24-11-04 Tehran has conditioned Indian companies' partnership in Iran's oil development projects on purchase of LNG.
Deputy Oil Minister for International Affairs Mohammad Hadi Nejad-Hosseinian said that Iran would give a 20 % stake to Indian enterprises in the project for development of its southern Yadavaran oil field in exchange for purchase of 5 mm tpy of LNG for a period of 25 years.

Under a buy-back contract Iran would offer 60,000 barrels of crude oil to India a day, said the official. Nejad-Hosseinian said, however, that Iran and India would continue their discussions about gas swap and pricing as well as Indians' partnership in the project for development of Yadavaran oil field, adding that New Delhi should purchase 7.5 mm tons of LNG in all from Iran a year if it is willing to have turn in development of Jafiroil field.
He said two committees had been formed to determine the price of the gas Iran would deliver to New Delhi.

The official said Tehran will begin similar discussions withBangkok for export of 2.5 mm tons to 5 mm tons of LNG to Thailand a year and Thai companies' partnership in development of Iran's oil fields. He said Thai energy minister is scheduled to visit Tehran in December for the purpose. He said Chinese companies are in talks with Shell to draft a master plan for development of Yadavaran oil field.
Iran and India signed a deal in May for production of 5 mm tons of LNG under which Tehran and New Delhi would have shared experience in the compressed natural gas (CNG) and refinery reconstruction.

Indian Petroleum Secretary Sushil Chand Tripathy, leading a high-level delegation, arrived in Tehran on a two-day official trip. Tripathy is in discussions with Iranian officials on a number of issues, including a stake in an oil field in return for buying LNG, and all possible areas of energy cooperation with Iran.
Iran has offered to give Oil and Natural Gas Corporation (ONGC)'s overseas arm ONGC Videsh Ltd (OVL) a 20 % stake in its potential 300,000-bpd Yadavaran oil field, if India buys 5 mm tpy of Iranian LNG. It has offered LNG at a price of $ 2.57 per mm Btu and India is seeking a lower price. Indian Petroleum Secretary had said in New Delhi, "The price of LNG from Iran has to be lower than what RasGas (of Qatar) is offering us."

Iran has offered a 40-% stake to Indian Oil Corporation in a gas block in South Pars field.
"I would be discussing the deal with the Iranian authorities as the two companies have signed a memorandum of understanding (MOU) on this but the deal is yet to get government approval," Tripathi had said in New Delhi before leaving for Tehran.

The two companies also propose to build a liquefaction facility in Iran for LNG. The investment decision will be taken once necessary agreements are made with the National Iranian Oil Company.
The Indian official had told that the Indian delegation would discuss the modernization of Tabriz and Tehran refineries, the contract for which has been given to Indian Oil and Engineers India Limited (EIL).