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Sudan government offers two oil and gas blocks to India

Sudan government offers two oil and gas blocks to India

Photo by Bloomberg

20th January 2014

By: Ajoy K Das

Creamer Media Correspondent

  

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KOLKATA (miningweekly.com) - Sudan had offered two oil and gas blocks to ONGC Videsh, the overseas arm of Indian exploration and production major ONGC Limited, through the government nomination route, an official in India’s Petroleum and Natural Gas Ministry said.

The official said that the two blocks, the inland Block B and offshore Block 15, had been offered to ONGC Videsh following a meeting between India’s Oil and Natural Gas Minister, Veerappa Moily, and Sudan’s Petroleum Minister, Hatim Abuelgasin Mukhtar M Elamin, last week.

ONGC Videsh would have 100% rights of investments in the blocks in Block B, which were reported to have established oil reserves, while Block 15 was at the exploratory stage, the official said.

The offer from the Sudanese government was consistent with the strategic interests of India in the African nation and in tune with ONGC Videsh’s existing investments, which saw the company in 2003 pick up a 25% equity stake in Greater Nile Oil Project, which held Blocks 1, 2 and 4 covering 49 000 km2 in the Muglab basin, the official added.

Meanwhile in neighbouring South Sudan, ONGC Videsh had completed evacuation of all its officials and closed down operations of oil blocks in that country following political violence.

ONGC Videsh, which had equity stakes in two oil blocks, had evacuated 11 officials working across the oil blocks. The company also held a 25% equity stake in Greater Pioneer Operating Company (GPOC) producing 37 000 bbb/d and another 25% in Block 5A producing 4 600 bbl/d.

"Following the deteriorating security situation in South Sudan since December 2013, the Joint Operating Companies decided to temporarily shut down the operations in their oilfields," an official statement said.

A company official said that the shut down of operations was done methodically to ensure resumption of operations as soon as security concerns were allayed and the situation in South Sudan normalised.

Other partners in GPOC included China National Petroleum Corporation, with a 40% equity  stake, Petronas of Malaysia, with 30% and Nilepet of South Sudan with 5%.  In Block 5A, Petronas had a 67.875% stake, while Nilepet owned 8%.

Edited by Esmarie Iannucci
Creamer Media Senior Deputy Editor: Australasia

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