New Delhi: ONGC Videsh Ltd and its partners Indian Oil Corp and Oil India Ltd have proposed an investment of about $5 billion in bringing to production a massive gas field they discovered in offshore Iran, in the next 3-4 years.

“OVL has submitted a development plan to the Iranian authorities. The investment proposed is around $5 billion,” a source said.

Iran had in September 2008 approved the commerciality of the discovery in the Farsi block. The discovery, which was subsequently named Farzad gas field, may hold 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 (LNG).

The source said Iran has so far not responded to the development plan which was submitted this month.

OVL and IOC have 40% stake each in the 3,500 sq km Farsi offshore block that was awarded to the consortium in 2002. OIL has the remaining 20%.

The three firms had also found oil on the block and in November 2008 submitted commerciality report of the discovery.

Iran has not yet approved the commerciality of the oil find, which may hold reserves of up to one billion barrel.

If the consortia gets the developmental rights, they will be paid a 15% rate of return over and above the investments they make.