India to give 3% stake in its oil blocks to the Sudan
NEW DELHI, Aug 17, 2004 (The Telegraph) — The Cabinet Committee on Economic Affairs (CCEA) today cleared an ONGC Videsh proposal to give a 3 per cent stake in two of its oil blocks in Sudan to Sudapet, the national oil company of Sudan.
At present, OVL has a 26.125 per cent stake in block 5A and a 24.5 per cent in block 5B in Sudan. The foreign arm of ONGC had decided to expand its operations in Sudan after acquiring a share in the Greater Nile oilfield project there.
OVL had bought Austrian company OMV’s s 26.125 per cent stake in block 5A and 24.5 per cent interest in block 5B for $ 136 million.
Sudapet will get OVL’s share free of cost and the Indian firm will appropriate the farm-out stake from the price it paid to OMV.
While India is already getting 3.2 million tonnes of crude oil per annum for its 25 per cent share in Greater Nile oil project, blocks 5A and 5B are estimated to give it an additional 2.5 million tonnes.
After the farm-out, the return on investment from block 5A would be in the range of 11.52 per cent to 16.15 per cent while in the case of block 5B it would be between 12.41 per cent to 17.06 per cent.
In block 5A, Petronas of Malaysia has a 68.875 per cent stake, while Sudapet has the remaining 5 per cent. In block 5B, Petronas has a 41 per cent stake, while Swedish firm Lundin Petroleum AB has a 24.5 per cent and Sudapet 10 per cent.
Earlier in the evening, Union cabinet approved six legislations, including the government securities bill and new seeds bill which will now be introduced in Parliament
The cabinet meeting, chaired by Prime Minister Manmohan Singh, also approved the Credit Information Companies (regulation) Bill and an amendment to the Central Road Fund Act for apportioning of additional cess between rural roads and national highway development projects phase-II.
An official spokesperson said another legislation would be enacted on the use of the state emblem of India.
The cabinet also decided to repeal the Displaced Persons (Compensation and Rehabilitation) Act of 1954 and other related acts.
The Government Securities Act will be enacted in place of Public Debt Act of 1944. The Indian Securities Act of 1920 will also be repealed.
The new seeds act will replace existing Seeds Act of 1966 and Seeds Control Order of 1983.