|ONGC Videsh Concludes Transaction With OMV Aktiengesellschaft, Austria For Buying Its Interests In Sudan Exploration Blocks 5A And 5B.|
12 May, 2004
ONGC Videsh Ltd (“OVL”) today 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.
OMV is the leading oil and gas group in Central Europe and is one of Austria’s largest listed oil and gas companies. It has exploration and production operations in 16 countries world-wide. OMV also owns oil & gas supply systems, retail networks and integrated chemical and plastic manufacturing units in Central and Eastern Europe.
The Deed of Assignment for the Sudan exploration blocks were signed today at 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 on the occasion.