Monday, June 13 2005 22:37 Hrs (IST) - World Time -

Tehran: India today (Jun 13, 2005) signed a $22-billion contract to import five million tonnes of liquefied natural gas (LNG) per annum from Iran beginning 2009-10 and struck deals to invest in oil and gas fields and petrochemicals plant in the oil rich Persian Gulf nation.

The Gas Sales and Purchase Agreement (GSPA) for import of five million tonnes per annum of LNG at Dahej in Gujarat and Kochi in Kerala beginning second half of 2009-10 was signed by a consortium of Indian state-run firms and National Iranian Gas Export Company (NIGEC).

Iran also agreed to give ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), a 10 per cent share in the development of Iran's biggest onshore oilfield Yadavaran and a 100 per cent interest in the 30,000 barrels per day Jufery field in lieu of the LNG purchase.

The 10 per cent share in Yadavaran would translate into 30,000 barrels per day of crude oil for India. OVL will get an additional 10 per cent in Yadavaran upon India increasing LNG imports to 7.5 million tonnes per annum.

Separately, Tehran will give a block to Indian Oil Corp and its Iranian partner Petropars in the North Pars gas field in the Persian Gulf for production of natural gas, its conversion into LNG and export to India and other countries.

Additionally, GAIL (India) Ltd will team up with Iran's National Petrochemical Company (NPC) for setting up a one million tonnes per annum petrochemical plant in southern Iran for export of petrochemicals to India and other nations.

The two sides also agreed to form a Special Joint Working Group to expedite the implementation of the Iran-Pakistan-India gas pipeline.