL hopes to begin gas production from the field in two years after grant of the development plan.
A consortium of three government-owned firms led by OVL had signed an exploration service contract for the Farsi block with Tehran in December 2002. OVL has a 40% interest in the field.
While Indian Oil Corporation Limited has a 40% stake in the property, Oil India Limited has 20%. OVL is the operator of the block. OVL had drilled four wells in the Farsi offshore block between 2006 and 2007. All wells discovered both oil and gas. Three of these wells have been discovered to hold oil and one gas.
