Peace in Sudan means work resumes at Block 5B

Vol 9, PW 18 (15 Dec 05) News in Brief
     

Peace prospects in Sudan have brought good news to ONGC Videsh with exploration work resuming at onshore block 5B, where it holds 23.5%.

On 7th December, Lundin Petroleum of Sweden and OVLs consortium partner with 24.5%, announced that operator White Nile Petroleum Operating Company (a joint venture between Petronas and Sudapet) would shoot 1100-km 2D in the first half of 2006 and drill three exploratory wells in late 2006. Onland Block 5B measures 20,119-sq km in the producing Muglad basin and was awarded to the Petronas-led consortium on 2nd May 2001.

Till date no work has been carried out because of civil war. OVL also has a 24.125% stake in Block 5A and this should start producing 50,000 b/d by early next year.

OVL tells us it wants to consolidate production from Block 5A with production from the Greater Nile Oil Project where it has a 25% stake. GNOP is producing 300,000 b/d rising to 340,000 b/d next year.