Indian oil company resumes production in S. Sudan

[Elisabeth Janaina]

Indian oil company resumes production in S. Sudan


May 26, 2013 (JUBA) - ONGC Videsh Ltd (OVL), the overseas investment
arm of state-owned Oil and Natural Gas Corp (ONGC), has resumed crude
oil production from its oilfields in Sudan, the Indian Times reported.

South Sudan resumed oil production last month after over a year of
shut down, prompted by a dispute over transit fees with neighbouring
Sudan.

OVL, according to the Indian daily, holds 24.125% stake in Block 5A
and 25% in Block 1, 2 and 4 in Sudan. After South Sudan’s split in
July 2011, Block 5A reportedly went to the new nation, while fields in
Block 1, 2 and 4 were split between the two countries.

“Production from Block 5A in South Sudan, which was producing 16,000
barrels per day before the shutdown of operations in January last
year, resumed on April 6,” OVL Managing Director, Dinesh Sarraf told
the Indian daily.

Sarraf, who reportedly steered OVL out of the post-Imperial Energy
acquisition debacle, said the company has been able to get joint
operator ship of Block 5A with Petronas of Malaysia.

“We have been able to convince Petronas to share operatorship with
us," he said.
Currently, Block 5A is said to be producing less than 5,000 barrels
per day and is expected to reach pre-shutdown levels before the end of
the current fiscal.

Sarraf, however, said the company continues to explore and discover
new oil reserves in both Block 5A and Block 1, 2 and 4.

South Sudan took with it 75% of the oil it previously shared with
Sudan, when it seceded from the latter nearly two years ago. Revenue
from oil, prior to the shut down, accounted for up to 98% of the new
nation’s budget.

Presently, OVL reportedly has 32 projects in 16 countries, of which 11
are producing, five are under development and 14 other are in the
exploratory phase.

(ST)