Sudan Owes $418 MN to ONGC Videsh

Sudan refused to extend the oilfield licence to operate Block 2B, which expired last November

 

Sudanese government’s refusal to extend an oilfield licence to ONGC Videsh Limited comes amid dues worth $418 million owed to OVL by the African nation. 

Sudan refused to extend the oilfield licence to operate Block 2B, which expired last November, saying it wanted higher royalties, tax, and profit petroleum. The block's revenue was affected by a drop in oil prices. Sudan’s dues to OVL till March come around $418 million, including those related to Sudan Product pipeline.

“As is the practice, production-sharing contracts are time-bound and this contract expired sometime in 2016-end. We were hoping to get the extension because there was a provision for that and international partners in the consortium including OVL performed excellently in the project. But the government of Sudan chose not to extend the licence, though we had offered our best work programme and investment commitments to bring out production at higher level along with our consortium partners,” said Narendra K Verma, managing director of OVL.  

The foreign arm of Oil and Natural Gas Corporation (ONGC) had bought 25 per cent stake in Greater Nile Oil Project comprising Block I, II and IV in undivided Sudan.

Reference - http://www.business-standard.com/article/companies/sudan-owes-418-mn-to-ongc-videsh-117051600039_1.html