ONGC Videsh targets 2 more blocks in Sudan

ONGC Videsh, the overseas arm of Oil and Natural Gas Corporation, is in talks to acquire stakes in two oil blocks in Sudan, where the company has its largest overseas oil production.

OVL already has stakes in three oil and gas blocks in Sudan. If it manages to buy a share in the two Sudan blocks, its presence in the total number of blocks will go up to 45. The company is present in 15 countries over the world.

"OVL is close to joining in a fourth block. It is also applying for a fifth, and possibly a six property," Sudan's Energy Minister Awad Ahmed al-Jaz said after meeting Petroleum Minister Murli Deora on the sidelines of the India-Africa Hydrocarbon Conference.

OVL is seeking a 30 per cent stake from Malaysian company Petronas in Block 8 in Blue Nile Basin, northeast of Sudan's Melut Basin.

Petronas Carigali Overseas has a 77 per cent interest in the block, while the remaining equity is shared between Sudan's national oil company Sudapet, which owns 15 per cent stake and High Tech Group with an 8 per cent stake.

OVL Managing Director R S Butola said the company had also shown interest in an unallocated 32.5 per cent stake in Block B, where French oil company Total is the operator.

Total has 31-32 per cent stake in the block that also has White Nile as a partner. However, 32.5 per cent in the block is yet to be allocated to any company.

Petronas had waived off its pre-emption rights to allow OVL to buy Austrian firm OMV's stake in blocks 5A and 5B in Sudan. OVL acquired OMV's 26.12 per cent stake in exploration block 5A and 24.5 per cent stake in block 5B for $115 million.

Petronas is the operator of Block 5A, while Sudan's national oil company Sudapet has the remaining 5 per cent. In Block 5B, Petronas has 41 per cent, Sudapet 10 per cent and Swedish oil firm Lundin Petroleum 24.5 per cent.

Blocks 5A and 5B are located in the Muglad basin and are adjacent to the Greater Nile Oil Project (GNOP), where OVL has a 25 per cent stake.

GNOP, which comprises blocks 1, 2 and 4, is currently producing 2,55,000 barrels of oil per day, while Block 5A, which includes the undeveloped Thar Jath field with gross proven and probable oil reserves of 149.1 million barrels, is producing 25,000 barrels a day.

India currently gets 3.2 million tonnes of crude annually from OVL's 25 per cent equity in GNOP in Sudan.

New Delhi has been encouraging oil companies to take equity stake in oil fields abroad to reduce import dependence and attain energy security.

Block 5B is a large block of 20,119 sq km and is located in the Sudd swamp. Gravity and seismic interpretation show the Muglad rift basin extends into block 5B and the structural style in the area is similar to the rest of the basin where over 1 billion barrels of oil have been discovered to date.

THE OVL STORY

OVL has presence in 43 blocks in 15 countries

In 14 blocks, it is the operator, in 3 a joint operator

It has the largest number of blocks in Myanmar (5) and Brazil (4)

It has 3 blocks each in Sudan, Vietnam, Libya and Nigeria

OVL is seeking a 30 per cent stake from Malaysian company Petronas in Block 8 in Blue Nile Basin