ONGC Videsh Ltd (OVL) is planning to quit a prospective acreage in Sudan and is writing off investments of about $90 million (approx Rs 450 crore).

The acreage, identified as Block 5B, is in the southern part of the Muglad basin in south Sudan and spread across 20,000 sq km.

OVL is exiting the acreage by deciding against taking part in further exploration work or investing more after the term for first phase of prospecting ends on 01 May 2009. The decision was taken after the regional government allowed Maldovan firm Ascom to prospect in the acreage in breach of Sudan National Petroleum Commission's resolution and decrees from the federal government. The Moldovan firm is reported to have dug three exploratory wells in a hurry. But these turned out 'dry' as they were dug without proper geological study.

"The idea was that if they could make a wildcat discovery then they could stake claim and keep the block. The Sudan government was trying to resolve the issue through a package deal with the parties..." a government source told Times of India.

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OVL gets Government nod for investment in Satpayev block (22-Apr-09)