Talisman: Sale of Sudan stake to ONGC unit imminent

March 12, 2003
Canada's Talisman Energy Inc. expects to complete the sale of its 25% stake in a Sudan oil field to New Delhi-based ONGC Videsh Ltd. (OVL) by the end of March.

By an OGJ correspondent

MUMBAI, Mar. 11 -- Canada's Talisman Energy Inc. expects to complete the sale of its 25% stake in a Sudan oil field to New Delhi-based ONGC Videsh Ltd. (OVL) by the end of March.

"The government of Sudan supports Talisman's sale to OVL, and we are working towards that objective," a company spokesman said. "We continue to expect sale completion within March."

OVL could not complete its earlier $720 million deal to buy Talisman's stake, as partners in the Greater Nile Oil Project (GNOP) blocked it. Those partners—Malaysia's Petronas (30%), Chinese National Petroleum Co. (40%), and state-owned Sudanese company Sudapet (5%)—hold first right of refusal if any member decides to exit the project.

"Although there have been delays, completion of the Sudan sale is progressing," the spokesman said. "Discussions have progressed between the government of Sudan and the other owners of the GNOP, and consent documentation is being finalized."

The deal was referred to the Sudan government after Petronas and CNPC exercised their contractual rights of purchase, sources said. They said India would get 3 million tonnes of crude oil annually from the stake in the producing field.

Sources said OVL expects to retain all 80 or so local Talisman employees to manage the 1,500 km pipeline connecting the producing fields to Port Sudan on the Red Sea.

Meanwhile, the UK's Cairn Energy PLC rejected a $200 million bid by the Indian government-owned Oil & Natural Gas Corp. (ONGC) for all of its oil and gas properties off the eastern and western coasts of India.