ONGC to buy 11% in two Sudan blocks
By siliconindia | Thursday, 22 January 2004, 08:00 Hrs
NEW DELHI: ONGC Videsh Ltd, the overseas arm of Oil and Natural Gas Corp, will acquire 11 per cent stake in a 744 million barrel oil field in Sudan for $125.4 million. "The Cabinet Committee on Economic Affairs cleared the proposal last evening," Petroleum Minister Ram Naik told reporters on the sidelines of an IEA seminar. OVL will buy out six per cent stake of Gulf Petroleum Corp of Qatar in Block 3 and 7 for $68.4 million and UAE's Al-Thani Group's five per cent stake in the field for $57 million. Naik said CCEA has also decided that the total exposure of OVL in Sudan will not exceed $1 billion. OVL had previously acquired Talisman Energy Plc's 25 per cent stake in 260,000 barrels a day Greater Nile Oil Project for $699 million and recently it acquired a quarter of share in Blocks 5A and 5B for $136 million. "The technical issues in this will be sorted out between the ministries of petroleum and finance," he said. Exploration Block 3 and 7, in eastern Malut basis of Sudan, are estimated to go on production from 2005 and reach 10 million tonne per year. "India's take from the blocks will be over 1 million tonne of crude oil annually," Naik said. Block 3 and 7 have Petronas of Malaysia (40 per cent stake) and China National Petroleum Corp (41 per cent) as majority stake holders. Sudapet (Sudan National Petroleum Corp) also has eight per cent stake.