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India to invest $750 mn in Sudan oil projects
Monday, 08 December 2003, 20:30 IST
NEW DELHI: India will invest $750 million in two oil projects in Sudan, Petroleum Minister Ram Naik announced Monday.
These are a 750-km pipeline and a refinery expansion project. Contracts for these are likely to be finalised in January, Naik told reporters after the first meeting of the India-Sudan joint working group (JWG) on the petroleum sector here Monday.
India is to also get equity stake in two oil exploration blocks.
Sudan Energy and Mining Minister Awad Ahmed El Jazz and his team discussed further details of Indian participation in Sudan hydrocarbon sector with Naik during the JWG meeting here.
"Sudan has agreed to give us on nomination basis two projects. One is the expansion and development of a refinery at Sudan Port and the second is a 750-km-long petroleum product pipeline. Both the projects would entail an investment of $750 million," Naik said.
The award of both the projects to state-owned ONGC Videsh Ltd (OVL), the overseas investment arm of Oil and Natural Gas Corporation (ONGC) would be finalised before the next meeting of the JWG in Sudan in January, Naik said.
The announcement of the two projects to India on nomination basis was made during President A. P. J. Abdul Kalam's visit to Sudan in October.
"Some preliminary work on the pipeline project has already been done," the minister disclosed.
Concluding his six-day visit during which he attended an energy conference in Goa, visited Bombay High and the Taj Mahal in Agra, El Jazz expressed hope that with Sudan set to sign a peace agreement with separatist guerrillas in the near future, "it will open the door for more Indian investment."
El Jazz disclosed that during his interaction with Indian industry representatives, several companies had expressed desire to invest in Sudan.
With Sudan expected to seek participation and investment in more exploration blocks to raise the oil production from 300,000 barrels per day to "500,000 barrels per day by mid-2005, we are interested to get more companies involved in Sudan," said El Jazz.
Scheduled to visit Sudan in January for the JWG meeting at the invitation of his Sudanese counterpart, Naik said the formalities for the award of equity stakes in two more exploration blocks 5A and 5B would be completed ahead of it.
The two new blocks are in the vicinity of Greater Nile Oil Project, in which OVL has acquired 25 percent stake.
OVL is set to acquire Austria-based OMV Aktiengesellschaft's 26.12 percent stake in 5A block and 24.5 percent stake in 5B block located in the Muglad basin.
On OVL's $670 million investment in the Greater Nile Project, Naik said as against the current production of 12 million tonnes annually, the oil block is expected to yield 15 million tonnes, further raising India's returns from the field.
"With a higher oil yield, India will now be recouping its investment from the Sudan oil field in less than three years besides getting oil," said Naik.
The minister disclosed that besides participating in the Sudan oil sector, India is providing $400,000 for healthcare facilities and IT education. In addition, with an investment of $38,000, India will provide know-how for modern farming to 300 families of farmers on 1,250 acres of land.
Around 60 Indians and 120 Sudanese are currently working on the Greater Nile project.
Source: IANS
Source: IANS