Sudan Okays sale of Talisman’s stake in Greater Nile Oil Project
The Sudanese government has finally consented to approve the $1.2-billion sale of Talisman Energy’s 25 percent interest in the Greater Nile Oil Project (GNOP) to ONGC Videsh Limited (OVL), a subsidiary of India's state-owned Oil and Natural Gas Corporation (ONGC), reported OGI.
The sale is now expected to proceed to closure by month end. The controversial deal, first announced on October 31, 2002, was held up due to objections raised by the other members of the consortium that owns the GNOP. The project’s key participants—state oil companies of China, Malaysia and Sudan—were displeased with the transaction.
The partners, who demanded to be consulted before the sale, were considering exercising their right of first refusal in the hope of increasing their own stakes in project instead of handing over Talisman’s share to a new investor.
Talisman, Canada’s second largest oil and gas company, decided to pull out from the project after it had been harshly criticized by human rights organizations for investing in the war-torn east African country. Talisman expects a $340-million gain from the deal.
GNOP is current held by China National Petroleum Corporation (CNPC), with a 40 percent stake, Petronas Carigali (30 percent), Talisman (25 percent) and Sudapet (five percent). It is made up of four blocks in the Muglad Basin and a 1,500-kilometer pipeline from the producing fields to Port Sudan on the Red Sea. — (menareport.com)
© 2003 Mena Report (www.menareport.com)