NEW DELHI -- An Indian consortium, comprising ONGC Videsh Ltd. (OVL), Indian Oil Corporation and Oil India, will sign on December 25 a contract with National Iranian Oil Company for the exploration and production sharing of Pars oil field in Iran, off the Persian Gulf, local press reported here on Friday.

ONGC Videsh, the overseas investment arm of Oil and Natural Gas Corporation, will be the lead operator in the oil field, IRNA reported.

The Indian consortium has been awarded as part of Iran's tendering of the Pars field which holds huge oil and gas reserves.

The Indian consortium has proposed to spend approximately 1.3 billion rupees over the next four years on drilling activities.

The Pars field, which has already two wells spewing oil, is estimated to have a hydrocarbon reserve equivalent to 500 million barrels of crude.

The Iranian field covers an area of 3,500 square kilometers with depths in the range of 20-90 meters.

An ONGC-reliance consortium has also bid for one onshore oil field in Iran. ONGC Videsh is also looking at oil and gas fields in Sudan, Oman, Libya, Yemen. India has already made huge investments in Vietnam and Russia's Sakhalin.

ONGC had worked in Iran earlier as part of the Iminoco consortium and discovered two offshore fields at Rokh and Rostam. The Iminoco consortium consisted of Hydrocarbons India (ONGC's overseas investment vehicle), Agip, Phillips Petroleum and NIOC.