Talks to Greater Nile Oil Project partners to ensure steady supplies for country
ONGC Videsh Limited (OVL) is talking to its two other partners in the Greater Nile Oil Project (GNOP) in Sudan for the purchase of their share of crude oil to ensure supplies for India during the ongoing war in Iraq.
"OVL is talking to Petronas of Malaysia and the Chinese National Oil Company to buy their share of crude oil from GNOP," Petroleum Minister Ram Naik said today.
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OVL recently acquired 25 per cent stake in the project from Talisman Energy of Canada for $720 million (Rs 3,600 crore).
The project produces around 12 million tonnes of crude every year. As OVL has 25 per cent stake in the project, its share comes to 3 million tonnes annually.
Cost considerations prevent Petronas and the the Chinese National Oil Company from supplying their domestic markets. Instead, they sell the crude from the project at international prices.
If OVL succeeds in striking a deal, India will have an assured supply of Sudan crude even though it will have to pay international price for it, Naik said.
The minister said that the first tanker carrying OVL's share of Sudanese crude is expected to reach the Mangalore port within a month. The crude will be processed at Mangalore Refinery and Petrochemicals Limited (MRPL).
The sweet crude oil from GNOP has a high demand in the market and is currently selling at about $30 a barrel.
Moreover, two new commercial discoveries have been added to the project during the period OVL carried out negotiations.
Naik also said that the government should be able to decontrol the gas sector before the end of this calendar year since the first parcel of liquefied natural gas (LNG) is expected to reach Indian shores in December.