DUBAI: India's energy partnership with Iran has begun to show results with a consortium led by the ONGC Videsh Limited (OVL) striking gas in an Iranian offshore block in the Persian Gulf.

Sources in the OVL told The Hindu that the gas was struck towards the end of March during the drilling of the fourth well in the offshore Farsi block. "Three wells had been dug earlier for finding oil. Drilling in the fourth well was purely for gas," a senior OVL official, who did not wish to be named, said. The rig involved in the drilling has been brought back to India on April 10. The gas find follows the consortium's success in tapping oil in November 2006.

"It can now be confirmed that we have been successful in prospecting for both oil and gas in the Farsi block," the sources said.

Officials pointed out that the findings so far have shown that the reserves of oil and gas in the Farsi block are sufficient for commercial forays. However, the full extent of the deposits can be established only after further investigations, including the digging of "appraisal wells," conclude. Ninety kilometres from the Bushehr port, the Farsi block covers an area of 3,500 sq. km. Bushehr, incidentally, is also the site where the Russians are collaborating with the Iranians for building a 1,000 MWan atomic power plant.

The OVL's success comes at a time when sections of the American establishment are actively discouraging New Delhi from collaborating with Tehran in several fields, including oil and gas. However, the Russians are tacitly encouraging energy tie-ups involving Iran and India.

Last week, the Tehran head of the Russian gas giant, Gazprom, Abubakir Shomuzov, said that Russia was keen to participate in the crucial Iran-Pakistan-India gas pipeline project. He advocated the extension of this pipeline to China.

Iranian officials say that the U.S. threat of disincentives to countries collaborating with Iran in the energy sector was exaggerated. They point out that Austria in late April had signed a $18 billion deal with Iran for the partial development of the giant South Pars field. The agreement involves shipping the gas to a proposed terminal in Croatia, from where it would be fed into Austrian and Italian pipeline channels.Analysts say that the Europeans have begun to see Iran as their strategic partner for gas. Because Iran could become a long-term provider of gas, collaboration with Tehran has begun to show, overriding the opposition from the United States and concerns about the Iranian nuclear programme.

Because Iran could become a long term provider of gas, tie-ups with Tehran are becoming visible, overriding the opposition from the United States and concerns about the Iranian nuclear programme.

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