OMV/Sudan/Blocks: Sells Stakes In Blocks 5A, 5B

VIENNA, Sep 2, 2003 (Dow Jones) — Austrian oil and gas group OMV AG (R.OMV) Tuesday said it has agreed to sell its stakes in two exploration blocks in Sudan for $115 million.

The contracts for the blocks, 5A and 5B, in the Muglad Basin, were signed with India's ONGC Videsh Ltd, owned by the Indian Oil and Natural Gas Corp., ONGC.

The deal will be effective, retroactively, from Jan. 1, 2003. OMV says it will use proceeds from the sale for further expansion.

Completion of the sale needs approval from the Sudan Government and OMV's consortium partners, which should come within the next few months.

OMV bought a 26% stake in Block 5A, operated by Lundin Sudan Ltd in 1997. Its consortium partners are Malaysia's Petronas (P.PGS) and the Sudanese state-owned company Sudapet. Petronas acquired Lundin's shares in 2003.

In 2001 OMV bought a 24.5% stake in block 5B, operated during exploration by Petronas. Sudapet and Lundin are OMV's consortium partners for block 5B.