Sudan offers three oil and gas blocks to India

Our Bureau Updated - January 19, 2018 at 05:53 PM.

Sudan owes ONGC Videsh $240 million from crude oil bought from Greater Nile Oil Project

Sudan has offered ONGC Videsh Ltd, the overseas investment arm of ONGC, three more oil and gas blocks for exploration and production.

The African country has also sought the help of Indian firms to set up a coastal refinery.

“They have offered more oil blocks for exploration and asked for Indian companies’ expertise to raise production from existing fields,” Dharmendra Pradhan, Minister of State (Independent Charge) for Petroleum and Natural Gas on the sidelines of the 4th India-Africa Hydrocarbons Conference here on Thursday.

The minister added that Sudan also wants Indian firms setting up a coastal refinery there.

The offer has been made by the visiting Sudanese Oil Minister Mohamed Zayed Awad.

The Sudanese minister added that Sudan has offered Blocks 8, 15 and 24 for exploration and production of oil, and has asked ONGC Videsh to consider buying a stake in producing Block 17.

Block 17 currently produces 7,000 barrels of oil per day.

Greater Nile Oil Project Sudan owes ONGC Videsh $240 million from the crude oil bought from the Greater Nile Oil Project, as well as unpaid lease for a pipeline.

ONGC Videsh had bought a 25 per cent stake in the project in 2003.

Its share of oil production from GNOP was 0.7 million tonne in 2014-15, a senior official of ONGC Videsh said.

ONGC Videsh ,along with Oil India, constructed a $194-million pipeline for refined products from the Khartoum refinery to Port Sudan in 2005.

Apart from an upfront payment, Sudan was to pay ONGC Videsh 18 equal half-yearly instalments from December 2005.

The Sudan government is yet to release seven half-yearly instalments due from June 2011 to June 2014.

Sudan now wants ONGC Videsh to take a stake in the producing Block 17 and raise production from the block to recoup its dues.

Published on January 21, 2016 17:53