Oil India Ltd.

 

 

Date: 2002 - 2013

Deal: In 2002, Iran awarded development rights for the Farsi offshore oil and gas block to a consortium of Indian oil companies, including Oil India, the Indian Oil Corporation (IOC), and ONGC, according to Rigzone. Oil India holds a 20 percent stake in the Farsi Offshore Block (Rigzone, June 25, 2009).

The Tehran Times reported that in July 2009, the consortium had agreed to invest in developing the Farzad B gas field located in the Farsi block of the Persian Gulf (Tehran Times, July 26, 2009). According to The Economic Times, in September 2009, the consortium announced that it was dropping its plans to extract crude oil due to the high sulfur content it had discovered, opting instead to produce gas from the field (The Economic Times, September 16, 2009). However, according to an Indian news service, in 2009 the consortium submitted a master development plan for the gas field, which provided for an investment of $5 billion over a period of 7-8 years (PTI, September 15, 2009).

Regarding U.S. sanctions, a senior official from the consortium stated that "our investment in Iran has not even violated the U.S. law as OVL-IOC-OIL have not invested more than $20 million in any one year in exploring for oil and gas in Farsi block," according to an Indian news service (PTI, May 14, 2010).

According to its website, the consortium, led by OVL, was in discussions with the National Iranian Oil Company (NIOC) and Iran Off shore Oil Company (IOOC) regarding the project in 2010 (Oil India Limited Website - Chairman's Address, 2010).

NIOC was designated by the U.S. Department of the Treasury on November 26, 2008, for being wholly owned or controlled by the government of Iran (U.S. Department of the Treasury, November 26, 2008).

In February 2012, Iran issued OVL an ultimatum to commit and move forward with the Farsi block’s development after the companies missed an investment deadline in November 2010, according to the Indian press. In March 2013, Iran replaced the Indian consortium with the Iranian Offshore Oil Company (Times of India, March 27, 2013).

Ties to U.S. Business: According to USASpending.gov, Oil India Ltd. has not received any U.S. government contracts (USASpending.gov, accessed July 17, 2014).

Last Updated: July 17, 2014