ONGC Videsh Finalizes Acquisition of Sudan Assets

ONGC Videsh has closed the transaction with OMV Aktiengesellschaft of Austria for buying its entire interests in two onshore exploration blocks in Sudan, namely Blocks 5A & 5B. The sale price paid to OMV was about US $ 115 Million. With conclusion of this transaction, OVL now owns 26.125% stake in Block 5A & 24.5 % stake in Block 5B.

The exploration blocks 5A & 5B are located adjacent to the Greater Nile Oil Project, where OVL acquired 25% stake in March 2003 from Talisman Energy Inc, Canada. In block 5A, OVL's partners will be Malaysian national oil company Petronas and Sudanese national oil company Sudapet. In exploration block 5B, OVL will partner Petronas, Sudapet and Swedish oil company Lundin Petroleum AB. Two major discoveries namely Thar Jath & Mala #1 have been made in Block 5A and more than 200 Million Barrels of oil reserves have already been established. An interim development plan is currently being prepared for starting oil production from these fields. In Block 5B, seismic acquisition and interpretation work presently ongoing.

The Deed of Assignment for the Sudan exploration blocks were signed in New Delhi by Mr. V. Ravindranath, Executive Director OVL and Mr. Paul Griggs, Vice President, Business Development, OMV. Mr. Subir Raha, Chairman, OVL and Mr. R.S. Butola, MD in-charge of OVL were present at the occasion.