Non-payment of dues forces ONGC to withdraw from Sudan oil fields
India's Oil and Natural Gas Corp (ONGC) has exited from Sudan oilfields after the African nation refused to pay for oil it lifted from the fields.
ONGC Videsh (OVL), the overseas investment arm of the state-owned firm, as also its Chinese partner CNPC and Malaysia's Petronas have withdrawn from the block, a top company official said.
OVL had a 25 per cent stake in Block 2A&4 in Sudan while CNCP had 40 per cent and Petronet 30 per cent. Sudan's Sudapet had 5 per cent interest.
Sudan had since 2011 not paid OVL and partners for oil it bought from the block. Sudan's dues towards OVL totalled $430.69 million, the official said.
The company initiated arbitration proceedings against the Government of Sudan to recover the dues and has terminated the Exploration and Production Sharing Agreement (EPSA), he said.
OVL had also not been paid about $99 million for the 741-km-long pipeline it built from Khartoum to Port Sudan.
The project cost and rental of $254 million was to be paid by Sudan in 18 half-yearly equated instalments of $14.135 million each starting from December 30, 2005. The company got a total of 11 instalments ($155.48 million) till December 2010 and the balance seven instalments amounting to $98.94 million remained outstanding.