NGC-Hindujas failed to clinch a deal worth $10 billion to develop South Pars phase 12 gas field and the Azadegan oil field after 2 days of intense negotiations. This was close on the heels of Mr. R.S. Sharma, Chairman of Oil and Natural Gas Corporation (ONGC) announcing in a press conference that ONGC would collaborate with the Hinduja group in oil and gas projects in Iran1. In return for the ONGC-Hinduja investment, Iran was to get a stake in the proposed ONGC refinery project in Andhra Pradesh and a 7.5 million tonne LNG terminal in Karnataka2. Managing director of ONGC Videsh Limited (OVL) refused to comment on the development though the Executive Vice-Chairman of Hinduja Group, India Subir Raha stated that the negotiations would still carry on. Reports indicated that the contentious issues of gas pricing, project costs and supply commitments from Iran were still to be resolved.

• 1. “Oil & Natural, Hindujas may spend $10 billion in Iran”, Bloomberg.com, January 2, 2008, at http://finance.google.com/finance?morenews=10&rating=1&q=BOM:500312
• 2. “ONGC Videsh, Hinduja fail to clinch Iran deal”, Sify.com, January 6, 2008, at http://sify.com/finance/fullstory.php?id=14585214