The Hindu : Business : IOC to involve GAIL in Iranian venture

Online edition of India's National Newspaper
Wednesday, Dec 29, 2004

Business

Business

IOC to involve GAIL in Iranian venture

NEW DELHI, DEC. 28. Indian Oil Corporation will give GAIL (India) Ltd. a 10 per cent stake in the liquefaction plant it plans to set up in Iran for export of LNG produced from the gigantic South Pars gas field to India.

IOC, along with the Iranian firm Petropars, will develop one of the 28 phases of South Pars gas field, convert gas into the liquid form at the liquefaction plant and ship liquefied natural gas to India and other countries.

"GAIL will be given 10 per cent stake in the liquefaction plant in lieu of its offtake of one-third of 9 million tonnes of LNG planned to be produced from 2008-09,'' a top IOC official said.

IOC will hold 40 per cent stake in the development of the gas field with the remaining being with operator Petropars. In the liquefication plant, the IOC would have 60 per cent and Petropars the remaining 40 per cent stake. Of IOC's 60 per cent stake, GAIL is being given 10 per cent.

This follows GAIL chief, Proshanto Banerjee, lodging a protest with the Ministry of Petroleum over IOC going solo in the project.

"In the case of Iran, there was a clear understanding that every project was to be done in a consortium. IOC, ONGC and GAIL were to take consortium approach for oil and gas exploration and production, petrochemicals and LNG projects,'' Mr. Banerjee said.

— PTI

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