India and Iran have agreed in principle to formulate a package of importing 5 MMT LNG in phases from Iran to India. In return, Iran would examine the prospects for Indian PSUs like OVL to participate in discovered and semi-discovered oil and gas fields in Iran.This understanding was reached between the two countries after three-day discussions in Tehran during the first meeting of Indo-Iran joint working group on hydrocarbon sector. The discussions were followed by the signing of minutes of the meeting in the presence of Petroleum Minister Ram Naik and his Iranian counterpart Bijan Namdar Zanganeh.The LNG project envisaged would have a period of 25 years. The details of the agreement would be discussed later and the discussions would be completed within next 6 months. The Gas Sale Purchase Agreement would be signed within nine months of the arrival of the agreement and the project completed within next four years. The cooperation in LNG import and participation in discovered fields would be developed into a package jointly. The minutes signed also envisage the participation of GAIL in development of CNG network in Tehran. A term contract for 5 MMT of crude oil import to India was signed by MS Ramachandran, Chairman IOC and Ghamini Ford, MD National Iranian Oil Company.
