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OVL signs pipeline contract with Govt. of Sudan

New Delhi, July 1, 2004

ONGC Videsh Ltd. (OVL), a fully owned subsidiary of ONGC, has signed a USD 194 Mn contract with the Ministry of Energy and Mining, Govt. of Sudan on 30th June, 2004 for construction of 741 Kms long multi-product Pipeline. This is the maiden Engineering & Construction Project of ONGC Group abroad. 

The proposal of OVL to enter into an Agreement with Govt. of Sudan, to construct a multi-product Pipeline system, was approved by the Cabinet Committee of Economic Affairs (CCEA) on 24/6/04.

Sudan Pipeline Project envisages laying of a Pipeline System from Khartoum Refinery to Port Sudan (741 Kms. long and 12” dia) for evacuation of the petro-products from Khartoum Refinery, capacity of which is being upgraded by Govt. of Sudan. 

The Pipeline system is designed for a throughput of 0.826 MMTPA in phase I and 2.54 MMTPA in phase II, of MO Gas & Gas Oil. The Pipeline is to be laid in the existing ROW (Right of Way). The project is to be completed in 16 months.

OVL, presently, has an equity stake in the E&P projects in Sudan. The E&P projects are Greater Nile Oil Project (GNOP), promising 3.3 MMTPA of crude oil and 5A & 5B blocks, having a potential of up to 3-3.5 MMTPA of Crude oil.

Mr. Subir Raha, Chairman, ONGC Videsh Ltd., expressed his gratitude to the Government and the People of Sudan, and observed that the expanding, multi-faceted commitment of ONGC Videsh will reinforce the centuries – old friendship between the two great countries. 

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