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Talisman sells Sudan oil project to ONGC

Talisman Energy Inc said on Wednesday it will sell its stake in a controversial Sudan oil project to India's Oil and Natural Gas Corporation for C$1.2 billion ($758 million), removing uncertainty about its plans and pressure from critics that has dragged down its shares.

Talisman expects to book a C$340 million accounting gain from selling its stake in the oil project, now producing about 250,000 barrels of oil per day.

"We received other proposals, but we consider this to be the most attractive opportunity, generating a full-cycle, after-tax rate of return of approximately 30 per cent," chief executive Jim Buckee said in a statement.

Sources said an announcement to this effect will be made later on Thursday simultaneously by Minister for Petroleum and Natural Gas Ram Naik in Mumbai and Talisman Energy in Canada.

The oil field has reserves of 150 million metric tonnes per annum which translates into production of 1,050 million barrels, they said adding it was almost equal to production of India's prime Bombay High field.

"Currently, the Sudan field is producing 12 million tonnes per annum (2.40 lakh barrels per day from its Heglig and Unity fields), and as of August 31, 2002 OVL has bought three million tonnes from it", sources added.

The Greater Nile Oil Project consists of four blocks in the Muglad Basin and a 1,500-km pipeline from the producing fields to Port Sudan on the Red Sea.

China National Petroleum Corporation holds 40 per cent stake, Malaysia's Petronas 30 per cent and Sudan's Sudapet the remaining 5 per cent in the project.

However, sources said, these two foreign partners are yet to approve OVL's entry into the project.

(With additional inputs from PTI)

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