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Date: 2002 - March 2013

Deal: In 2002, Iran awarded development rights for the Farsi offshore oil and gas block to a consortium of Indian oil companies, including the Indian Oil Corporation (IOC), ONGC and Oil India, according to Rigzone (Rigzone, June 25, 2009). ONGC manages its international activities through its foreign investment arm, ONGC Videsh, also known as OVL.

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 US 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).

In February 2012, Iran gave OVL a one-month deadline to sign its contract to develop the Farzad B field, according to the Indian press (PTI, February 6, 2012).

In August 2012, the Indian press reported that OVL was looking for Iran to pay a higher return on the $5-6 billion it plans to invest in Farzad-B to make up for the risk from sanctions (Economic Times, August 26, 2012).

In March 2013, The Wall Street Journal reported that Iran replaced ONGC and its partners with the Iranian Offshore Oil Company (IOOC) (The Wall Street Journal, March 26, 2013).

Date: December 2009 - Ongoing

Deal: According to an Indian news service, in December 2009, ONGC signed an agreement with Hinduja Group and Petronet LNG to develop phase 12 of Iran's South Pars gas field. In the deal, ONGC took a 40 percent stake in the $7.5 billion project (The Hindu, December 2, 2009).

Date: December 2009 - Ongoing

Deal: An Indian news service reported that along with its agreement to develop phase 12 of South Pars, ONGC also agreed to split a 20 percent stake in the Iran LNG gas liquefaction plant with Hinduja Group and Petronet (The Economic Times, December 2, 2009). According to the U.S. Government Accountability Office (GAO), the plant value is estimated at $4.35 billion (GAO Report, March 23, 2010).

U.S. Business Ties: According to, ONGC has not received any U.S. government contracts in the last 10 years (, accessed June 24, 2010).

Last Updated: July 17, 2014