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India Wants More Oil Concessions in Sudan

Published:
2007-11-07
Author:
IANS
Source:
IANS
City/Country:
New Delhi

November 6, 2007 (NEW DELHI) — India’s overseas exploration company ONGC Videsh Ltd (OVL) has expressed interest in purchasing stakes in two more oil blocks in Sudan.

 

Sudanese petroleum minister Awad Ahmed Al-Jaz met Indian petroleum minister Murli Deora over breakfast Tuesday, just ahead of the start of the two-day India-Africa Hydrocarbon Conference, where OVL’s interest was conveyed to the Sudanese minister.

 

"OVL already has three blocks in Sudan and it has expressed interest in two more blocks," Al-Jaz told reporters after the meeting, adding, "The doors are open for Indian investment in Sudan."

 

OVL had first acquired 25 percent stake in Greater Nile Oil Project in 2003, whose current oil production is about 2.5 million barrels per day.

 

It also has a 24.1 percent in Block 5A, in which OVL’s production share is 0.27 million metric tonnes.

 

OVL’s third asset is in Block 54 where it holds 23.5 percent with the biggest stake being held by Malaysian oil major Petronas. This block is still being explored.

 

OVL managing director R.S. Butola identified the two new blocks that the company is eyeing as Petronas-operated Block 8 and French oil major Total-operated Block B.

 

According to Butola, India is likely to get a share in the blocks through Sudan’s state-run oil company Sudapet, which has a stake in each block.

 

OVL is looking to pick up about one-third stake in Block 8, and about 32.5 percent in Block B.

 

While India does not have any presence in the Sudanese downstream sector, Indian Oil Corp had entered into a consultancy service agreement for maintenance and inspection for pipelines for Greater Nile Petroleum Operating Co Ltd.