India was to have had 20% equity in the two fields in exchange for purchasing 5 million tons of Iranian LNG. However, in a recent announcement, the Iranian government has said India’s ONGC Videsh Ltd (OVL) would have to bid for the share with other foreign firms.
The mood, apparently and understandably, within the Indian government is not a happy one. According to insiders within the Indian government, “The Memorandum of Understanding signed between India and Iran in January last year stipulated that Tehran give OVL a producing oil field on a nomination basis in return for New Delhi purchasing 5 million tons of LNG.”
“Now Tehran is insisting OVL participate in the bidding process for the service contract of the Husseinieh-Kushk field. We need more clarity on the issue,” added the sources.