New Delhi: ONGC Videsh Ltd and its partners Indian Oil Corp and Oil India Ltd are likely to invest about $4 billion to start production from a massive gas field they discovered in offshore Iran, in the next 3-4 years.

“Iran had in September 2008 approved the commerciality of the discovery and the three partners are now in the process of preparing a development plan. Investments may be in the range of $4 billion,” an ONGC official said.

The discovery, which was subsequently named Farzad gas field, has inplace reserves of up to 21.68 trillion cubic feet (Tcf), of which recoverable reserves may be 12.8 Tcf.

The Indian firm want to liquefy the gas and ship it to India in the form of liquefied natural gas.

“The oil and gas will belong to the National Iranian Oil Co (NIOC). They have the marketing rights and we have requested them to allocate the gas to us for converting it into LNG,” he said.

OVL, which holds 40% interest and is the operator of the block, has also submitted a feasibility report for the one billion barrel oil discovery it made in 2006.

Oil was found in the BB structure in 2006, the discovery has been named Binaloud.

“Feasibility report of the oilfield has been submitted to the National Iranian Oil Company, Iran, on November 26, 2008,” he said.