A consortium of OVL, Oil India Ltd and Indian Oil Corp had discovered the 12.8 trillion cubic feet of gas reserves in the Farsi block in 2008. The discovery was named Farzad-B, PTI reported.
"In April, we met in Iran and as per discussions, we have worked out a fully integrated proposal and submitted to Iranian authorities," OVL Managing Director Narendra K Verma told reporters in New Delhi.
Iran, he said, had asked for a plan for developing the field as well as options for taking the gas.
"Fully integrated proposal with lots of options has been submitted," he said, adding that OVL has invited Iranian officials to India for discussions on the proposal.
Gas produced from the field can either be converted into LNG by freezing at sub-zero temperature and shipping in cryogenic ships to India or transported through a pipeline — either overland passing through Pakistan or sub-sea.
Iran and six world powers in July sealed an accord to modify the Islamic Republic's nuclear program in return for ending sanctions, opening prospects of Indian investments in the Persian Gulf field.
OVL in August/September 2010 submitted a revised Master Development Plan (MDP) for producing 60 percent of the 21.68 trillion cubic feet of in-place gas reserves but had not signed the contract because of threat of being sanctioned by the US which is against any company investing more than $20 million in Iran's energy sector in any 12-month period.
Iran, in February 2012, issued a one-month ultimatum to the OVL-led consortium over the development of a gas field.
To pressurize India to act, Tehran last year put the field on the list of blocks it wants to auction in future. It has, however, not yet cancelled OVL's exploration license for the Farsi block which gives it the right to develop the discoveries it has made.
Verma said since Indian companies had made the discovery, they naturally had the first right to develop them.
"They had asked for a development plan and as also a plan on how the gas produced is to be used... We have submitted an integrated proposal to them," he added.
Iran, he said, has given a draft contractual regime under which Indian firms have to operate.
OVL and IOC hold a40-percent interest each in Farsi block, while the remaining 20 percent is with OIL.