India government asks OVL not to make long-term deals for Sudan oil

NEW DELHI, Feb 05, 2004 (PTI) — The Government has asked ONGC Videsh Ltd not to enter into long-term contracts for sale of its share of crude oil from a Sudan oil field with foreign firms, the Lok Sabha was informed today.

“With a view on the energy security of the country, OVL has been advised not to bind the supplies of Nile Blend crude (from its Sudan field) on a long-term contract basis with any party”, the Minister of State for Petroleum & Natural Gas, Ms Sumitra Mahajan said in a written reply.

OVL is entitled for 25 per cent of the 13 million tonnes of crude oil produced from Greater Nile Oil Project in Sudan. It had last year bought Canadian Talisman Energy’s 25 per cent stake in GNOP to secure the country its first producing oil field.

The Government has empowered OVL with investing in oil and gas fields abroad with a view to cut India’s import dependence to meet its energy needs. India currently imports 70 per cent of its 105 million tonnes crude oil requirement every year.

“It is not envisaged that the entire equity hydrocarbons (oil and gas) come to India at all times. It would depend upon logistics, technical flexibility and commercial viability”, she said.

However, the Government has advised OVL that state-run Indian Oil Corp, Hindustan Petroleum Corp Ltd, Bharat Petroleum Corp Ltd and Mangalore Refinery and Petrochemicals Ltd should take the crude oil (Nile Blend) from the Sudan asset to the extent of their requirement and that the balance quantity be sold by OVL in a transparent manner on commercial considerations.