Sudan gives Indian firm $1.2-billion refinery contract

KHARTOUM, Sudan, Feb 6, 2005 (PANA) — Authorities in Khartoum have given a contract to India’s state-owned Oil and Natural Gas Corp. (ONGC) to build a $1.2-billion oil refinery at Port Sudan, the minister of energy and mining, Awad Ahmed Al-Jazz confirmed here.

“We had previously awarded the work of building a 100,000-barrel per day refinery at Port Sudan (the country’s main seaport) to Malaysian firms but the project could not take off” he explained Saturday.

“We have now mandated Oil and Natural Gas Corp. to build the
refinery” the official Sudan New Agency (SUNA) quoted the
minister as saying Saturday.

The country wants to build the refinery mainly for export of
petroleum products to south and east African countries, he said.

The Indian firm will build the refinery, which will refine Nile
Blend crude oil produced in southern Sudan, on a build, operate
and transfer (BOT) basis, he said.

Sudan has also mandated ONGC to build a $200-million multi-
product export pipeline from the Khartoum refinery to Port Sudan
on the Red Sea, about 740km away.

“Work on the pipeline began last week and is expected to be
completed by August 2005,” Al-Jazz explained.

ONGC said it would raise finance from outside sources to fund the
two projects.

ONGC already has 25 percent stake in the Greater Nile Oil
Consortium (grouping Sudapet, Malaysia, China as well as
India) in Sudan and also has interests in two exploration blocks,
5A and 5B.