Tuesday, November 2, 2010

Sudan’s oil minister Lual Deng Lual reassures India about its oil investments in Sudan

November 1, 2010 (KHARTOUM) – Indian oil investments will not be affected by the independence of southern Sudan following a referendum scheduled to take place next January.

Minister Lual Deng Sudan’s oil minister Lual Deng Lual who is currently visiting India told reporters in New Delhi that Indian investments in southern Sudan oil will be preserved disclosing that "a formula is being worked out" in this regard.

Lual is attending the ninth Petrotech International Oil and Gas Conference and Exhibition organized by the Indian Ministry of Petroleum and Natural Gas.

ONGC’s overseas arm ONGC Videsh Ltd (OVL) has a 24.125 per cent stake in Sudan’s Block 5A. OVL also has a 25 per cent stake in Sudan’s Greater Nile Oil Project (Block 1, 2 and 4), which produces 280,000 bpd.

OVL, which entered Sudan in 2003, already has three oil blocks in Sudan. It has also built a 741-km-long multi product Pipeline linking Khartoum Refinery to Port Sudan.

India meets about 80% of its crude oil requirement and 20% of its natural gas requirement through imports. Indian demand during the next 10 years for oil is expected to increase by 40%.

The Sudanese minister said that his country is seeking to build a 150,000 barrels-per-day refinery at Port Sudan by the end of this year, stressing that Sudan welcomes any investment partners.