Business

Sudan holds up OVl oil field licence extension

PTI

Sudan is holding up extension of licenceto ONGC Videsh over an oil field as the Government seeks higher royalties, tax and profit petroleum even as it delays paying nearly $300 million in oil dues. The licence for Block 2B expired last week and an automatic 5-year extension is available, but Sudan, whose revenues have been hit with a drop in oil prices, wants higher taxes and royalties before it agrees to the same, officials said. OVl, the overseas arm of the state-owned Oil and Natural Gas Corporation (ONGC), in 2003 had bought a 25 per cent stake in Greater Nile Oil Project (GNOP) comprising Block 1, 2 and 4 in the undivided Sudan. It lies in the prolific Muglad basin, about 780 kms in the South-West of Khartoum, the capital of Sudan.