Sudan owes $418 mn to ONGC Videsh

Sudanese government’s refusal to extend an oilfield licence to ONGC Videsh Limited comes amid dues worth $418 million owed to OVL by the African nation. 

Sudan refused to extend the oilfield licence to operate Block 2B, which expired last November, saying it wanted higher royalties, tax, and profit petroleum. The block's revenue was affected by a drop in oil prices. Sudan’s dues to OVL till March come around $418 million, including those related to Sudan Product pipeline.

“As is the practice, production-sharing contracts are time-bound and this contract expired sometime in 2016-end. We were hoping to get the extension because there was