ONGC's 2nd field in Sudan starts pumping oil

Oil and Natural Gas Corp's (ONGC) 2nd oilfield in Sudan has began crude oil production with output expected to reach 50,000 barrels per day by year-end.

Sudan's Block 5A, where ONGC's overseas arm ONGC Videsh (OVL) has 24.15% stake, began oil production on June 26, a company official said.

"Currently, Thar Jath field in Block 5A is producing 38,000 barrels per day (bdp) but we hope to stabilize production to 40,000 bpd very soon. Mala field in the same block would come to production in 2007 with an output of 10,000 bpd, which would rise to 20,000 bpd by 2008. Our share from the entire 5A output would be 15,000 bpd," the official said.

OVL currently has 25% stake in Sudan's Greater Nile Oil Project (Block 1, 2 and 4), which produces 280,000 barrels per day.

The Thar Jath field is located about 900km south of Khartoum within the prolific Muglad Basin. Crude oil from Thar Jath will be exported from Thar Jath through a 172-km export pipeline, which links the Central Processing Facilities (CPF) to the existing GNOP pump station at Heglig. The first produced oil from Block 5A will reach Port Sudan in August for its first commercial lifting, the official said.

With Thar Jath, OVL now has five producing overseas assets, the others being GNOP in Sudan, Sakhlain-I in Russia, Syria and Vietnam.