OVL shuts ops in South Sudan as security threats loom

Due to deteriorating security situation in the country from Dec 15, 2013, the Joint Operating Companies decided to temporarily shut down the operations

ONGC Videsh Ltd (OVL), the overseas arm of state-run oil marketing company, has decided to temporarily shut down its operations in South Sudan, owing to the deteriorating security situations in that country.

“The shutdown was executed methodically according to its standard shutdown procedure, ensuring the safety of personnel and equipment and smooth resumption of operations immediately after normalisation of the security situation,” the company said in a statement on Thursday.

The world’s youngest country landed into political turmoil after rebel forces loyal to removed South Sudanese Vice-President Riek Machar attempted a coup. This has led to the loss of many lives, including Indian soldiers in the United Nations peace keeping mission.

CHANGE OF PLAN

• The company has decided to temporarily shut down its operations in South Sudan, owing to the deteriorating security situations in that country
• The world’s youngest country landed into political turmoil after rebel forces loyal to removed South Sudanese Vice-President Riek Machar attempted a coup

 OVL is operating in two producing assets in South Sudan through its joint operating companies, Greater Pioneer Operating Company (GPOC) and SUDD Petroleum Operating Company (SPOC), with a participating interest (PI) of 25 per cent and 24.125 per cent respectively.

GPOC is producing close to 37,000 barrels of oil per day (bopd), out of which OVL’s share is 9,250 bopd from Block 1,2,4. SPOC is producing close to 4,600 bopd (OVL share 1,100 bopd) from Block 5A. While the partners of OVL in GPOC are CNPC, Petronas and Nilepet, in SPOC OVL has a partnership with Petronas and Nilepet.

Following the deteriorating security situation in the country from December 15, the joint operating companies decided to temporarily shut down operations in their oilfields. Following the shutdown, the production from the oilfields was completely stopped from December 22.

Due to the adverse security situation, OVL, in coordination with the Indian Embassy in South Sudan, has evacuated all its 11 personnel posted in the country. Other partners of OVL in the assets have also evacuated most of their personnel from the country.

“OVL is closely monitoring the security situation in the country and is in constant interaction with its partners in the assets and the Indian Embassy at Juba. Operations will be resumed once the situation has normalised,” the company added.