Indian OVL eyes French Total’s equity in Sudanese Block 5
NEW DELHI, June 20, 2004 (PTI) — ONGC Videsh Ltd, the overseas arm of state-run Oil and Natural Gas Corp, is keen to take French oil firm Total’s equity in Block 5 in southern Sudan.
“OVL has communicated its intent to take equity of Total, which had suspended its operations in Block 5 due to civil war sometime back,” industry sources said.
Total was operating on Block 5 in the Bor Basin but its search was interrupted in the southern province of Jonglei due to the outbreak of a rebellion. It carried out seismic surveys in early 1980s and found that Block 5 (then Block B) had the potential for oil production. The company, however, suspended operations in 1985.
Block B encompasses the area where El Muglad and Melut Basins join.
OVL, which holds stake in oil and gas properties in nine countries, has increased its hydrocarbon initiative with Sudan and has equity in three blocks – Greater Nile Oil Project, 5A and 5B – and plans to invest in a pipeline project as well as a refinery expansion project.
Sources said the company along with its partners Petronas of Malaysia and CNPC of China, plans to invest $200 million on exploration and development in GNOP, the only oil producing property in OVL portfolio, in addition to $500 million in production in 2005.
Currently, GNOP’s output is 300,000 bpd. China National Petroleum Corporation has a 40 per cent stake in GNPOC, while Malaysia’s Petronas has a 30 per cent stake. Sudanese state oil company Sudapet holds the remainder.
The consortium has put to production the Diffra field of Block 4 of GNOP. The first well in Block 4, DW-3 produced oil on May 15, 2004 followed by DW-1, DW-4, and Hamam-2. The fifth well Hamam-1 was commissioned on May 23, 2004. Oil production from Diffra has now been established and this field is currently producing nearly 20,400 bpd.
First commercial production for Block 4 achieved was on May 30, 2004. With this, additional oil production of GNOP has crossed 300,000 bpd mark, sources said.