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CCEA to consider ONGC proposal to buy into Sudanese oil field
New Delhi, Jan 20: The Cabinet Committee on Economic Affairs (CCEA) is likely to consider today ONGC Videsh Ltd`s proposal to acquire 11 per cent stake in an oil field in Sudan for about USD 125.4 million.
New Delhi, Jan 20: The Cabinet Committee on Economic Affairs (CCEA) is likely to consider today ONGC Videsh Ltd's proposal to acquire 11 per cent stake in an oil field in Sudan for about USD 125.4 million.
OVL has proposed to buy out Qatar's Gulf Petroleum Corp's 6 per cent stake in block 3 and 7 for 68.4 million dollars and al-Thani group's 5 per cent stake in the field for USD 57 million, highly placed government sources said here.
Exploration block 3 and 7, in eastern Malut basis of Sudan, are estimated to hold oil reserves in excess of 3.5 billion barrels. Production from this field is expected to begin in 2005 and reach 10 million tonnes per year. Block 3 and 7 has Petronas of Malaysia (40 per cent stake) and China National Petroleum Corp (41 per cent) as majority stake holders. Sudapet (Sudan National Petroleum Corp) also has 8 per cent stake.
The CNPC-led consortium will bring to production blocks 3 and 7 in 2005 with an initial 170,000 barrels per day (8.5 million tonnes) on stream.
Sources said besides the upfront payment of $ 125.4 million, OVL's share of expenditure in development of the field over the next five years would be another $108 million. OVL will have to invest another USD 121.2 million for building a pipeline. The blocks cover an area of 72,000 sq. Km and 32 wells have so far been drilled which led to 11 discoveries till date.
OVL already has stakes in a 260,000 barrels per day producing field and two exploration blocks in Sudan.
Bureau Report
Exploration block 3 and 7, in eastern Malut basis of Sudan, are estimated to hold oil reserves in excess of 3.5 billion barrels. Production from this field is expected to begin in 2005 and reach 10 million tonnes per year. Block 3 and 7 has Petronas of Malaysia (40 per cent stake) and China National Petroleum Corp (41 per cent) as majority stake holders. Sudapet (Sudan National Petroleum Corp) also has 8 per cent stake.
The CNPC-led consortium will bring to production blocks 3 and 7 in 2005 with an initial 170,000 barrels per day (8.5 million tonnes) on stream.
Sources said besides the upfront payment of $ 125.4 million, OVL's share of expenditure in development of the field over the next five years would be another $108 million. OVL will have to invest another USD 121.2 million for building a pipeline. The blocks cover an area of 72,000 sq. Km and 32 wells have so far been drilled which led to 11 discoveries till date.
OVL already has stakes in a 260,000 barrels per day producing field and two exploration blocks in Sudan.
Bureau Report