India in talks with Sudan block partners for sourcing more oil

Wednesday, 02 April 2003, 20:30 IST
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NEW DELHI: India is in talks with its Chinese and Malaysian partners in the Sudan block, in which state-owned ONGC Videsh Ltd (OVL) has a 25 percent stake, to source the total 12 million tonnes annual oil output. "OVL has already initiated talks of acquiring additional oil from the Chinese and Malaysian partners who are not shipping their share of crude to their countries. Certainly as partners they may like to give us their share of crude at market prices," Petroleum Minister Ram Naik told reporters here Tuesday. India last month completed the payment and other formalities to acquire Canadian Talisman Energy's 25 percent stake in a producing oil field known as the Greater Nile Oil Project. The project consists of four blocks in the Muglad Basin and a 1,500 km pipeline from the producing fields to Port Sudan on the Red Sea. It currently produces 12 million tonnes of oil annually (240,000 barrels per day) from the 600-1200 million barrel Heglig and Unity fields. The oilfield has estimated reserves of over 150 million tonnes with a potential of even more oil and gas in the block. India's 25 percent stake in the project entitles it to get three million tonnes of oil. The other partners in the project are the Chinese National Petroleum Company with a 40 percent stake, the Malaysian National Oil Company Petronas with 30 percent and the Sudan National Oil Company with five percent. "Beyond the price aspect (of transportation), if the other partners agree to the proposal, our concern for guaranteed crude source gets reduced," Naik said. India is dependent on oil imports for 70 percent of its needs. India's share of three million tonnes crude is nearly 10 percent of the indigenous production. In view of the volatility of crude prices and the uncertain situation in the Middle East because of the Iraq war, India is keen to secure guaranteed supplies. "We are planning to bring the first consignment of oil from Sudan soon to Mangalore as the crude has been found suitable for our refineries," Naik added. Commenting on the Iraq war, Naik said, "though the war is not being fought in our country, it is going to have a lot of impact on our economy."
Source: IANS
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