The government has formed a consortium, comprising Gail (India) Limited, Indian Oil Corporation and ONGC Videsh Limited, to look into Iran's offer of a stake in the South Pars gas field.

"OVL is going through the data on the gas field. Based on its findings, we will take a decision on acquiring a stake in it," Proshanto Banerjee, chairman and managing director, Gail, told Business Standard.

Sources said the offer for an equity in the field was made by Iranian authorities during Petroleum Minister Ram Naik's visit to the country in May. Naik was even taken to the field for an inspection.

However, the sources said the offer comes with a rider. India may be offered a stake in the field only if it agrees to purchase liquefied natural gas from Iran. Though this condition was not spelt out in so many words, the message was quite clear, the sources added.

The 3,700-square km South Pars gas field, which is an extension of the Qatar north dome gas field, is located 105 km southwest of the Assaluyeh port in the Persian Gulf. It has an estimated 14 trillion standard cubic metres of in-pace gas reserves and 18 billion barrels of condensate in multiple strata.

The National Iranian Oil Company has decided to develop the field in phases to secure the increasing internal demand for natural gas. The country also plans to use it for re-injection in its oil fields and export.

OVL also has a 45 per cent stake in a gas block in Vietnam, which is expected to yield 58 billion cubic metres of gas. The total plateau production from the project is estimated to be about 7.54 million standard cubic metres per day.

OVL also has a 20 per cent stake in a gas block in Myanmar, which is at an exploration stage, and is expected to have large supplies of natural gas.

Gas offer

• The offer for an equity in the field was made by Iranian authorities in May
• It has an estimated 14 trillion standard cubic metres of in-pace gas reserves and 18 billion barrels of condensate in multiple strata
• India may have to agree to purchase liquefied natural gas from Iran in return