State-owned ONGC Videsh Ltd (OVL) lost development rights for the Farzad-B giant gas field in Iran to Iranian Petropars Group. OVL owns 40 per cent participating interest (PI) in the block in which gas discovery was first made by a consortium led by ONGC.
Indian Oil Corporation too owns 40 per cent of PI, with Oil India holding the remaining 20 per cent PI in the block. Issues in negotiations between OVL and Iranian authorities as well as US sanctions led to the failure of multiple negotiations between the company and Iranian regulators to finalise a development plan.
