Iran is believed to be ready to offer 40 per cent stake in a giant gas field in the Persian Gulf to India’s ONGC Videsh Ltd, and NRI business conglomerate Hindujas.

On the second day of talks the two held with a delegation led by Iran’s Deputy Oil Minister and Managing Director of National Iranian Oil Co (NIOC) Seifollah Jashnsaz, sources said that Tehran offered 40 per cent interest in the development of Phase-12 of the South Pars gas field.

London-based Hinduja Group too was interested in the $7.5 billion South Pars Phase-12 (SP-12) project, but the two firms are independently pursuing the deal, the sources said.

Iran, the sources said, stated that it can offer a maximum 40 per cent interest in SP-12 to Indians and it was for OVL and Hindujas to decide among themselves how it would be split among them.

ONGC Videsh, the overseas investment arm of the state explorer Oil and Natural Gas Corp, was clamouring for 25-30 per cent, they said, adding that the remaining could be taken by Hindujas.

If talks conclude, an agreement may be signed.

Sources said OVL wanted liquefied natural gas (LNG) in return for its efforts in the project.

SP-12 is to produce 3 billion cubic feet per day of gas, two-thirds of which is to be converted into LNG for export.

OVL wants at least half of the 10 million tons a year of LNG to be produced from SP-12 project.

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