ONGC out of Sudanese oilfield post payment default
After facing years of payment default, the country’s largest oil and gas explorer Oil and Natural Gas Corporation has finally exited from Sudanese oilfields, relieving itself of yet another toxic overseas asset.
By : migrator
Update: 2020-09-17 19:14 GMT
New Delhi
Company sources said all the three overseas investors in the Sudanese oilfield including ONGC Videsh Ltd (OVL), the overseas investment arm of the state-owned firm, Chinese entity CNPC and Malaysia’s Petronas have now withdrawn from the block. The OVL had a 25 per cent stake in Block 2A&4 in Sudan while CNCP had 40 per cent and Petronas 30 per cent. Sudan’s Sudapet had 5 per cent interest.
The OVL has been operating the block of Greater Nile Oil Project in Sudan along with partners CNPC and Petronas since 2003. But, Sudan has not paid all the partners for the oil bought since 2011 that had built up millions of dollars of dues with OVLs share itself coming to over $ 400 million.
Not only the payment for the oil, OVL has also not been paid for the pipeline it built connecting the oilfield to Port Sudan. Sources said with diplomatic channels also being exhausted to resolve the issue, OVL has now initiated arbitration proceedings against the Sudanese government and has exited from the exploration and production agreement for the oilfield.
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