ONGC Videsh Ltd (OVL) has agreed to give Sudan 5% of its stake in two Sudanese oil blocks in return for help from Khartoum in another oil producing field. Sudan helped OVL in its buyout of Talisman Energy in the Great Nile Oil Project, and pressed OVL in return to relinquish 5% of its 26.125% stake in block 5A and 24.5% interest in block 5B.
Sudan's national oil company Sudapet Co Ltd also advised OVL's managing director that it was also willing to sign a deal with OVL to build a product pipeline and upgrade Port Sudan refinery.
After the farm-out, the return on investment from block 5A would be in the range of 11.52-16.15% while from block 5B it would be between 12.41-17.06%, OVL sources said.