India’S Ongc Videsh To Acquire Stake In Sudanese Oil Blocks

NEW DELHI, Oct 06, 2003 (AsiaPulse) — Malaysian oil firm Petronas has cleared the way for ONGC Videsh Ltd’s acquisition of stake in two onshore oil blocks in Sudan by waiving off its first right to buyout Austrian firm OMV’s stake.

“Petronas has agreed to waive off its pre-emption right to acquire OMV Aktiengesellschaft’s stake at the price OVL is paying the Austrian firm,” company sources said.

OVL, the overseas arm of state-run Oil and Natural Gas Corp (BSE:ONGC), will acquire OMV’s 26.125 per cent stake in exploration block 5A and 24.5 per cent stake in Block 5B for US$115 million.

Petronas Carigali Overseas Sdn Bhd (Petronas) is the operator of Block 5A while Sudan’s national oil company Sudapet has remaining 5 per cent.

In Block 5B, Petronas has 41 per cent, Sudapet 10 per cent and Swedish oil concern Lundin Petroleum AB 24.5 per cent.

As per the contract for Block 5A and 5B, partners have the first right to acquire if anyone of them decides to exit.

“Petronas has agreed to waive this right in OVL’s favour,” sources said, adding that the transaction is now subject to Sudanese government approval.

Exploration blocks 5A and 5B are located in the Muglad basin and are adjacent to the Greater Nile Oil Project, where OVL acquired 25 per cent stake in March this year from Talisman Energy Inc of Canada.

Block 5A contains the undeveloped Thar Jath field with gross proven and probable oil reserves of 149.1 million barrels.