ONGC to build $1.2bn refinery in Sudan
ONGC to build $1.2bn refinery in Sudan
NEW DELHI: Malaysia's Petronas had given state-run ONGC a tough time while acquiring a stake in Sudan's Greater Nile Oil project. Nearly three years later, India's flagship explorer has taken sweet revenge by elbowing out Malaysian firms from a $1.2 billion refinery project in the African country.
ONGC will set up the refinery at Port au Sudan with a capacity to process 100,000 million barrels a day, aimed at exporting products to deficit south and east African economies.
The job had initially been given to Malaysian firms but Khartoum later changed its mind in favour of ONGC, which is also laying a 741-km product pipeline from the Khartoum refinery to Port au Sudan.
ONGC will finance the project on a non-recourse basis. This means that the investment risk will not impact the company's books and investors are putting in money because ONGC says it's a good project.
"This will be the largest non-recourse finance ever raised by an Indian company. We are getting Indian and European banking and financial institutions to fund the projects,": ONGC chairman Subir Raha said on Wednesday, on the sidelines of a conference on corporate social responsibility. ONGC will build refinery on a BOT (build, operate, transfer) basis and is expected to complete the project in about 32 months from the signing of a formal concession agreement.
The pipeline will cost $200 million, and will wheel petrol, diesel and other white products like kerosene and fuel oil for exports from the Khartoum refinery to Port au Sudan.
The Times of India
- Database Search
- Unpaid Debt A comprehensive overview of the role of the Lundin Consortium in the oil war. ECOS calls upon the Swedish, Austrian and Malaysian governments to investigate whether, as a matter of international law, Lundin, OMV and Petronas 'were complicit in the commission of war crimes and crimes against humanity by others during the period 1997-2003.’ In response, the Swedish Public Prosecutor for International crimes opened a criminal investigation into ‘links between Sweden and the reported crimes’.
- In Depth For more specific information about the Lundin court case please visit the Unpaid Debt dossier.
