Sudan offers three oil blocks to India for exploration

Seekin greater energy cooperation with India, Sudan has offered state-owned ONGC Videsh Ltd three more oil and gas blocks for exploration and production. Currently, OVL, the overseas investment arm of state-owned Oil and Natural Gas Corp (ONGC), has a 25% stake in Greater Nile Oil Project (GNOP) in Sudan that produces about 50,000 barrels of oil per day. 

The offer was made by visiting Sudanese Oil Minister Mohamed Zayed Awad to Dharmendra Pradhan, minister of state for petroleum and natural gas.

“They have offered three more oil blocks for exploration and production and also asked the current Indian companies operating in India to raise production,” said Pradhan after meeting Awad on the sidelines of the 4th India-Africa Hydrocarbons Conference in New Delhi.

 

Awad said Sudan has offered Blocks 8, 15 and 24 for exploration of oil and has asked OVL to consider buying a stake in producing Block 17. Block 17 currently produces 7,000 bpd of oil. Sudan wants the Indian firm to raise output from the producing Block 17 and exploration areas offered and recoup the dues of $240 million from it. Star Oil is the operator of Block 17 with 66 per cent stake while the remaining is with Sudan's Sudapet.

Pradhan said Sudan is also keen on Indian firms setting up a coastal refinery to meet not just local fuel demand but also export to other African nations.

"The issue of $240 million pending dues was also discussed and modalities are being worked out for that," he said. Sudan has not paid OVL for the oil from GNOP it consumed. Sudan wants the Indian firm to raise output from the producing Block 17 and exploration areas offered and recoup the dues from it. Star Oil is the operator of Block 17 with 66% stake while the remaining is with Sudan's Sudapet.

Also discussed was renewal of licence for Block 2B, which is part of GNOP. The licence for the block expires in November and OVL and its partners China National Petroleum Company (40% stake), Petronas of Malaysia (30%) and Sudapet (5%) want a 5-15 year extension.

OVL had in 2003 bought a 25% stake in GNOP which comprised of Block 1, 2 and 4 in the undivided Sudan. Upon secession of South Sudan from Sudan, Blocks 2A, 2B and 4N are in Sudan and Blocks 1A, 1B as well as 4S are in South Sudan.
Block 2B is producing 50,000 bpd of oil while Block 4 is under exploration phase. The crude oil produced from oil field of GNOP, is transported through a 1504-km pipeline to Port Sudan at Red Sea.