Showing posts with label Greater Nile Oil Project. Show all posts
Showing posts with label Greater Nile Oil Project. Show all posts

Friday, August 09, 2019

State-run co along with JV partners China, Malaysia upset as oil dues from Sudan rise to $500 million

SUDAN had denied ONGC and partners an extension of license to operate block 2B after the initial contract expired in November 2016. State-run company along with JV partners China, Malaysia are upset as oil dues from Sudan rise to $500 million. Full story below.

Article by Economic Times.india
By Sanjeev Choudhary, ET Bureau, 02 Aug 2019 09:32

ONGC, its partners likely to exit oil blocks in Sudan

NEW DELHI: ONGC and its Chinese and Malaysian partners have decided to exit their oil blocks in Sudan, frustrated by the years of reluctance by the Sudanese government to pay for the oil it lifts from these blocks.

ONGC has been engaged in an arbitration with Sudan for more than a year to recover its oil dues that have now climbed to $500 million. 

ONGC owns 25% stake in a joint venture that operates blocks 2A and 4 in Sudan whose output the local government had been lifting but not paying for since 2011. The balance stakes in the two blocks are split between China’s CNPC (40%), Malaysia’s Petronas (30%) and Sudan’s Sudapet (5%). 

“The company has reviewed the geopolitical situation in Sudan and has considered the option for exit from the operations in Block 2A, 4 in terms of article 14.1 of the JOA. The intention in this regard has been conveyed to the government of Sudan on 10 May 2019,” ONGC Videsh, the overseas arm of the state-run explorer, said in its financial statement. “Consequently, the company has provided Rs 5,979.71 million against the associated oil and gas and other assets in its consolidated financial statement.”

The amount being provided for is the carrying value of the oil assets in blocks 2A and 4 of Sudan, said a person familiar with the matter, adding that the project has already paid back the investment. 

ONGC Videsh declined comment for the story. 

The joint venture partners have requested Sudan to terminate the production license by August 31 and are awaiting a formal order from the government, the person quoted above said. 

Meanwhile, arbitration tribunal at the International Court of Justice has been formed to deal with the ONGC’s request for recovery of oil dues from Sudan. At the request of Sudan, the tribunal had suspended arbitration proceedings by three months until August 2, the person said. 

In 2003, ONGC Videsh had acquired 25% stake in the joint venture, Greater Nile Oil Project, which comprised blocks 1, 2 and 4, located about 800 km from Sudan’s capital Khartoum. After South Sudan was carved out of Sudan in 2011 following years of civil strife, all the blocks were split between the two countries. 

Sudan had denied ONGC and partners an extension of license to operate block 2B after the initial contract expired in November 2016.

Operations at blocks in South Sudan resumed this year after being shut for five years due to security issues. 

- - -

USAID 2001 Sudan Oil & Gas Concessions Map

To view a larger version of the following 2001 Sudan map from Wikipedia click here.  
Click, once or twice, on the image at Wikipedia to see full screen size.

Tuesday, July 28, 2009

S. Kordofan: Heglig, the biggest oil field in Sudan, could be a source of potential conflict between SPLM and NCP

Heglig, the biggest oil field in Sudan, could be a source of potential conflict between the SPLM and the NCP. Sudan Radio Service spoke to political analyst Mahjoub Mohamed Saleh from Khartoum on Monday who explained that:
"As long as Unity state is one of the ten southern states it means that Heglig belongs to the south. The ABC report said Heglig is part of Abyei, the PCA said it is not part of Abyei. The southerners are saying if the PCA has removed Heglig from the Abyei area, it should be part of Unity state. The north is saying no, it should be included in Southern Kordofan state. This is the situation now. There is no confusion in the PCA’s verdict regarding Heglig oil field, the PCA’s decision has redrawn the eastern boundary of Abyei which was stipulated in the ABC report. It arbitrates on a certain longitude which excludes Heglig out of Abyei province. The SPLM says it is out of Abyei province but it lies inside Unity state, and Unity state is a southern state. So these are new disagreements and have nothing to do with Abyei.” 
Full story from Sudan Radio Service, Monday, 27 July 2009: Where is Heglig? An Analyst Explains
(Khartoum) – Heglig, the biggest oil field in Sudan, could be a source of potential conflict between the SPLM and the NCP, following the verdict by the Permanent Court of Arbitration which has placed Heglig and Bamboo oil fields outside the Abyei boundaries. Sudan Radio Service spoke to political analyst Mahjoub Mohamed Saleh from Khartoum on Monday. [Mahjoub Mohamed Saleh]: “There is no confusion in the PCA’s verdict regarding Heglig oil field, the PCA’s decision has redrawn the eastern boundary of Abyei which was stipulated in the ABC report. It arbitrates on a certain longitude which excludes Heglig out of Abyei province. The SPLM says it is out of Abyei province but it lies inside Unity state, and Unity state is a southern state. So these are new disagreements and have nothing to do with Abyei.” Since the two partners have reaffirmed their satisfaction with the PCA’s verdict regarding the Abyei boundaries, Mahjoub explains the source of the disagreements. [Mahjoub Mohamed Saleh]: “The south thinks that it (Heglig) belongs to Unity state according to a previous decree made by the former late president Jafar Nimery. Since he had established Unity state he decreed that Heglig becomes part of Unity state. It was named Unity because it had united the south and the north together, that was the logic. But they are saying that as long as Unity state is one of the ten southern states it means that Heglig belongs to the south. The ABC report said Heglig is part of Abyei, the PCA said it is not part of Abyei. The southerners are saying if the PCA has removed Heglig from the Abyei area, it should be part of Unity state. The north is saying no, it should be included in Southern Kordofan state. This is the situation now.” The SPLM said it is prepared to refer the issue of the Heglig oil fields to the PCA, if necessary. However Mahjoub says that the PCA has already announced its final decision regarding Abyei issue. [Mahjoub Mohamed Saleh]: “The court has no other business regarding this issue, it had announced its arbitration as the case was presented by the two parties, and both of them have accepted and welcomed the verdict, finish.” Mahjoub Mohamed Saleh, a political analyst, was speaking to Sudan Radio Service from Khartoum.
- - - USAID 2001 Sudan Oil & Gas Concessions Map Click here to view large version of the following map from Wikipedia.  Click, once or twice, on image at Wikipedia to see full screen size. Heglig, the largest oil field in Sudan
Click here to view Heglig pin pointed on the following map from Wikipedia. Heglig Location in Sudan Coordinates: 11°59′N 27°53′E Country: Sudan State: South Kurdufan Heglig (also spelled Heglieg) is a small town in South Kurdufan state in central Sudan, near the border with Southern Sudan. The area was contested during the Sudanese Civil War. The South Sudanese Sudanese People's Liberation Army (SPLA) rebels attacked the oil rigs of Heglig to damage this important source of revenue for the Sudanese government. Heglig oil field Heglig is situated within the Muglad Basin, a rift basin which contains much of Sudan's proven oil reserves. The Heglig oil field was first developed in 1996 by Arakis Energy (now part of Talisman Energy).[1] Today it is operated by the Greater Nile Petroleum Operating Company.[2] Production at Heglig is reported to have peaked in 2006 and is now in decline.[3] The Heglig oil field is connected to Khartoum and Port Sudan via the Greater Nile Oil Pipeline. (Source: Wikipedia) Click here to view larger image of map above showing Sudan's pipeline, North-South boundary, Abyei and oil concessions. Image source: www.stratfor.com