Envoy: S. Sudan to respect India’s oil deals after independence
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By Julius N. Uma
May 03, 2011 (JUBA) - All contracts for Indian stakes in south Sudan’s
oil wells and their entities within the semi-autonomous region will be
honoured after the latter’s independence, a special envoy revealed
last week.
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Indian petroleum company, ONGC Videsh Limited
Priscilla Joseph Kuch, according Indo-Asia News Service (IANS), made
these assurances during a meeting she held with S.M Krishna, the
Indian external affairs minister in the capital, Delhi.
South Sudan is due to become independent in July after its population
overwhelmingly voted for separation during the January
self-determination referendum. The plebiscite was a key part of
Sudan’s 2005 Comprehensive Peace Agreement (CPA), which ended over two
decades of war between north and south of the country.
Also discussed, according to Vishnu Prakash, the ministry
spokesperson, was India’s hydrocarbon interests in the oil-rich South
Sudan which, he added, was reportedly “consolidating” and taking stock
of agreements in the sector. “Our understanding is that the agreements
pertaining to India will be honoured,” Prakash reportedly told
reporters.
Currently, according to IANS, India’s ONGC Videsh Limited is said to
have stakes in several wells in Sudan, with production reportedly
standing at 160,000 barrels per day. Out of this, 100,000 barrels per
day of production is reportedly from oil wells in South Sudan.
“OVL has already offered training and to go beyond the current level
of engagement,” Rajiv Shahare, the Indian external affairs ministry
secretary reportedly revealed.
OVL is a company began operating in Sudan in 2003. It built the
pipeline from Khartoum to Port Sudan. It has a 25% stake in Sudan’s
Greater Nile Oil Project, which produces 280,000 barrels of oil per
day. It is looking to expand its reach in South Sudan.
Regarded as being among the biggest players in Sudan’s oil sector,
along with China and Malaysia, India reportedly made an initial
investment of US$1 billion in the sector, which is said to have
increased to US$2.5 billion.
Over the years India has reportedly extended a US$566 million line of
credit, which includes building a 500 megawatt power plant. Bilateral
trade between India and Sudan was about $1 billion in 2010.
In March this year, the Energy and Mining ministry in the Government
of South Sudan and Petroliam Nasional Berhad (PETRONAS), a
Malaysian-owned oil and gas company signed a two-year memorandum of
understanding aimed at boosting mutual cooperation between the two
parties.
The document, signed in South Sudan’s capital, Juba, outlines the
overall principles of cooperation in the oil and gas sector between
the government and the Malaysian oil giants, creating an avenue
exploiting existing business opportunities in the two regions.
Founded on August 14, 1974, PETRONAS is owned by the Malaysian
government. Since its incorporation, the company has reportedly grown
to be an integrated international oil and gas company with business
interests in 35 countries.
(ST)
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