IOC is also said to be looking into setting up an LNG terminal in Ennore, India.
IOC chairman M.S. Ramachandran confirmed his firm and Iran’s National Iranian Oil Co (NIOC) have had initial talks over the venture.
“We will give a proposal to NIOC in February,” Ramachandran said. He also said his firm will negotiate the price with NIOC at that stage.
The Iranian venture is the company’s first ever international upstream project and IOC will form an alliance with an Indian upstream company. Oil India Ltd (OIL) expected to be given the nod, according to the Economic Times report.
According to the newspaper, the gas exploration project and the LNG terminal will cost around US$5.7 billion. IOC will hold a 40% stake in the block with Iran’s Petropars holding the balance. IOC is expected to hold a 60% stake in the LNG terminal.
