State-owned Oil and Natural Gas Corporation (ONGC) proposes to clinch a deal with National Iranian Oil Company (NIOC) next week to pick up 20-25 per cent stake in phase-12 of South Pars gas field in Persian Gulf.

Top NIOC brass is visiting New Delhi next week where ONGC proposes to “conclude substantive discussion” in picking up oil equity in Persian Gulf.

R S Sharma, chairman and managing director at ONGC, told Bloomberg on Thursday that ONGC would discuss ‘specific opportunities’ with executives from NIOC next week. “In import-dependent countries like ours, we have to see where the future sources of energy supplies are,” Sharma said. “Iran, they have the second-largest crude oil and gas reserves and they are not very well exploited.”

The South Pars is a natural gas condensate field located in the Persian Gulf. It is the world’s largest gas field, shared between Iran and Qatar. At present, Petropars, the unit of NIOC holds rights for the field. The field's development has been divided into 28 stages.

Petropars is looking at partners for 60 per cent of its 100 per cent interest in SP-12. It has already identified companies from Venezuela and Angola for nearly 30 per cent stake. “OVL wants at least half of the remaining stake,” an offical at ONGC said, who didn't wish to be named. According to estimates, SP-12 will produce 3 billion cubic feet gas per day, out of which two-thirds will be converted into LNG for export.

In addition, OVL will also take forward the issue of getting development rights for offshore Farsi gas fields for which it has teamed up with Indian Oil Corporation (IOC) and Oil India Limited (OIL) and submitted a $5 billion development plan.

“The Indian companies and NIOC have not reached a final agreement on the Farsi field. OVL will focus on reaching a concrete status on the issue as they have already submitted the development plan,” the official said.

“If India gets these assets, it will be a good opportunity. It is a tough competition to get assets of this kind,” said Ajay Arora, partner and national leader, oil and gas at E&Y India.